{"id":1300,"date":"2026-01-07T21:07:52","date_gmt":"2026-01-07T21:07:52","guid":{"rendered":"https:\/\/www.brhrd.be\/?p=1300"},"modified":"2026-01-17T21:15:56","modified_gmt":"2026-01-17T21:15:56","slug":"global-economy-shows-resilience-but-growth-remains-subdued-un-report-finds","status":"publish","type":"post","link":"https:\/\/www.brhrd.be\/?p=1300","title":{"rendered":"Global Economy Shows Resilience but Growth Remains Subdued, UN Report Finds"},"content":{"rendered":"\n<p>The global economy has shown notable resilience over the past year despite trade tensions, shifting policies, and geopolitical uncertainty. However, growth remains <strong>weak and well below pre-pandemic levels<\/strong>, according to the UN\u2019s flagship <strong>World Economic Situation and Prospects 2026<\/strong> report, released on Thursday.<\/p>\n\n\n\n<p>The report projects <strong>global economic growth of 2.7 per cent in 2026<\/strong>, slightly below the <strong>2.8 per cent recorded in 2025<\/strong> and far under the <strong>pre-pandemic average of 3.2 per cent<\/strong>.<\/p>\n\n\n\n<p>While the sharp rise in <strong>United States tariffs<\/strong> created new trade frictions, the absence of broader escalation helped prevent major disruptions to global commerce, the report noted.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Resilience masks deeper vulnerabilities<\/strong><\/h3>\n\n\n\n<p>Short-term resilience has been supported by <strong>solid consumer spending, easing inflation, and looser financial conditions<\/strong>. Yet the UN warns that <strong>structural weaknesses<\/strong> persist.<\/p>\n\n\n\n<p>Low investment levels, tight fiscal space, and elevated uncertainty could lock the global economy into a <strong>prolonged period of slower growth<\/strong> than before the COVID-19 pandemic.<\/p>\n\n\n\n<p>Although trade tensions have eased somewhat, the <strong>full impact of higher tariffs<\/strong> and macroeconomic uncertainty is expected to become more visible in 2026.<\/p>\n\n\n\n<p>Financial conditions have improved due to monetary easing, but risks remain high\u2014particularly from <strong>elevated asset prices<\/strong>, especially in sectors linked to rapid advances in <strong>artificial intelligence (AI)<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Developing countries under pressure<\/strong><\/h3>\n\n\n\n<p>High debt levels and borrowing costs continue to constrain many developing economies.<\/p>\n\n\n\n<p>UN Secretary-General <strong>Ant\u00f3nio Guterres<\/strong> warned that:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA combination of economic, geopolitical and technological tensions is reshaping the global landscape, generating new economic uncertainty and social vulnerabilities.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>He cautioned that many developing countries are still struggling, putting progress toward the <strong>Sustainable Development Goals (SDGs)<\/strong> at serious risk.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Uneven regional outlook<\/strong><\/h3>\n\n\n\n<p>The report highlights significant regional disparities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>United States:<\/strong> Growth projected at <strong>2.0%<\/strong> in 2026 (up from 1.9% in 2025), supported by monetary and fiscal easing, though labour-market softening may weigh on momentum.<\/li>\n\n\n\n<li><strong>European Union:<\/strong> Growth expected at <strong>1.3%<\/strong>, down from 1.5%, as higher US tariffs and geopolitical uncertainty weaken exports.<\/li>\n\n\n\n<li><strong>East Asia:<\/strong> Growth projected at <strong>4.4%<\/strong>, down from 4.9%, with China expected to grow <strong>4.6%<\/strong>, supported by targeted policy measures.<\/li>\n\n\n\n<li><strong>South Asia:<\/strong> Growth forecast at <strong>5.6%<\/strong>, led by <strong>India\u2019s 6.6% expansion<\/strong>, driven by strong consumption and public investment.<\/li>\n\n\n\n<li><strong>Africa:<\/strong> Output projected at <strong>4.0%<\/strong>, a slight improvement, but debt and climate shocks remain major risks.<\/li>\n\n\n\n<li><strong>Latin America &amp; Caribbean:<\/strong> Growth expected at <strong>2.3%<\/strong>, reflecting moderate consumer demand and cautious investment recovery.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Trade slows as uncertainties persist<\/strong><\/h3>\n\n\n\n<p>Global trade expanded by a stronger-than-expected <strong>3.8 per cent in 2025<\/strong>, driven by early shipment front-loading and robust services trade. However, momentum is expected to slow, with trade growth projected at <strong>2.2 per cent in 2026<\/strong>.<\/p>\n\n\n\n<p>Investment remains subdued across most regions due to geopolitical tensions and limited fiscal capacity, though AI-driven capital spending has boosted investment in some large economies.<\/p>\n\n\n\n<p>The report cautions that AI-related gains may be <strong>unevenly distributed<\/strong>, potentially widening existing inequalities.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>High prices still hurting the vulnerable<\/strong><\/h3>\n\n\n\n<p>While inflation continues to decline globally, high prices remain a major challenge.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Headline inflation<\/strong> fell from <strong>4.0% in 2024<\/strong> to <strong>3.4% in 2025<\/strong><\/li>\n\n\n\n<li>It is projected to ease further to <strong>3.1% in 2026<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Despite this trend, <strong>Junhua Li<\/strong>, UN Under-Secretary-General for Economic and Social Affairs, warned:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEven as inflation recedes, high and still rising prices continue to erode the purchasing power of the most vulnerable.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>He stressed the need to protect essential spending, strengthen competition, and address the structural causes of recurring price shocks.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Call for coordinated global action<\/strong><\/h3>\n\n\n\n<p>The report urges stronger international coordination to address trade realignments, persistent inflation pressures, debt vulnerabilities, and climate-related shocks.<\/p>\n\n\n\n<p>It highlights that <strong>poorer countries, landlocked developing States, and small island developing States<\/strong> remain especially constrained and require greater international support.<\/p>\n\n\n\n<p>As a roadmap, the report points to the <strong>Sevilla Commitment<\/strong>, adopted at the Fourth International Conference on Financing for Development, as a blueprint for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reforming the global financial architecture<\/li>\n\n\n\n<li>Scaling up development finance<\/li>\n\n\n\n<li>Strengthening multilateral cooperation<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The global economy has shown notable resilience over the past year despite trade tensions, shifting policies, and geopolitical uncertainty. However, growth remains weak and well below pre-pandemic levels, according to the UN\u2019s flagship World Economic Situation and Prospects 2026 report, released on Thursday. The report projects global economic growth of 2.7 per cent in 2026, [&hellip;]\n","protected":false},"author":2,"featured_media":1301,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,68],"tags":[],"class_list":["post-1300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-development","category-topics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Global Economy Shows Resilience but Growth Remains Subdued, UN Report Finds - Brussels for Human Rights and development<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.brhrd.be\/?p=1300\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Global Economy Shows Resilience but Growth Remains Subdued, UN Report Finds - Brussels for Human Rights and development\" \/>\n<meta property=\"og:description\" content=\"The global economy has shown notable resilience over the past year despite trade tensions, shifting policies, and geopolitical uncertainty. 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