UN agencies: Geopolitical tensions test global economic resilience
Geneva, May 20 (Xinhua) -- The United Nations Conference on Trade and Development (UNCTAD) released a report on May 19 stating that the global economy has shown some resilience this year, supported by trade, industrial production in developing economies, and investment in artificial intelligence. However, the escalating geopolitical tensions are testing this momentum.
The report predicts that global economic growth will slow down from 2.9% in 2025 to 2.6% in 2026 due to factors such as rising energy prices, transportation disruptions, market volatility, and increased demand for financial safe haven assets. The risks faced by developing economies are particularly prominent, as many countries not only need to cope with rising costs of fuel, food, and fertilizers, but also face challenges such as exchange rate fluctuations, tightening financing conditions, and weak investor confidence.
The report shows that global trade in goods remained relatively strong at the beginning of this year, but growth was mainly concentrated in areas related to artificial intelligence such as semiconductors, servers, and data processing equipment. Outside of these areas, trade growth remains slow, particularly evident in traditional industries and commodity related sectors.
The report also points out that the pressure on global food security is constantly increasing. The rise in energy prices has pushed up fertilizer costs and exacerbated food inflation pressures in many developing economies.
The United Nations Conference on Trade and Development warns that the global economy is shifting from the initial stage of supply disruptions and inflation shocks to a more fragile period, where long-term uncertainty may lead to material shortages and broader financial pressures. The organization calls for strengthening international cooperation, establishing a more predictable trade environment, providing stronger financial security for developing economies, and accelerating investment in clean energy to stabilize growth and reduce future risks.