United Nations report: Global economic prospects deteriorate, facing high uncertainty

The United Nations has released the Mid-Year Update on the Global Economic Situation and Prospects for 2025 report. The report indicates that since the predictions made in January 2025, the global economic outlook has significantly deteriorated. Higher tariffs and trade policy uncertainty have put pressure on supply chains, raised production costs, led to a slowdown in business investment, and affected both developed and developing economies. The report predicts that global economic growth will slow to 2.4% in 2025, a significant decline from the 2.9% growth in 2024. Developing countries with high dependence on trade are facing challenges such as reduced exports, falling commodity prices, tighter financing conditions, and increased debt burdens. The weak global growth also hinders the achievement of sustainable development goals, exacerbates poverty and inequality, and limits green transformation investment. In terms of international trade, global trade growth will plummet from 3.3% in 2024 to 1.6% in 2025. After a short-term boost to avoid tariffs, there is a possibility of a contraction in commodity trade in the second half of 2025. While digitalization is driving resilience in service trade, overall weak trade will impact demand for transportation, tourism, and other related services.