U.N. Forecast Warns of Sluggish Global Economic Growth Amid Trade Tensions

The United Nations has revised its global economic growth forecast downwards, warning that higher tariffs and trade tensions, particularly those involving the U.S., are stifling growth. U.N. economists highlight geopolitical volatility and disruptions in the supply chain as prime contributors to the decelerating growth.

The organization's projections now estimate a decline in global GDP growth to 2.4% this year and 2.5% next year, down from previous estimates and significantly affecting economies worldwide. Notably, poorer countries, which constitute a large segment of the population living in extreme poverty, are projected to see growth prospects diminish from 4.6% to 4.1%.

In both developed and developing regions, economies face headwinds—ranging from decreased U.S. growth, driven by tariff uncertainties, to China's cooling consumer sentiment affecting its export-oriented sectors. Poised to cushion this bleak outlook, bilateral efforts towards tariff reductions could offer hope by alleviating some pressures on global economic activities.

(With inputs from agencies.)