Global Economic Growth Set to Decelerate, According to UN Projections

UNITED NATIONS — On May 15,the U.N. released a forecast indicating that global economic growth is set to slow down this year and next due to rising U.S. tariffs and escalating trade tensions.

The report also pointed out the unpredictable geopolitical climate, potential increases in production costs, disruptions in supply chains, and financial instability as contributing factors.

“There’s a lot of uncertainty swirling around,” remarked Shantanu Mukherjee, who heads the Economic analysis and Policy Division at the U.N.’s Department of Economic and Social Affairs.

The global economy is projected to decelerate from a growth rate of 2.9% in 2024 to just 2.4% in 2025. @UNDESA’s latest #WorldEconomyReport warns that ongoing trade disputes & policy unpredictability could disrupt supply chains and hinder investments. https://t.co/QS3oYRJafF pic.twitter.com/ZUgb72KuYr — United Nations (@UN) May 15, 2025

the new projections show an anticipated global growth rate of only 2.4% for this year—down from earlier estimates by half a percentage point—and slightly better at just 2.5% for next year compared to last year’s figure of 2.9%.

Mukherjee noted that nearly all regions are feeling the pinch; however, developing nations are facing particularly tough times with their growth outlook dropping from an expected rate of 4.6% to just about 4.1%. “This translates into billions lost for countries already struggling,” he added.

This situation is dire for many nations where over half the population lives under extreme poverty conditions.

The report indicates that both developed economies like those in Europe as well as emerging markets will experience setbacks due to these trends.

The forecast suggests significant declines for economic performance within the United States—from last year’s growth rate of about 2.8% down to 1.6%. This downturn can be attributed largely to increased tariffs alongside uncertainties surrounding policies affecting private investment levels.

China’s economy is also expected to cool off slightly with projections showing a drop from 5% last year down to 4.6%, primarily driven by lackluster consumer confidence along with challenges faced by its manufacturing sector amid property market issues.

The European Union’s anticipated growth remains stagnant at around 1%, while forecasts indicate that Britain’s economy may dip further—from 1.1% last year down towards 0.9%. weakening trade dynamics coupled with higher barriers have been cited as key reasons behind these figures.

Additionally, major developing economies such as Brazil or South Africa are likely experiencing similar struggles due largely because falling commodity prices combined with reduced investments will continue eroding their overall economic health.

On a brighter note tho—India still stands out among large economies maintaining rapid expansion rates despite seeing its own forecast decline slightly—from an notable 7 .1 % previously predicted down now closer towards approximately 6 .3 % this upcoming fiscal period.

This latest outlook falls short when compared against predictions made by organizations like The International Monetary Fund (IMF).

Mukherjee did express some optimism regarding potential bilateral negotiations aimed at reducing tariffs moving forward—even if they might not revert back entirely pre-Trump era levels anytime soon!

If uncertainties can be resolved effectively it would empower individuals & businesses alike enabling them make informed decisions which ultimately could foster positive impacts across our interconnected world economy!