The United Nations expects the global economy to grow by 2.7% in 2026

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New York, January 9, 2020: The United Nations expected that global economic output would grow by 2.7% in 2026, compared to 2.8% in 2025, and at a level much lower than the pre-Covid-19 pandemic average of 3.2%.

The “Global Economic Situation and Prospects for 2026” report, issued today, Thursday, by the United Nations Department of Economic and Social Affairs, explained that the unexpected resilience of the global economy in the face of sharp increases in US customs duties, supported by strong consumer spending and declining inflation rates, contributed to continued growth. However, it warned of structural weaknesses, most notably weak investment and tight fiscal space, which may establish a slower growth path compared to the pre-pandemic period.

The report stated that the partial easing of trade tensions contributed to reducing disruptions in international trade, but it is likely that the impact of high tariffs, in conjunction with the escalation of macroeconomic uncertainty, will become more evident during 2026.

He pointed to the improvement in global financial conditions supported by monetary easing and improved sentiment, with risks remaining high as a result of rising valuations, especially in sectors associated with rapid developments in the field of artificial intelligence, while high debt and high borrowing costs continue to restrict policy options in many developing economies.

The report expected that the US economy will grow by 2.0% this year, compared to 1.9% in 2025, with the weakness of the labor market likely to contribute to slowing the pace of growth. It is also expected that the East Asian economy will grow by 4.4% (compared to 4.9% in 2025), and the Chinese economy by 4.6%, a slight decrease from the previous year, while Africa is expected to achieve growth of 4.0% (compared to 3.9% in 2025), in light of debt risks and climate change shocks. As for West Asia, growth is expected to rise to 4.1% (compared to 3.4% in 2025), while continuing to be affected by geopolitical tensions and security risks.

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