UN Warns Global Economy Risks Persistent Slow-Growth Path, Hobbled by Structural Woes and Trade Tensions

In January 2026, UN Under-Secretary-General for Economic and Social Affairs Li Junhua, citing the World Economic Situation and Prospects report, stated that global economic growth is estimated at 2.7% for 2026, remaining below the pre-pandemic average of 3.2%. He warned that without decisive policy steps, the global economy could settle into "a persistently slower growth path," a trend increasingly driven by deep-rooted structural constraints rather than cyclical weakness. Key pressures include sluggish foreign direct investment in developing countries, massive interest burdens from high public debt crowding out development spending, and the concentration of gains from technologies like artificial intelligence in a few large economies.

Renewed trade tensions pose a "key concern," while significant downside risks also stem from fiscal and financial vulnerabilities, potential overvaluation in global stock markets, and persistent inflation risks exacerbated by geopolitical fragmentation. The report underscores that reinvigorating multilateral cooperation is crucial to mobilize investment, enable broader technological participation, and address these interconnected challenges.