rki.news | Source: Xinhua
GENEVA, October 9: Global economic growth is projected to slow to 2.6% in 2026 from 2.9% in 2025, according to the United Nations Trade and Development (UNCTAD).
In its Trade and Development Report 2026 released Friday, UNCTAD said developing economies are expected to grow by 4% this year, down from 4.7% in 2025.
The report projected that trade in goods and services would expand by around 4% at constant prices, while rising energy prices push up trade values.
Asia is expected to account for 59% of global economic growth in 2026. East Asia remains central to expanding semiconductor and advanced computing manufacturing.
Artificial intelligence products have become a major driver of merchandise trade. However, UNCTAD cautioned that growth in AI-related trade does not automatically deliver wider development benefits.
The report warned that energy price shocks and financial instability are testing the global economy.
It called for diversifying energy supplies and addressing energy and supply bottlenecks. According to UNCTAD, tackling supply constraints is more effective against supply-driven inflation than relying on broad monetary and fiscal tightening.
