emirates7 - The United Nations Conference on Trade and Development (UNCTAD) has projected global economic growth to slow from 2.9 percent in 2025 to 2.6 percent in 2026, warning that geopolitical risks have become the primary source of instability in the global economy.

According to the organisation's report, titled "Trade and Development Foresights 2026: Global economy faces a geopolitical challenge," developing economies remain the most vulnerable to pressures resulting from high energy, food, and fertiliser prices, alongside transport disruptions, market volatility, and tightening financing conditions.

The report noted that global trade maintained some momentum during early 2026, driven by artificial intelligence-related products, while growth in traditional sectors remained more modest amid escalating pressures on global food systems and rising food security risks.

UNCTAD called for strengthening international cooperation, improving trade conditions, increasing financial safeguards for developing economies, and accelerating investment in renewable and clean energy to enhance resilience and mitigate the impact of future shocks.