Global economic growth is projected to slow to 2.6% in 2026 from 2.9% in 2025, as geopolitical tensions, higher energy costs and financial instability impacted the world economy, according to the United Nations Conference on Trade and Development’s (UNCTAD) Trade and Development Report 2026. The slowdown comes even as global trade in goods and services is expected to expand by about 4% at constant prices this year. However, rising trade values do not necessarily indicate a similar increase in the volume of goods traded, as higher prices, particularly for energy, are driving much of the recent growth in nominal trade.