World economic growth is projected to slow to 2.4 percent in 2025, down from 2.9 percent in 2024, due to heightened trade tensions and policy uncertainty, according to a mid-year update of the 2025 World Economic Situation and Prospects report of the United Nations, which was released on Thursday.
The latest global economy forecast is 0.4 percentage points below the January forecast.
The global economic outlook has deteriorated significantly since the January 2025 forecast. Sweeping United States tariff announcements and counter-announcements, along with heightened policy uncertainty have eroded global growth prospects, said the UN report.
In terms of international trade, global trade growth is projected to decline sharply from 3.3 percent in 2024 to 1.6 percent in 2025, said the report.
The economic slowdown and persistent weakness in global investment growth will drag down employment and wage growth, according to the report.
The report also emphasized that policy coordination and international cooperation are particularly crucial for stabilizing the global economy and promoting sustainable development as the current world economy is facing high uncertainty.
UN forecasts global economic growth to slow to 2.4 pct in 2025
UN forecasts global economic growth to slow to 2.4 pct in 2025
UN forecasts global economic growth to slow to 2.4 pct in 2025
UN forecasts global economic growth to slow to 2.4 pct in 2025
U.S. stocks ended lower on Friday, pulling back from record highs set a day earlier, after U.S. President Donald Trump announced a new 35 percent tariff on goods imported from Canada and warned of even broader tariff hikes.
The Dow Jones Industrial Average fell by 279.13 points, or 0.63 percent, to 44,371.51. The Standard and Poor's 500 sank 20.71 points, or 0.33 percent, to 6,259.75. The Nasdaq Composite Index shed 45.14 points, or 0.22 percent, to 20,585.53.
Nine of the 11 primary Standard and Poor's 500 sectors ended in red, with financials and health leading the laggards by losing 1.00 percent and 0.88 percent, respectively. Energy and consumer discretionary led the gainers by going up 0.48 percent and 0.33 percent, respectively.
Trump justified the higher duties on Canada by citing fentanyl concerns and warned the tariffs could go even higher if Canada retaliates.
In an interview with NBC News, the president said he is considering blanket tariffs of 15 percent to 20 percent on all remaining U.S. trading partners, which is significantly above the 10 percent level investors had largely come to expect.
Markets are also watching for further trade developments, particularly with the European Union. While traders anticipate an update from Trump on EU negotiations, it is unclear whether he will impose new tariffs, as he did with Canada, or simply signal progress in ongoing deal talks.
The tech sector, which has helped propel the market to recent highs, was mixed on Friday.
Nvidia shares rose 0.5 percent, extending gains after the artificial intelligence chipmaker became the first company ever to close with a market cap above 4 trillion U.S. dollars.
Amazon added more than 1 percent as its Prime Day sales event wrapped up, while Tesla and Alphabet also climbed more than 1 percent.
Microsoft ticked higher, while Apple and Broadcom edged lower.
Meta Platforms fell 1.34 percent on Friday, one day after reports surfaced that the company had offered a compensation package exceeding 200 million dollars in an attempt to lure away Apple's top executive overseeing artificial intelligence models.
Bond markets reacted to the tariff developments as well, with the yield on the 10-year Treasury note rising to 4.42 percent from 4.35 percent at Thursday's close, reflecting increased uncertainty about inflation and interest rate policy.
Looking ahead, investors will turn their attention to next week's start of the second-quarter earnings season and key inflation data releases, both of which could shape the Federal Reserve's next moves.
U.S. stocks close lower to end week
