Archive · 29 Nov 2025
UN Warns of Economic Challenges from Tariffs, Debt
The world economy is facing big problems.
Countries are putting high taxes on goods, which makes it hard for other countries to sell their products.
Many poor countries are also spending a lot of money to pay back their debts, leaving little for important things like schools and hospitals.
This is making life harder for people.
The UN says we need to fix these problems so that everyone can benefit from new technologies and trade.
Rising tariffs from major economies have increased from 2.8% to over 20%, creating uncertainty and slowing growth.
Developing countries paid a record $921 billion in interest in 2024, with 3.4 billion people living in countries spending more on debt than on health or education.
More than 50 developing economies spend at least 10% of their tax revenues on interest payments, forcing tough choices between paying creditors or investing in public services.
Artificial intelligence is projected to expand 25-fold in the next decade, but benefits are uneven, with only one-third of people in least developed countries online.
The UN calls for investment in infrastructure, data, and skills to make digital transformation a driver of development.
- Who
- UNCTAD Secretary-General Rebeca Grynspan and developing countries
- What
- Rising tariffs, record debt payments, and growing mistrust are slowing development
- When
- Current situation, with projections for the next decade
- Where
- Globally, with a focus on developing countries
- Why
- To highlight the economic challenges and the need for global initiatives to address them
- Average Tariffs
- 2.8% to over 20%
- People Affected by Debt
- 3.4 billion
- AI Growth Projection
- 25-fold in next decade
- Online Access in Least Developed Countries
- One-third of people
