Global Leaders Warn of Slowing Growth as Economic Risks Rise

Global leaders are warning that economic growth is slowing as rising debt levels, persistent inflation pressures, and geopolitical uncertainty increase risks to the global outlook, according to statements from policymakers and international institutions.

Speaking at recent international forums and policy meetings, senior officials highlighted concerns that the world economy is entering a more fragile phase following years of shocks from the pandemic, supply chain disruptions, and conflicts. While inflation has eased in some major economies, high interest rates and weak demand continue to weigh on growth prospects.

Advanced economies are facing tighter financial conditions as central banks maintain cautious policy stances to prevent inflation from returning. At the same time, emerging and developing countries are grappling with rising debt burdens, currency pressures, and reduced access to financing. Leaders warned that these combined pressures could widen economic inequality and slow global recovery.

Trade growth has also shown signs of weakness. Slower demand in key markets, coupled with ongoing geopolitical tensions, has disrupted global supply chains and dampened business confidence. Manufacturing activity remains subdued in several regions, while investment decisions are being delayed amid uncertainty over future policy and market conditions.

International financial institutions have called for coordinated action to address mounting risks. Officials stressed the need for targeted fiscal support to protect vulnerable populations, while avoiding excessive spending that could worsen debt levels. They also urged governments to implement structural reforms aimed at boosting productivity, improving labour markets, and supporting long-term growth.

Climate-related risks were another focus of concern. Extreme weather events and the cost of climate adaptation are placing additional strain on public finances, particularly in developing economies. Leaders warned that failure to address climate challenges could further undermine economic stability and growth.

Despite the warnings, policymakers emphasised that the global economy still has areas of resilience, including strong employment in some regions and continued technological investment. However, they cautioned that without careful policy coordination and renewed international cooperation, the risks of a sharper slowdown could increase.

As economic uncertainty persists, leaders urged governments and institutions to act decisively to strengthen resilience, manage risks, and support sustainable growth in an increasingly complex global environment.

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