1 hr ago
UN Warns Developing-Economy Growth Is Splitting as Asian Economies Lead
The UN says the world economy will grow more slowly in 2026 and 2027 than it did in 2025.
Developing countries are not all growing at the same pace.
India, Indonesia and China are expected to grow relatively quickly.
Many other developing economies have lagged behind their growth rates from the mid-2010s.
India’s growth is helped by people buying things, more manufacturing and government infrastructure projects.
But rising prices and costs are slowing household spending.
Higher borrowing costs and inflation are also weighing on economies around the world.
Trade is still expected to grow, partly because of demand for equipment used in AI data centres.
Global growth is forecast to slow from 2.9% in 2025 to 2.6% in 2026 and 2.7% in 2027.
Developing-economy growth is projected to ease from 4.7% in 2025 to 4% in 2026, with wide differences between countries.
India, Indonesia and China are forecast to grow by 7.3%, 5.2% and 4.5%, respectively, in 2026.
India’s growth is supported by domestic demand, expanding manufacturing capacity and public infrastructure programmes, while higher prices and input costs are slowing consumption.
Global trade grew 4.4% in real terms in 2025 and is expected to expand about 4% in 2026; AI-related computing equipment has been a major driver of goods trade.
- Who
- The United Nations Conference on Trade and Development (UNCTAD), reporting on global and developing-economy growth.
- What
- UNCTAD forecasts slower global growth and describes a widening gap between faster-growing Asian economies and many other developing economies.
- Where
- Globally, with India, Indonesia and China identified as fast-growing economies.
- When
- The forecasts cover 2026 and 2027, with comparisons to 2025 and the mid-2010s.
- Why
- Inflation, tighter monetary policy and higher borrowing costs are weighing on consumption, investment and trade; energy dependence and debt-service costs add pressure for some economies.
Key facts
- Global growth forecast, 2026
- 2.6%, down from 2.9% in 2025
- Global growth forecast, 2027
- 2.7%
- Developing-economy growth forecast, 2026
- 4%, down from 4.7% in 2025
- India growth forecast
- 7.3% in 2026 and 6.8% in 2027
- Indonesia growth forecast, 2026
- 5.2%
- China growth forecast, 2026
- 4.5%
- Real global trade growth
- 4.4% in 2025; about 4% forecast for 2026










