The United Nations Department of Economic and Social Affairs (UN DESA) has warned that the global economy is at a fragile turning point, citing escalating trade tensions, policy uncertainty, and tariff-driven inflation as key risks. In a report released on Thursday, UN DESA noted that higher tariffs are disrupting global supply chains, increasing production costs, and stalling investments — all contributing to a global economic slowdown.
🔹 United States: Growth expected to slow significantly due to rising tariffs and uncertain policies.
🔹 China: Projected to grow at 4.6% in 2025, down from 5.0% in 2024, amid weak consumer confidence and a troubled property market.
🔹 Brazil & Mexico: Also facing revised downward forecasts.
More than 20 developing countries are grappling with double-digit inflation, despite a global easing in headline inflation between 2023 and 2024. Food inflation remains especially high in Africa, South Asia, and Western Asia, averaging above 6%, disproportionately impacting low-income households.
UN Under-Secretary-General Li Junhua stressed that “tariff shocks” could hit developing nations hardest, calling for coordinated policies to stabilise prices and support vulnerable populations. With limited fiscal space, many developing countries face a tightrope walk between controlling inflation and supporting slowing economies — a threat to job creation, poverty reduction, and inequality efforts.
