According to the latest U.N. Trade and Development Report, global economic sentiment remains negative. Output growth is still slowing, and the dominant trend is prolonged uncertainty as economies struggle to adjust to shifting external conditions. The report warns that global growth shows no sign of a quick recovery, and in fact the slowdown will likely erase part of 2025’s early momentum, when imports spiked in anticipation of new tariffs. It also underscores a widening gap between global trade and global finance, a sign of deeper structural imbalances.
At the same time, the report highlights indicators that the global economy is transforming. For example, it cites the rising weight of the Global South in trade and in contributions to global output growth. It also notes countries’ push to diversify export markets and production through deeper regional integration to reduce exposure to policy-driven trade disruptions.
