New York, Jan. 8 -- Global economic output is forecast to grow by 2.7 per cent in 2026, slightly below the 2.8 per cent estimated for 2025 and well below the pre-pandemic average of 3.2 per cent, according to the World Economic Situation and Prospects 2026, released by the United Nations on Thursday.

In 2025, unexpected resilience to sharp increases in US tariffs, supported by solid consumer spending and easing inflation, helped sustain growth, according to the latest United Nations report.

However, underlying weaknesses persist.

Subdued investment and limited fiscal space are weighing on economic activity, raising the prospect that the world economy could settle into a persistently slower growth path than in the pre-pandemic era, the ...