The UN Conference on Trade and Development (UNCTAD) has released its Trade and Development 2025 Report, highlighting how shifts in financial markets are affecting global trade and broader economic conditions, ultimately dampening growth prospects. The report notes that despite the positive momentum generated by emerging technologies such as AI, global growth in 2026 is still projected to stay modest at 2.6%.

For developing economies, UNCTAD forecasts a stronger expansion of 4.3% this year, well above the growth rate in developed economies. However, it warns that high financing costs, volatile capital flows, and mounting climate-related risks are constraining fiscal space and limiting the investment needed to maintain long-term growth.

The Organization for Economic Cooperation and Development (OECD) on Tuesday released its own outlook, projecting that global GDP growth will slow from 3.2% this year to 2.9% next year.