Global Economy Weakens as Modern Slavery and Job Risks Rise

Global economic growth will slow in 2025 compared to the previous year.

Global economic growth will slow to 2.6 per cent in 2025, down from 2.9 per cent in 2024, as global trade and investment face growing pressure from financial volatility and geopolitical uncertainty, according to a new report by the UN Trade and Development body (UNCTAD).

Shifts in financial markets now influence global trade almost as strongly as real economic activity, shaping prospects for developing countries in particular.

“Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets and capital flows,” said Rebeca Grynspan, UNCTAD Secretary-General.

Developing Economies Under Pressure

Developing economies are growing faster than advanced ones, but high borrowing costs, financial market volatility and climate risks are limiting their ability to invest and maintain growth, the report notes.

Climate vulnerability adds to financial pressure. Countries repeatedly exposed to extreme weather now pay an estimated 20 billion dollars more annually in interest because lenders view them as higher risk, according to UNCTAD.

Dollar Dominance

The United States dollar remains at the centre of global finance, even as some diversification emerges.

Its share of cross-border payments through the SWIFT system has risen sharply—from 39 per cent to about 50 per cent in just five years—and the United States continues to dominate global stock and bond markets.

While this can offer stability during financial shocks, it also means developing countries are increasingly exposed to US financial cycles they cannot influence, UNCTAD said.

Global Modern Slavery Rises to 50 Million

“Slavery is a horror from the history books — and a relentless contemporary crisis,” said Secretary-General António Guterres as the UN marked the International Day for the Abolition of Slavery on 2 December.

More than 15 million men, women and children were captured, chained and forced into slavery across oceans, many losing their lives during the harrowing journey, he said.

Today, an estimated 50 million people remain trapped in modern forms of slavery, many of them women and children.

The day is dedicated to raising awareness and mobilising action to end slavery and its contemporary manifestations, including human trafficking, sexual exploitation, child labour, forced marriage and the recruitment of children into armed conflict.

Widespread Exploitation

Forced labour generates an estimated 236 billion dollars in annual profits — wages effectively stolen from workers, especially those already struggling to support their families.

“Contemporary forms of slavery are perpetuated by criminal networks that prey on people facing extreme poverty, discrimination or environmental degradation — and by traffickers who exploit people fleeing conflict or migrating in search of safety and opportunity,” Mr Guterres said.

No region is exempt:

Asia and the Pacific: 15.1 million

Europe and Central Asia: 4.1 million

Africa: 3.8 million

The Americas: 3.6 million

Arab States: 0.9 million

80% of Agricultural Jobs in Latin America Are Informal

More than 80 per cent of agricultural workers in Latin America continue to operate under informal labour arrangements, leaving them without formal protection or social security, according to a new report from the International Labour Organization (ILO) and the Food and Agriculture Organization (FAO).

Women, youth and older persons in rural areas are disproportionately affected. The report shows that 86.4 per cent of women work informally, compared with 78 per cent of men.

The informal sector also accounts for 46 per cent of all child labour in the region, while more than half of the agricultural workforce has low levels of education.

Slow Progress

Although some progress was made between 2019 and 2023, nearly half of all young workers — and the vast majority of women — continue to be employed informally, the UN agencies noted.

The ILO and FAO continue to support governments, employers and workers in developing policies that can transform the agricultural sector into a true engine of decent employment, food security and sustainability across the region.