Global Economic Growth to Slow in 2026 Before Rebound, UN Report Finds

# Global Economic Growth to Slow Down in 2026, UN Report Projects The United Nations has forecast a slight decline in global economic growth rates, projecting a drop from 2.8% in 2025 to 2.7% in 2026, before rebounding to 2.9% in 2027. This growth trajectory remains below the pre-pandemic average of 3.2%, signaling a continued period of economic adjustment.

In its latest report, *World Economic Situation and Prospects 2026*, released on Thursday, January 8, by the UN Department of Economic and Social Affairs, analysts highlight that while trade tensions escalated due to significant U.S. tariff hikes in 2025, the international trade system has shown resilience. The report attributes this resilience to increased shipments, inventory buildup, and robust consumer spending amid monetary easing policies and a stable labor market.

Despite the tariff-related challenges, the global economy is expected to maintain stability, though growth in trade and overall economic activity may decelerate in the short term. The report emphasizes that sustained macroeconomic policy support will help mitigate the adverse effects of higher tariffs.

Looking at major economies: - **United States**: Economic growth is projected to stabilize at around 2.0% in 2026, as a softening labor market dampens growth momentum. - **European Union**: Growth is expected to slow to 1.3%, driven by U.S. tariff increases and ongoing geopolitical uncertainties affecting exports. - **Japan**: Economic growth is forecast to be modest at 0.9% in 2026, reflecting weakening external conditions.

The report also provides regional outlooks: - **East Asia**: Projected to grow at 4.4%, - **South Asia**: Expected to lead with a robust expansion of 5.6%, - **Africa**: Forecast to grow at 4.0%, - **Latin America and the Caribbean**: Anticipated growth of 2.3%, - **Commonwealth of Independent States (CIS) and Georgia**: Projected growth of 2.1%.

The UN report calls for enhanced global coordination and collective action to address challenges such as trade restructuring, price pressures, and climate impacts. It underscores the importance of rebuilding trust, improving predictability, and reaffirming commitments to an open, rules-based multilateral trading system.