KEY POINTS
- UN Trade and Development projects global economic growth of 2.6 per cent in 2026, down from 2.9 per cent in 2025.
- Developing economies are expected to grow by four per cent, compared with 4.7 per cent last year.
- Official development assistance is projected to fall by almost seven per cent in 2026.
- The UN agency urges greater investment in productive industries and stronger regional economic cooperation.
MAIN STORY
The United Nations has projected global economic growth to slow to 2.6 per cent in 2026, warning that financial pressures and unequal access to technology could deepen the development gap between rich and poor countries.
UN Trade and Development, also known as UNCTAD, disclosed this in its Trade and Development Report 2026, released in Geneva on Friday.
The forecast represents a decline from the 2.9 per cent global growth recorded in 2025. Developing economies are expected to experience a sharper slowdown, with growth projected at four per cent, down from 4.7 per cent last year.
UNCTAD attributed the weaker outlook partly to geopolitical tensions, rising energy costs, financial instability and changes in international trade policies.
The agency also warned that developing countries face growing difficulties accessing advanced technologies, attracting investment and moving into higher-value manufacturing activities.
Official development assistance is projected to decline by almost seven per cent in 2026, marking another setback for poorer countries that depend partly on external support to finance development programmes.
To address these pressures, UNCTAD called for stronger regional economic integration, greater investment in productive industries and international cooperation to reduce widening development inequalities.
THE ISSUES
Slower global growth could constrain job creation, investment and income growth in developing economies. For countries already facing financing constraints and high production costs, a weaker international economy could make it harder to expand industries and improve living standards.
The technology gap presents another challenge. Countries with limited access to advanced technologies risk missing opportunities in higher-value manufacturing and emerging industries, while economies with greater technological capabilities are better positioned to capture those gains.
The projected decline in official development assistance could add to the pressure by reducing external funding available to support development priorities. The consequences will depend on how individual countries finance public programmes and attract alternative sources of investment.
For Nigeria, the report’s concerns are relevant to efforts to diversify the economy, expand manufacturing and attract investment into productive sectors. Stronger regional trade and greater domestic productive capacity could help businesses access wider markets and reduce dependence on a narrow range of economic activities. These are potential implications of the report’s findings, rather than Nigeria-specific forecasts by UNCTAD.
WHAT’S NEXT
UNCTAD has called for stronger regional economic integration, investment in productive industries and international cooperation. The supplied report summary does not specify implementation deadlines or new funding commitments attached to these recommendations.
BOTTOM LINE
The UN expects global growth to slow in 2026 as developing economies face weaker expansion and persistent barriers to technology and finance. It is calling for greater investment in productive industries and stronger regional cooperation to support development.
Source: UN Trade and Development, Trade and Development Report 2026.
