Global Economy to Slow in 2026 Amid Geopolitical Tensions

According to the United Nations agency for trade and development, the global economy has entered a period of uncertainty and instability due to ongoing geopolitical crises.

The agency forecasts a decline in global growth, from 2.9% in 2025 to 2.6% in 2026, driven by factors such as rising energy prices, transportation disruptions, market volatility, and the search for secure financial assets.

The agency notes that the global economy has shown resilience in the face of these challenges, supported by trade, industrial production in developing economies, and investments in artificial intelligence.

However, the escalation of geopolitical tensions has put this dynamic to the test, leading to a shift from a phase of supply disruptions and inflation to a more fragile period where prolonged uncertainty could lead to shortages and exacerbate financial tensions.

Developing economies are particularly exposed, facing higher fuel, food, and fertilizer costs, as well as pressures on their currencies, stricter access to financing, and a decline in investor confidence.

The agency expects global trade growth to slow, from 4.7% in 2025 to between 1.5% and 2.5% in 2026, due to disruptions in supply chains, maritime transport, and investment decisions.

Despite the rising risks, including those to global food systems, the agency identifies concrete paths to enhance resilience, including renewable energy, which is becoming increasingly cost-competitive and plays a strategic role in reducing exposure to fossil fuel price shocks.

To stabilize growth and reduce vulnerability to future shocks, the agency calls for strengthened international cooperation, more predictable trade conditions, increased financial guarantees for developing economies, and accelerated investments in affordable clean energy.

The global economy's ability to navigate these challenges will have significant implications for the Moroccan market today, as investors seek to mitigate risks and capitalize on opportunities in a rapidly changing economic landscape.

The Moroccan stock market, in particular, may experience increased volatility as investors respond to these global trends, making it essential for market participants to stay informed and adapt their strategies accordingly.

The Moroccan government's efforts to promote economic diversification and attract foreign investment will also be closely watched, as the country seeks to reduce its dependence on traditional sectors and capitalize on emerging opportunities in areas such as renewable energy and technology.