The global economy is on a slippery slope, according to a United Nations report, which finds that global growth in 2025 is expected to slow by 0.5% compared to the previous year—signaling a real risk of recession.
“The slowdown has been driven by rising uncertainty and escalating trade tensions in recent weeks,” the UN notes in the report.
According to the UN, global GDP is projected to grow by 2.3% this year, down from the 2.8% growth seen in 2024.
“Trade policy uncertainty is at an all-time high. This is already translating into delayed investment decisions and reduced hiring,” the study warns, attributing the alarming trend to supply chain disruptions and financial market volatility caused by the recent trade offensive from the U.S. administration.
Moreover, the trade standoff between the world’s two largest economies—the U.S. and China—has had a significant impact on global trade.
“From Seoul to São Paulo, manufacturers are reassessing their strategies, halting investments, and cutting jobs,” the report states.
/Argumentum.al
