UN forecasts slower global growth ahead

The United Nations (UN) has forecast slower global economic growth this year and next, pointing to the impact of the surge in United States (US) tariffs and increasing trade tensions.

- BY THE ASSOCIATED PRESS

UN economists also cited the volatile geopolitical landscape and threats of rising production costs, supply chain disruptions and financial turbulence.

"These days, there's so much uncertainty in the air," said Shantanu Mukherjee, director of the economic analysis and policy division at the UN Department of Economic and Social Affairs (DESA).

"It's been a nervous time for the global economy," he told reporters on Thursday, May 15, while launching the midyear forecast.

"In January this year, we were expecting two years of stable—if subpar—growth, and since then, prospects have diminished, accompanied by significant volatility across various dimensions."

The UN is now forecasting global economic growth of 2.4 percent this year and 2.5 percent next year—a drop of 0.4 percentage point (ppt) each year from its projections in January.

Last year, the global economy grew 2.9 percent.