UN forecasts slower global economic growth following Trump’s tariffs and trade tensions

UNITED NATIONS AP The United Nations on Thursday forecast slower global economic upsurge this year and next pointing to the impact of the surge in U S tariffs and increasing transaction tensions U N economists also cited the volatile geopolitical landscape and threats of rising production costs supply chain disruptions and financial turbulence These days there s so much uncertainty in the air explained Shantanu Mukherjee director of the Economic Analysis and Strategy Division at the U N Department of Economic and Social Affairs It s been a nervous time for the global economic activity he narrated reporters while launching the midyear forecast In January this year we were expecting two years of stable if subpar enhancement and since then prospects have diminished accompanied by important volatility across various dimensions The U N is now forecasting global economic advancement of this year and next year a drop of percentage point each year from its projections in January Last year the global market system grew Mukherjee stated the slowing is affecting the bulk countries and regions but among the the greater part severely hit are the poorest and least developed countries whose development prospects have fallen from to just since January That translates into a loss of billions in economic output for the the majority disadvantaged of countries which are home to over half the global population living in extreme poverty he mentioned The world s developed and evolving countries also are projected to suffer according to the U N analysis Economic increase in the United States is now projected to drop significantly from last year to this year it revealed noting that higher tariffs and program uncertainty are expected to weigh on private funding and consumption China s progress is expected to slow to this year from in as a effect of subdued consumer sentiment disruptions in its export-oriented manufacturing companies and continuing challenges in its property sector the statement noted The European Union s increase is forecast to remain the same this year as it was last year just the document revealed citing weaker net exports and higher commerce barricades The United Kingdom s economic progress of last year is projected to fall to Weakening commerce slowing investments and falling commodity prices are also forecast to erode expansion in other major progressing economies including Brazil Mexico and South Africa India will remain one of the world s fastest-growing large economies but the U N forecast revealed its advance is expected to drop from in to this year The U N s global economic expansion forecast is lower than the International Monetary Fund s On a more positive note Mukherjee commented the U N is expecting that bilateral negotiations will lead to lower tariffs although he declared they won t return to the levels before U S President Donald Trump s February announcement Nonetheless Mukherjee commented resolving uncertainties would help individuals and businesses move forward with economic decisions and that would have a positive impact on the global financial market Source