According to the United Nations Conference on Trade and Development (UNCTAD), the global economy will grow weaker this year due to unrest over American President Donald Trump’s trade policy.
UNCTAD expects global growth of 2.3 percent this year, compared to 2.8 percent last year. However, this prediction is surrounded by many uncertainties.
UNCTAD says uncertainty is causing companies to be more cautious about investing and hiring staff. In addition, import restrictions and geopolitical tensions can disrupt supply chains and trade flows.
Concerns about a global trade war and recession have led to significant price drops on international stock exchanges. According to UNCTAD, developing countries are particularly vulnerable to financial unrest because they have more difficulty raising capital.