Global economy shows signs of modest recovery, UN says

Global economic output is projected to grow 2.7% this year, the UN said, though risks to growth remain high. Resilience to unexpected tariff shocks has helped sustain momentum, but subdued investment and limited fiscal space are weighing on economic activity, keeping growth stable but slower than pre-pandemic levels.

The report noted that financial conditions have eased amid looser monetary policy and improving consumer sentiment. However, risks remain high, with asset valuations elevated, particularly in sectors linked to rapid advances in artificial intelligence.