Will Trade Wars & Fiscal Austerity Derail Global Growth?

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Unless global coordination improves & fiscal priorities are realigned toward inclusive development, the world may not just flirt with recession but plunge into a prolonged downturn.

The global economy stands at a precarious crossroads. Despite pockets of resilience in 2024, early signs in 2025 suggest that the momentum was short-lived and possibly misleading.

A comprehensive analysis from the United Nations Conference on Trade and Development (UNCTAD), titled Trade and Development Foresights 2025: Under Pressure, outlines a sobering trajectory: the world economy is slowing down, and the risk of a global recession is mounting. With global GDP projected to grow at only 2.3 per cent, falling below the 2.5 per cent recession threshold, the report warns that systemic fragilities are becoming harder to ignore.



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