UNCTAD’s Trade and Development Report 2026

Why in News?

The United Nations Conference on Trade and Development (UNCTAD) presented its Trade and Development Report 2026: The Geoeconomics of Development in Geneva. The report projects global economic growth of 2.6% in 2026, down from 2.9% in 2025, amid geopolitical tensions, energy-price pressures and increasing use of trade and technology policies for strategic objectives.

About the Trade and Development Report 2026

The report examines how geopolitical competition and economic policies are reshaping global trade, investment and development. Global trade in goods and services reached a record US$35 trillion in 2025. In 2026, trade in goods and services is expected to expand by around 4% at constant prices, although higher trade values are also being driven by price increases amid the energy shock.

Developing economies are projected to grow by 4% in 2026, compared with 4.7% in 2025. The report highlights a shift in global trade patterns, with trade between China and the United States declining by more than 20% since 2024, while East Asia has expanded trade with both China and North America.

Governments are increasingly using industrial, trade, financial and technology policies to pursue economic and national security objectives. Export controls, investment screening and supply-chain requirements can restrict access to strategic sectors, making it more difficult for new entrants to participate in higher-value economic activities.

Regional and Country-Level Growth Projections

Asia is projected to contribute 59% of global economic growth in 2026. Among major Asian economies, India is projected to grow by 7.3%, China by 4.5% and Indonesia by 5.2%.

Other projected high-growth economies include Kyrgyzstan at 8.8%, Uzbekistan at 7.9%, Viet Nam at 7.8%, Mongolia at 7% and Tajikistan at 6.6%.

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