Wednesday 3 December 2025 – 15:13
Global growth is set to slow to 2.6 percent in 2025 from 2.9 percent in 2024 as trade and investment face pressure from financial volatility and geopolitical tension, UN Trade and Development said in a report released Tuesday.
The report says financial conditions now shape global commerce almost as much as real economic activity, with interest rates liquidity and investor sentiment driving trade flows.
UN Trade and Development chief Rebeca Grynspan said trade should not be seen only as supply chains but as networks of credit payments currencies and capital.
World trade rose about 4 percent at the start of 2025 as firms rushed imports ahead of tariff changes, alongside faster growth in services digital trade and South South exchanges.
Underlying trade growth is projected at 2.5 to 3 percent and is expected to slow as financing tightens.
The report warned that over 90 percent of world trade depends on bank finance, leaving developing economies exposed to higher costs and weaker access to credit.
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