Growth is projected to weaken to 2.3 per cent, or nearly half a percentage point lower than expected at the start of the year, according to the Global Economic Prospects report.
“The global outlook is predicated on tariff rates close to those of late May prevailing,” it said.
“Accordingly, pauses to previously announced tariff hikes between the United States and its trading partners are assumed to persist.”
Although a global recession is not expected, average global growth is on track to be the slowest of any decade since the 1960s.
Poor countries suffer
Growth forecasts are being slashed in nearly 70 per cent of all economies, with the poorest countries most affected.
In most developing countries, nearly 60 per cent, growth should average 3.8 per cent in 2025 before reaching an average 3.9 per cent in the following two years – more than a percentage lower than the average in the 2010s.
The slowdown will impact efforts by developing countries in areas such as job creation, poverty reduction and closing income gaps with richer economies.
“The world economy today is once more running into turbulence. Without a swift course correction, the harm to living standards could be deep,” said Indermit Gill, Senior Vice President and Chief Economist.
The report calls for rebuilding trade relations as “economic cooperation is better than any of the alternatives – for all parties,” he said.
Countries are also urged to improve business climates and to promote employment by ensuring workers are equipped with necessary skills.
At least three dead in new Russian drone assault on Ukrainian cities
A massive new wave of Russian drone attacks has killed at least three civilians and left Kyiv, Odesa and Zaporizhzhia engulfed in clouds of thick smoke, aid teams said on Tuesday.
The attack was reportedly one of the largest since Russia’s full-scale invasion more than three years ago.
In an online update, the UN aid coordinating office, OCHA, said that a maternity ward in Odesa had come under fire, causing injuries and widespread damage to homes.
Another terrible night
The UN Children’s Fund, UNICEF, underscored the impact of the violence on civilians, citing 16-year-old Sonya from Kyiv in an online post. “It was a terrible night,” she said. “The sounds were so frightening – a buzzing sound that was getting closer and explosions every five minutes.”
Russia has intensified its airstrikes on Ukraine in recent days.
According to Moscow, it stepped up its bombing campaign in retaliation for Ukraine’s suprise drone attacks deep inside Russian territory last week codenamed operation spiderweb.
Amid the ongoing conflict, UN humanitarian teams and partners continue to work to help civilians in cities across Ukraine.
They provide first aid, protection services, food, construction materials and other support including counselling and legal advice.
Haiti: Hurricane season is here, but there are no food supplies
The World Food Programme (WFP) has reported that for the first time ever, it has no prepositioned food supplies in Haiti for the hurricane season, which lasts from June to November.
WFP also said staffers do not have the financial resources to respond quickly to an emergency weather event in the country.
Other UN agencies have prepositioned water and sanitation kits for 100,000 and health supplies for 20,000 people. However, these are not sufficient, especially in the absence of food, to meet needs during an emergency.
“The current lack of contingency stocks and operational funds leaves Haiti’s most at-risk communities dangerously unprotected at a time of heightened vulnerability,” Deputy Spokesperson Farhan Haq said in a briefing Tuesday.
Famine-like conditions
Food insecurity and malnutrition are already rampant, with over half the population facing acute hunger. Haiti is one of five countries worldwide which is experiencing famine-like conditions.
Continuing armed violence by gangs in the capital and in other regions has displaced over one million people, compounding the hunger crisis and limiting access to other basic services such as clean water and health care.
UN agencies in the country estimate that they will need $908 million to continue providing life-saving resources in Haiti, but currently, they have only received $78 million in emergency support.
Refugees find hope through legal migration
Nearly one million refugees from eight countries with high asylum recognition rates were granted entry permits to 38 destination countries between 2019 and 2023, according to a new report from UN refugee agency, UNHCR, and the Organisation for Economic Co-operation and Development (OECD), Safe Pathways for Refugees.
These permits were issued through existing systems for work, study, or family reunification.
“Refugees are using the same legal channels that millions rely on every day,” said Ruven Menikdiwela, UNHCR’s Assistant High Commissioner for Protection.
“We don’t need new systems – just safer access to the ones already in place.”
In 2023 alone, nearly 255,000 permits were issued, marking a 14 per cent increase from 2022 and the highest number recorded since tracking began in 2010.
Countries such as Germany, Canada, the United States, the United Kingdom and Sweden have played a leading role.
UNHCR is urging States to remove obstacles for refugees and integrate them into regular migration systems. It also calls for stronger partnerships to expand access to legal pathways amid growing displacement and strained asylum systems.
