GENEVA, April 16 (Xinhua) -- The world economy is on a recessionary trajectory, with global growth expected to slow to 2.3 percent in 2025 due to rising trade tensions and uncertainty, the United Nations Trade and Development (UNCTAD) said in a report released on Wednesday.
In its Trade and Development Foresights 2025 report, UNCTAD said that rising trade tensions are impacting global trade, adding that trade policy uncertainty is at a historical high, leading to delayed investment decisions and reduced hiring.
The organization expressed concern over the impact of the economic slowdown on developing countries, especially the most vulnerable economies.
However, UNCTAD underlined the growth of South-South trade, which accounts for about one third of global trade, as a source of resilience and a buffer against uncertainty.
The development of China has been promoting "a steady growth of South-South trade," the report said, adding that the potential of South-South economic integration offers opportunities for many developing countries.
