The United Nations, in its newly released World Economic Situation and Prospects 2026 (WESP) report, forecasts global economic growth to decelerate to 2.7% in 2026. This projection marks a slight decrease from the estimated 2.8% growth in 2025 and remains significantly below the pre-pandemic average of 3.2% recorded between 2010 and 2019. The report, widely covered by news outlets including Reuters, highlights several factors contributing to this subdued outlook. Chief among them are escalating trade tensions, particularly a sharp increase in U.S. tariffs in 2025 which generated new trade frictions, although broader escalation was limited. Other contributing factors include subdued investment, limited fiscal space, and ongoing geopolitical uncertainties. Despite a degree of resilience in global economic activity, supported by solid consumer spending and easing inflation, underlying structural weaknesses persist. While global headline inflation is projected to decline further to 3.1% in 2026 from 3.4% in 2025, high prices continue to erode the real incomes and purchasing power of vulnerable households worldwide. The report also provides regional insights, noting that economic growth in India is expected to moderate slightly to 6.6% in 2026 from 7.4% in 2025, still remaining a significant driver of activity in South Asia, supported by robust public investment and resilient domestic consumption. The UN emphasizes the need for deeper global coordination and decisive collective action to address these challenges and prevent a prolonged period of fragile, below-trend growth.