Global economic growth could slow to 2.3pc: UNCTAD

GENEVA, Apr 16 (Reuters): Global economic growth could slow to 2.3 per cent as trade tensions and uncertainty drive a recessionary trend, the UN Trade and Development (UNCTAD) agency said on Wednesday.

"Global growth is projected to slow to 2.3 per cent in 2025, placing the world economy on a recessionary path," UNCTAD said, citing a report it published on the trade and development outlook for this year.

The global economy grew 2.8 per cent in 2024, it said.

"This is a significant deceleration compared to the average annual growth rates registered in the pre-pandemic period, which itself was a period of subdued growth globally," the report said.

Trade uncertainties have rocked financial markets this month after US President Donald Trump announced sweeping tariffs on many countries on April 2.

Trump unexpectedly paused the higher duties on a dozen economies days later, but slapped even stiffer levies of 145 per cent on China.

UNCTAD said fears of recession in the US were growing as tariff concerns added to investor anxiety.