The latest report by the United Nations Conference on Trade and Development (UNCTAD) revealed a decline in the global economic growth rate from 2.9% in 2024 to 2.6% during 2025, during a growing state of uncertainty dominating the global economic landscape as a result of rising inflation, higher interest rates, and disruptions in supply chains caused by the Russian war on Ukraine and the Gaza war. This has led to a deepening of economic disturbances through their direct impact on energy and commodity prices and international trade routes. The report added that global investment rates are witnessing a decline of 11% due to global tensions, rising borrowing costs, and slowing growth.

 

As a result of U.S. tariff policies, trade relations between major economies have become stressed. Global trade growth declined from 4% in 2024 to 2.5% in 2025 according to the World Trade Organization. U.S. growth is expected to slow to 1.8% in 2025 and then to 1.5% in 2026, while China’s growth rate is expected to decline from 5% to 4.6% over the same period.

 

On a structural level, the global economy has faced serious challenges represented by slow production, declining investments, and the rise of global debt to 346 trillion dollars, equivalent to three times the size of the entire global economy. These crises have been directly reflected in society, as the poverty rate rose to more than 9% during 2025, with more than 800 million people suffering from hunger. UNCTAD also indicated that financing for sustainable development is declining at a rapid pace and that global investment is drifting away from development goals.

 

According to an extensive analysis published by The Economist last October 2025, wealthy countries are heading toward a financial crisis similar to what Argentina experienced in the twentieth century, as governments move toward excessive spending and widening deficits instead of financial reform, which threatens a return of inflation as a result of fleeing from debt. The analysis indicated that public debt in wealthy countries, collectively, has risen to about 110% of GDP, a level not recorded since the Napoleonic era in the nineteenth century, when European countries submerged themselves in debt to finance wars.

 

As a result of these economic difficulties in international market, the global investment map has witnessed clear shifts in its priorities and directions due to the overlap between economic, political, and technological factors. Investment trends changed towards safe and advanced assets such as technology, government bonds, gold, government-backed financial products, alternative currencies, exchange-traded funds (ETFs), in addition to real estate. In contrast, consumer spending has declined due to shaken confidence in the economy and slowing growth, trade tensions have increased, companies have resorted to cutting expenses and postponing new projects, and the features of countries’ monetary policies have changed to encourage banks to provide loans at low interest rates. Some investments have moved toward emerging markets due to lower production costs and growth potential, despite the risks associated with them. Despite these challenges, the dynamics of the global economy still qualifies it to align with and understand all new trends in order to achieve effective investment strategies. Recently, global investments have been heading toward countries that offer high growth opportunities such as China, India, Indonesia, and Turkey. The technological transformation, particularly in the fields of artificial intelligence, big data, and financial technologies, has strengthened the importance of innovation and its impact on the quality of investments. Changes in supply chains and reducing dependence on certain countries have also affected investment priorities, and matters are now managed through different methods and means. The focus on sustainable investments has increased, and demand has grown for projects that contribute to environmental protection and the enhancement of social responsibility. Geopolitical tensions have also contributed to redirecting investment flows, alongside growing interest in the healthcare sector, and the rapid growth of the digital economy, e-commerce, and digital services.

 

With regard to regional shifts, some regions such as the Middle East and Africa have witnessed notable global interest as new investment destinations that generate good returns compared to traditional markets, making the global investment map more ambiguous and less guaranteed, and imposing new considerations on the concept of financial security for countries.

 

In conclusion, the effects of the slowdown of the economy on the global investment map vary greatly depending on the economic and political context, which calls for confident steps to achieve overall recovery. At the level of states, the need emerges to reform the financial system, expand the scope of sustainable financing, reduce the digital divide, and update investment regulations in an appropriate manner. At the individual level, investors will continue to need deep thinking about how to maintain the safety of their investments and benefit from new opportunities.

 

The transformations in the global investment map have played a major role in changing the investor’s mindset, from confidence in growth and equities, to the search for safety through bonds, then hedging against the financial system itself by resorting to gold. Today, with the rise of sovereign debt and the return of inflation, we may be facing a new era of balance between different assets, where the dominance of the traditional financial system declines in favor of real assets. Will we witness real change in the global financial system?

 

Finance and Investment Expert
 Dr. Haider Al-Majali