Global economic growth expected to slow to 2.6pc in 2026: UNCTAD
In its Trade and Development Report 2026 released on Friday, UNCTAD said developing economies are expected to grow by 4 percent this year, easing from 4.7 percent in 2025.
GENEVA, Oct. 9 (Xinhua) — United Nations Trade and Development (UNCTAD) has predicted that the world economy will expand by 2.6 percent in 2026, a decline from the 2.9 percent growth anticipated in 2025. The UN agency's latest Trade and Development Report 2026, unveiled on Friday, revealed that developing nations are forecasted to experience a 4 percent increase this year, a slight reduction from 4.7 percent growth in 2025.
Rising energy costs are driving up trade values, while projected trade in goods and services is expected to rise by approximately 4 percent at constant prices, according to the report. The report states that Asia is projected to contribute 59 percent of the global growth in 2026. The heart of this rapid expansion in semiconductors and advanced computing manufacturing lies in East Asia.
The report highlights that artificial intelligence (AI) products have emerged as the leading driver of merchandise trade; however, growth in AI-related trade does not inherently lead to widespread development benefits. The report cautions that the energy shock and financial instability are testing the global economy. It emphasizes that the energy shock underscores the necessity to diversify energy supply sources.
The report suggests that tackling energy and supply bottlenecks is more effective in addressing supply-driven inflation than widespread monetary and fiscal tightening measures.
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