According to an annual assessment of the United Nations, global economic growth will decline slightly in 2026 as tariffs under President Donald Trump would have a stronger effect and geopolitical uncertainties become widespread.

Nations worldwide are projected to grow 2.7 percent this year compared to an approximate 2.8 percent in 2025, the UN reported in its World Situation and Prospects study that appeared on 8th January. It is projected to revert to growth of 2.9 in 2027.

The global economy could withstand the shock of tariffs that Trump imposed on most US trading partners in April last year, but it will become more noticeable in 2026, the report states. It anticipates the growth in world trade, which is projected to be 3.8 percent in 2025, but will reduce to 2.2 percent this year.

Other risks the UN perceives, in addition to trade tensions, are geopolitical fights that may bring rates of growth down as a substitute for increased consumer spending and more stable labor markets.

“The world is undergoing a reshaping of the global environment due to a mix of economic, geopolitical, and technological tensions, creating novel economic uncertainties and social weaknesses,” Secretary-General António Guterres said in a statement.

It has taken several years since the pandemic, during which the world economy has grown at a slower pace, compared to the previous decade, with an average of 3.2.

The researchers predict that the US will be an exception to the overall forecast of a slowdown in this year, as they believe that the country will increase to 2% growth in 2026, up by 1.9% in 2025, but supported by the strategies of expansionary fiscal and monetary policies.

Other allies, such as the EU and Japan, will, however, experience their growth rate to be slightly lower, according to the UN. The US tariffs are primarily destined to slow growth in China to 4.6 per cent.