Shafaq News/ On Friday, the United Nations revised its global economic forecast downward, warning that ongoing financial and geopolitical strains are undermining prospects for a full recovery in the coming years.

In its mid-2025 update of the World Economic Situation and Prospects report, the UN projected global GDP growth to slow to 2.4% in 2025—down from 2.9% in 2024 and 0.4 percentage points below its previous estimate issued in January.

Shantanu Mukherjee, Director of the UN’s Economic Analysis and Policy Division, described the international outlook as increasingly fragile, citing a convergence of destabilizing factors including escalating trade tensions, rising US tariffs, persistent supply chain disruptions, elevated production costs, and heightened financial market volatility.

Addressing reporters during a press briefing, Mukherjee also cautioned that initial signs of stabilization earlier this year have faded, eroding both business and consumer confidence. “There’s been a notable weakening across key economic indicators.”

The report highlighted that low-income and least developed countries are expected to bear the brunt of the slowdown. Growth in those economies is now projected at 4.1%, a downgrade from January’s forecast of 4.6%, as inflation surges, debt levels rise, and access to global capital markets remains constrained.

Meanwhile, both developed and emerging economies are facing stiff headwinds, including tight monetary policy and weaker global trade.