Global economic growth is expected to slow to 2.7% in 2026 from 2.8% last year, before rising modestly to 2.9% in 2027, the United Nations said on Thursday. Even with the uptick, growth would remain below the pre-pandemic average of 3.2% recorded between 2010 and 2019, reports Reuters.
In its World Economic Situation and Prospects report, the UN said a sharp increase in U.S. tariffs in 2025 generated new trade tensions, but the absence of wider escalation helped limit disruptions to international commerce.
“Despite the tariff shock, global economic activity proved resilient,” the UN Department of Economic and Social Affairs said, citing front-loaded shipments, inventory accumulation and solid consumer spending supported by monetary easing and broadly stable labor markets.
The report said continued macroeconomic policy support should cushion the impact of higher tariffs, though growth in trade and overall economic activity is likely to moderate in the near term.
Economic growth in the United States slowed to 1.9% in 2025 from 2.8% in 2024, but is forecast to edge up to 2.0% in 2026 and 2.2% in 2027, supported by expansionary fiscal and monetary policies. Inflation is expected to remain above the 2% target in 2026, though it should gradually ease as tariff effects fade and housing costs stabilize.
China’s economy is projected to grow by 4.6% in 2026 and 4.5% in 2027, down from an estimated 4.9% expansion in 2025. A temporary easing of trade tensions with the United States, including targeted tariff reductions and a one-year trade truce, has helped stabilize confidence, while policy support is expected to sustain domestic demand.
Growth in the European Union is forecast at 1.3% in 2026 and 1.6% in 2027, compared with 1.5% in 2025, supported by resilient consumer spending, though higher U.S. tariffs and geopolitical uncertainty are expected to weigh on exports.
In South Asia, growth is expected to moderate to 5.6% in 2026 from 5.9% in 2025, before returning to 5.9% in 2027. India’s economy is estimated to have grown 7.4% in 2025 and is forecast to expand by 6.6% in 2026 and 6.7% in 2027, supported by strong public investment and resilient consumption that should largely offset the impact of higher U.S. tariffs.
Bd-pratidin English/ Jisan
