Developing countries to be affected unevenly as global economic growth set to slow: UN report

The UNCTAD's Trade and Development Report 2026 predicts that global economic growth will decelerate to 2.6% in 2026 and 2.7% in 2027, down from 2.9% in 2025. This slowdown will be particularly pronounced in developing economies, which are expected to experience growth of only 4% in 2026, down from 4.7% in the previous year. This trend is attributed to mounting technological and policy barriers, as governments increasingly employ industrial, trade, financial, and technology policies to achieve economic and national security objectives.

The report highlights that developing countries will be affected unevenly as the global trade landscape reconfigures, with some nations potentially emerging as alternative suppliers or intermediary hubs. However, sustaining these gains will necessitate enhanced productive, regulatory, and institutional capabilities.

Brief written by urgent.news from Dawn Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.