World economic growth to slow to 2.6% in 2026, UN trade body says

Business Recorder reported that the UN trade and development agency, UNCTAD, expects global economic growth to slow to 2.6% in 2026, versus 2.9% in the previous year. The agency linked the slowdown to an energy shock arising out of the conflict in the Middle East, which it said is testing the global economy. The findings were released on Friday.

Commerce in goods and services is anticipated to rise 4% at constant prices, even as 2025 set a record for world trade at $35 trillion. According to the report, that expected gain rests on higher energy costs. Bilateral trade between China and the United States has shrunk by over 20% since 2024, while East Asian economies have deepened commercial links with China and North America.

India is projected to grow 7.3%, China 4.5% and Indonesia 5.2%, while Asia overall is set to account for 59% of worldwide growth in 2026. The agency noted that AI products such as semiconductors lead merchandise trade, though that alone does not guarantee wide development gains. It also cautioned that rising reliance on a few firms exposes markets to financial stability risks, and it did not name any of them.