"Experts warn that higher tariffs, particularly in the United States, are disrupting supply chains, inflating production costs, and delaying critical investment decisions, all while fueling financial market volatility," the UN said.

Global economic growth is now projected to slow to 2.4% in 2025, down from 2.9% in 2024, marking a 0.4 percentage point decline from initial forecasts. The downturn is widespread, affecting both developed and developing economies, as weakening trade and investment flows compound the slowdown.  

"Trade-reliant developing nations are among those hardest hit, struggling with reduced exports, lower commodity prices, tighter financial conditions, and rising debt burdens," the statement read.

Economic Analysts fear that these challenges could further restrict economic opportunities across Africa and other emerging markets.  

While inflation is easing globally, new risks are emerging from tariff-driven cost pressures and market uncertainty.

"Economists argue that addressing these challenges requires a combination of monetary policy adjustments, fiscal measures, supply-side reforms, and industrial strategies to stabilise prices and strengthen economic resilience," UN said.

The deteriorating global outlook is also threatening progress toward the Sustainable Development Goals, with many targets already off track.

Slower growth and persistent cost-of-living pressures are exacerbating inequalities, disproportionately affecting low-income households and vulnerable populations. Meanwhile, sustained weakness in global investment growth continues to undermine long-term economic prospects.  

--United Nations/ChannelAfrica--