The United Nations report: Global economic outlook deteriorates, facing high levels of uncertainty

The United Nations released the "2025 Mid-Year Update on Global Economic Situation and Prospects" report. The report pointed out that the global economic outlook has deteriorated significantly since the January 2025 forecast. Higher tariffs and trade policy uncertainty have put pressure on supply chains, driving up production costs, leading to a slowdown in business investment, affecting both developed and developing economies. The report forecasts that global economic growth will slow to 2.4% in 2025, a significant slowdown from the 2.9% growth rate in 2024. Developing countries that are more dependent on trade face multiple challenges such as declining exports, falling commodity prices, tightening financing conditions and increasing debt burdens. Weak global growth has also further hindered the achievement of the Sustainable Development Goals, exacerbated poverty and inequality, and restricted investment in the green transition. In terms of international trade, global trade growth will plunge from 3.3 per cent in 2024 to 1.6 per cent in 2025. Goods trade is likely to contract in the second half of 2025 after a short-term boost from tariff avoidance. While digitalisation is driving resilience in services trade, overall weakness in trade will hit demand for transport, tourism and other related services.