UN forecasts slower global economic growth following Trump’s tariffs and trade tensions

By EDITH M LEDERER UNITED NATIONS AP The United Nations on Thursday forecast slower global economic progress this year and next pointing to the impact of the surge in U S tariffs and increasing transaction tensions U N 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 disclosed Shantanu Mukherjee director of the Economic Analysis and Initiative Division at the U N Department of Economic and Social Affairs It s been a nervous time for the global business sector he explained reporters while launching the midyear forecast In January this year we were expecting two years of stable if subpar expansion and since then prospects have diminished accompanied by crucial volatility across various dimensions The U N is now forecasting global economic rise of this year and next year a drop of percentage point each year from its projections in January Last year the global business sector grew Mukherjee explained the slowing is affecting preponderance countries and regions but among the preponderance severely hit are the poorest and least developed countries whose improvement prospects have fallen from to just since January That translates into a loss of billions in economic output for the greater part disadvantaged of countries which are home to over half the global population living in extreme poverty he stated The world s developed and emerging countries also are projected to suffer according to the U N document Economic upsurge in the United States is now projected to drop significantly from last year to this year it announced noting that higher tariffs and strategy uncertainty are expected to weigh on private stake and consumption China s rise is expected to slow to this year from in as a effect of subdued consumer sentiment disruptions in its export-oriented manufacturing companies and continuing challenges in its property sector the overview revealed The European Union s rise is forecast to remain the same this year as it was last year just the summary reported citing weaker net exports and higher transaction obstructions The United Kingdom s economic upsurge of last year is projected to fall to Weakening commerce slowing investments and falling commodity prices are also forecast to erode expansion in other major advancing economies including Brazil Mexico and South Africa India will remain one of the world s fastest-growing large economies but the U N forecast noted its development is expected to drop from in to this year The U N s global economic improvement forecast is lower than the International Monetary Fund s Related Articles New York ends paper routes for younger kids but the job has mostly faded away for teens Why was Elon Musk s AI chatbot Grok preoccupied with South Africa s racial politics Coinbase reported cyber crooks stole customer information and demanded million ransom payment US lost business travelers in April as economic anxiety and edge detentions cooled demand European Union accuses TikTok of breaching digital rules with lack of transparency on ads On a more positive note Mukherjee mentioned the U N is expecting that bilateral negotiations will lead to lower tariffs although he disclosed they won t return to the levels before U S President Donald Trump s February announcement Nonetheless Mukherjee stated resolving uncertainties would help individuals and businesses move forward with economic decisions and that would have a positive impact on the global financial sector