NEW DELHI: East and South Asian economies are expected to maintain solid growth in 2026 despite rising trade barriers, high debt levels and persistent global uncertainty, according to a United Nations economic report released today.
The World Economic Situation and Prospects 2026 projects growth in East Asia to moderate to 4.4 percent in 2026 and 2027, down from an estimated 4.9 percent in 2025, as the temporary boost from front-loaded exports ahead of U.S. tariffs fades. South Asia is forecast to grow 5.6 percent in 2026, supported by strong private consumption and public investment.
Globally, economic growth is projected at 2.7 percent in 2026, below the pre-pandemic average, reflecting subdued investment, limited fiscal space and heightened geopolitical tensions.
China’s economy is expected to expand by 4.6 percent in 2026, aided by supportive fiscal and monetary policies and a temporary easing of trade tensions with the United States. India’s growth is projected to moderate to 6.6 percent, underpinned by resilient household demand and strong public spending.
The UN warned that high public debt, trade policy uncertainty and potential slowdowns in major economies pose key downside risks. It called for renewed multilateral cooperation to strengthen financial stability, sustain growth and advance development goals.
