Global economic growth expected to slow to 2.6% in 2026: UNCTAD

GENEVA - The United Nations Trade and Development (UNCTAD) has projected that global economic growth will be 2.6 percent in 2026, down from 2.9 percent in 2025.

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.

In 2026, rising energy prices are pushing up trade values, while trade in goods and services is projected to expand by about 4 percent at constant prices, the report said.

According to the report, Asia is set to account for 59 percent of global growth in 2026. East Asia sits at the heart of the rapid expansion in semiconductors and advanced computing manufacturing.

The report noted that artificial intelligence (AI) products have become the main driver of merchandise trade, yet growth in AI-related trade does not automatically translate into broad development gains.

The report warned that the energy shock and financial instability are putting the global economy to the test.

It argued that the energy shock underscores the need to diversify energy supply. Addressing energy and supply bottlenecks is more effective against supply-driven inflation than broad monetary and fiscal tightening, the report said.