Global growth set to slow

Global economic growth is set to slow, with projections indicating a 2.6% growth rate in 2026 and 2.7% in 2027, down from 2.9% in 2025. The Trade and Development Report 2026, published by the United Nations Conference on Trade and Development (UNCTAD), attributes this slowdown to mounting technological and policy barriers. Governments are increasingly utilizing industrial, trade, financial, and technology policies to achieve economic and national security objectives.

Access to markets and the ability to move into higher-value activities are now more dependent on technology, finance, and geopolitics. Developing countries are expected to experience an uneven impact from the reconfiguration of global trade, with some emerging as alternative suppliers or intermediary hubs. However, sustaining these gains will necessitate stronger productive, regulatory, and institutional capabilities.

Global trade reached a record $35 trillion in 2025, driven by rising prices due to the energy shock. Trade patterns are also shifting, with a significant decline in trade between China and the United States by more than 20% since 2024. Asia remains the most dynamic exporting region, with intra-Asian merchandise trade rising markedly.

South-South trade is deepening as China and other major Asian exporters increase shipments to emerging markets. Import growth is expected to be strongest in Asia, followed by North America, where demand for artificial intelligence-related goods has supported overall imports.

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