Video Message
8 January 2026, UNIC New Delhi
9 January 2026, Bangkok (ESCAP)
13 January 2026, UNIC Mexico (ECLAC)
19 January 2025, Addis Ababa (ECA)
20 January 2026, UNIC Moscow
It is a privilege to join you on the launch of UN DESA¡¯s flagship report, the World Economic Situation and Prospects 2026!
In 2025, despite sharp tariff spikes that unsettled trade, the global economy displayed remarkable resilience.
The outlook for the world economy today is broadly stable; economic growth is expected to moderate from 2.8 per cent in 2025 to 2.7 per cent in 2026, before picking up to 2.9 per cent in 2027.
But this figure remains below the pre-pandemic average of 3.2%.
Inflation across the world is easing, with global headline inflation at 3.4 per cent in 2025 and projected near 3.1 per cent in 2026.
Yet, wages are lagging, and unaffordable prices continue to squeeze household budgets, disproportionately burdening low- and middle-income families.
While global growth prospects are relatively steady, significant headwinds remain. Geopolitical fragmentation, trade restrictions, policy uncertainty, and climate change pose significant near-term risks.
In many countries, high debt and tight public budgets are limiting essential public investments, further increasing vulnerabilities.
Global trade, a vital engine of development, is expected to lose momentum, with growth slowing to just 2.2 per cent in 2026.
In labour markets, global unemployment rate is projected to decline slightly from 5 per cent in 2025 to 4.9 per cent in 2026. But gender gaps and youth unemployment remain major concerns.
Simultaneously, while artificial intelligence is driving economic gains in some areas, managing the AI transition will demand investment in skills, digital infrastructure, and inclusive policies.
Our report advocates for a balanced and forward-looking approach, with countries adopting a smarter policy mix.
? First, central banks need to keep inflation under control while maintaining flexibility to manage shocks. Clear communication and adequate safeguards will help maintain price stability without risking the health of the financial system.
? Second, government spending should be well-designed with targeted support for the vulnerable while protecting priority programmes. Credible medium-term plans, fairer tax systems, and more efficient spending are key to rebuilding public finances.
? Third, sectoral policies must address bottlenecks in food, energy, transport, and other critical areas. Investing in renewable energy, climate resilient agriculture, and low carbon technologies will secure supply chains, stabilize prices, and provide foundations for stronger economies and societies.
However, national efforts alone are insufficient; global challenges demand global solutions.
We must capitalize on the initiatives and momentum from 2025 that can provide the necessary boost. These include:
? The Sevilla Commitment made at the Fourth International Conference on Financing for Development, renewing momentum for financing for development.
? The Doha Political Declaration, adopted at the Second World Summit on Social Development, reaffirming our focus on poverty eradication, decent work, and social inclusion.
? The Bel¨¦m Package from COP30, pledging to triple adaptation finance by 2035 and launching a Just Transition Mechanism.
? And finally, efforts to revitalize the WTO and advance UN led AI governance to help keep markets open and innovation inclusive.
Our choices today can define tomorrow, in ensuring sustainable, resilient, and inclusive growth in the years ahead.
I encourage you to explore the World Economic Situation and Prospects 2026 for more detailed forecasts, insights, and recommendations.
Thank you.