The global economic outlook has worsened significantly since the January 2025 forecast. Higher tariffs and trade policy uncertainty are expected to strain supply chains, raise production costs, and prompt businesses to delay or scale back investments.

A sudden escalation of trade tensions has sent shockwaves through the global economy, dampening growth prospects while fueling uncertainty and inducing financial market volatility.

In the second CDP Issue Brief, Sabina Alkire discusses the potential of data for poverty eradication and the opportunities for WSSD2 to act on that potential.

Geopolitical fragmentation, trade barriers, and climate change portend recurrent supply-side shocks, fuelling unpredictable inflationary pressures. These disruptions are increasing uncertainty and volatility, which complicate investment decisions and economic policymaking.

In the first number of the new CDP Issue Brief Series, Carlos Lopes looks at the challenges confronting global trade in 2025.

The near-term global trade outlook is fraught with uncertainties amid new tariffs and other trade restrictions. While recent history demonstrates that the global trading system is resilient, often adapting by finding alternative channels for sustaining commerce, policy uncertainty could hinder this process by discouraging necessary investments.

The world economy has shown resilience despite multiple shocks, but the outlook remains uncertain due to ongoing conflicts, geopolitical and trade tensions, climate risks, and mounting fiscal pressures.

Global growth to remain subdued amid lingering uncertainty. Lower inflation and monetary easing offer relief, but trade tensions, high debt burdens, and geopolitical risks cloud the outlook

Economic growth in landlocked developing countries (LLDCs) is expected to be steady in the near term but remains well below the average in the pre-pandemic decade. Substantial downside risks remain, including commodity price volatility, debt challenges, climate disasters and geopolitical tensions.