Overview of the UN Report on Global Economic Prospects
The United Nations has projected a decrease in global economic growth to 2.7% in 2026, down from 2.8% in 2025, before rising to 2.9% in 2027. This forecast is lower than the pre-COVID-19 average of 3.2% between 2010 and 2019.
Key Factors Affecting Global Economic Growth
The UN’s report, “Situación y Perspectivas para la Economía Mundial,” highlights that despite trade tensions caused by a significant increase in US tariffs in 2025, the absence of broader escalation has limited disruptions to international trade. The report attributes global economic resilience to advance shipments, inventory accumulation, and steady consumer spending amidst monetary easing and stable labor markets.
Regional Economic Growth Projections
United States
The UN anticipates that the US economic growth will slow to 1.9% in 2025 from 2.8% in 2024, and is expected to rise to 2% in 2026 and 2.2% in 2027, supported by expansive fiscal and monetary policies.
Inflation is projected to remain above the 2% target in 2026, though it should gradually moderate as tariff effects wane and housing costs stabilize.
China
China’s economic growth is forecasted to reach 4.6% in 2026 and 4.5% in 2027, compared to an estimated 4.9% expansion in 2025.
Temporary relief from trade tensions with the US, including selective tariff reductions and a one-year trade truce, has helped stabilize confidence. Internal demand is expected to be sustained by policy support.
European Union
The EU is projected to grow by 1.3% in 2026 and 1.6% in 2027, up from 1.5% in 2025, driven by resilient consumer spending.
However, rising US tariffs and geopolitical uncertainties may weigh on exports, according to the report.
South Asia
Growth is expected to moderate to 5.6% in 2026 from 5.9% in 2025, but is projected to return to 5.9% in 2027.
India
India’s growth is estimated at 7.4% for 2025, and projected to be 6.6% for 2026 and 6.7% for 2027, backed by steady consumption and robust public investment, which should largely offset the adverse effects of increased US tariffs.
Key Questions and Answers
- What is the UN’s global economic growth forecast for 2026? The UN projects a decrease to 2.7% in 2026, down from 2.8% in 2025.
- How does the US economic growth look according to the UN report? The US economic growth is expected to slow to 1.9% in 2025, rise to 2% in 2026, and further increase to 2.2% in 2027.
- What are China’s projected economic growth rates? China is expected to grow by 4.6% in 2026 and 4.5% in 2027.
- How does the EU’s economic growth fare in the UN report? The EU is projected to grow by 1.3% in 2026 and 1.6% in 2027.
- What are the growth projections for South Asia, specifically India? Growth in South Asia is expected to moderate to 5.6% in 2026 from 5.9% in 2025, but is projected to return to 5.9% in 2027. India’s growth is estimated at 7.4% for 2025, and projected to be 6.6% for 2026 and 6.7% for 2027.
