UN's World Economic Situation and Prospects Report 2026
Context:
The United Nations Department of Economic and Social Affairs (UN DESA) has released its flagship World Economic Situation and Prospects 2026 report.
Global Economy Highlights:
The report estimates the world economy will expand by 2.8% in 2025 (40 basis points faster than previously anticipated).
The forecast for 2026 has been upgraded to 2.7%.
Despite the upgrade, growth in 2027 (projected at 2.9%) is expected to remain lower than the pre-pandemic average of 3.2% (2010–2019).
The report warns the world could settle into a "persistently slower growth path."
Military vs. Social Spending:
Global military expenditure rose to $2.7 trillion in 2024, the steepest annual increase since 1988.
UN Secretary-General António Guterres warned that this diverts scarce resources from social spending and development.
Key challenges include:
Strategic rivalries eroding multilateralism
High debt levels
Subdued investment
Heated competition for critical minerals.
About UN DESA:
UN DESA is not an independent UN Agency, but it is a Department of the United Nations Secretariat, functioning directly under the UN Secretary-General.
UN DESA’s work is rooted in the UN Charter, guided by the 2030 Agenda for Sustainable Development and other major global agreements.
The Department of Economic and Social Affairs is a vital interface between global policies in the economic, social, and environmental spheres and national action.