Which organisation warned that the global economic growth could slow to 2.3% in 2025 due to trade tensions?
The correct answer is UNCTAD (United Nations Conference on Trade and Development).
While several international financial institutions downgraded their forecasts in 2025, the specific warning that global growth would slow to 2.3% due to trade tensions and policy uncertainty was the centerpiece of the UNCTAD Trade and Development Report (April 2025).
Analysis of the UNCTAD Report
The report, titled "Trade and Development Foresight 2025," highlighted several critical factors leading to this slowdown:
Trade Policy Shocks: The primary driver was the escalation of reciprocal tariffs between major economies, which disrupted global value chains and increased the cost of doing business.
The "Recessionary" Threshold: UNCTAD noted that a growth rate of 2.3% falls below the 2.5% mark, which the organization traditionally considers a "recessionary phase" for the global economy.
Investment Paralysis: High levels of policy uncertainty led to a significant drop in private investment, as companies paused expansion plans due to the unpredictable trade environment.
Geoeconomic Fragmentation: The report warned that the world is moving toward "bloc-based" trade, which reduces efficiency and slows down the overall pace of global development.
Important Questions from International Organisations
The headquarters of the 'International Labour Organization' is located at ________.
In 1945 How many countries signed the charter of UNO?
As of Nov 2020, who is the Secretary General of the United Nations?
Which of the following organization is not an international body?
- Post 1991 economic reforms, India engaged more actively in global trade agreements.
Which organisation did India join in 1995 to boost global trade integration?
