Economic Development

A man holding a fruit tree

In 2026, IFAD is strengthening rural economies by empowering youth, promoting resilience, and connecting small-scale producers to markets to drive inclusive, sustainable growth.

A group of people working on the rehabilitation of the Seychelles Islands.

Seychelles recognizes its natural environment as both its greatest asset and vulnerability, facing issues like coastal erosion, droughts, and saltwater intrusion that threaten agriculture. The ‘Ridge to Reef Approach for Integrated Management of Marine, Coastal and Terrestrial Ecosystems’ project aims to conserve ecosystem services across islands. Praslin Island specifically serves as a testing ground for ecosystem rehabilitation, led by the Terrestrial Restoration Action Society of Seychelles. The initiative targets the restoration of up to 30 hectares, successfully combining forest rehabilitation, invasive species management, and replanting efforts.

African street vendor with her child.

The World Economic Situation and Prospects 2026 presents global and regional economic outlooks, stressing the need for stronger international cooperation to advance the SDGs. The report warns of a prolonged period of slower global growth compared to the pre-pandemic era, with uneven development leaving many behind. Geopolitical tensions, policy uncertainty and fiscal pressures cloud prospects. While inflation has eased, rising living costs and risks of renewed supply disruptions—linked to conflict, climate shocks and trade fragmentation—remain key sources of global uncertainty.

Close-up of hands gently pouring raw quinoa grains into a bowl, the tiny seeds cascading like a delicate stream.

Norbu Gyeltshen and his wife, Pema Sedon, have transformed their farm in Bartsham, eastern Bhutan, by introducing quinoa, which they initially planted as an experiment. Now, quinoa is central to their work, leading to a harvest of about 1,200 kilograms last season, boosting their income and community resilience. Recognized as Bhutan’s special agricultural product, quinoa has become a national priority, thriving across all 20 districts. Supported by the FAO's One Country One Priority Product initiative, farmers are receiving training and building seed banks, fostering confidence in sustainable farming practices.

A worker wearing a yellow hard hat and a high-visibility safety vest is standing and pointing upward, guiding the placement of a container.

Standards are the invisible threads that keep global trade and technology running smoothly—ensuring consistency, safety, and trust. The World Bank’s World Development Report 2025 reveals how these silent agreements can unlock growth, but warns that overregulation can choke progress. While vital for exports and innovation, developing countries often lack influence in setting them. A balanced mix of mandatory and voluntary, tiered standards plus strong quality infrastructure can boost participation and trust. Ambition must match capacity to avoid inefficiency and inequality.

Through the ILO’s SCORE programme more than 1,700 small and medium-sized enterprises have improved safety, productivity and competitiveness, helping them grow and create better jobs.

A graphical representation of the globe with a decline arrow.

UNCTAD projects global economic growth will ease to 2.6% in 2025 and 2026, reflecting slowing momentum in major economies as temporary trade and digital boosts fade.

mountain lake

Nestled between majestic mountains and shimmering waters, Kyrgyzstan’s Issyk-Kul Basin is more than a scenic wonder, it is a living landscape rich in biodiversity, cultural heritage, and community spirit. Today, this region is at the heart of a powerful movement to restore and protect nature through a global initiative that supports community-led conservation and empowerment by the Global Environment Facility (GEF) Small Grants Programme (SGP), implemented by the United Nations Development Programme (UNDP). The initiative promotes sustainable agriculture and organic farming, restoration of wetlands and wild plant habitats, ecotourism and youth education and community training. It combines innovation with traditional knowledge. 

woman showing plastic braiding with little girl

In 2025, the global community notched important achievements for human well-being. But conflict, disasters and other crises clouded the skies over the development landscape. Against strong headwinds, countries took determined steps towards realizing their visions for a sustainable development. And the United Nations Development Programme (UNDP) was at their side. Marking its 60th anniversary, UNDP continued to evolve to meet the complex challenges of the present while laying the foundations for a more resilient future. Here are some snapshots from its work with partners, in 2025.

A stunning mountainous landscape with a winding river cutting through a lush green valley.

In Nepal’s remote Nubri Valley, Tergar Charity Nepal, founded in 2018 by Yongey Mingyur Rinpoche, merges Indigenous knowledge with nature-based solutions to fight climate change. In 2021, the initiative tackled COVID-19-driven food shortages in Samagaun by building 62 bioclimatic solar greenhouses for year-round organic farming. Combining modern and traditional techniques, these earthquake-resistant structures improve food security and strengthen resilience against climate shocks.

A woman seated outdoors on a grassy area near a mountainous landscape, operating a traditional wooden loom.

In the Himalayan mountains of Bhutan, women in the village of Goenpa Kabab weave intricate silk Kishuthara dresses on backstrap looms, a skill passed down through generations in a Buddhist, matriarchal community. Sherab Tshomo, a 41-year-old artisan, has been perfecting this craft since age eight, which involves dyeing raw silk with local plants and using traditional methods to create detailed patterns. Despite the high value of these garments within Bhutan and abroad, many women artisans struggle to access international markets, including the global fashion industry, to showcase their artistry and heritage.

A man at a factory operating a machine.

Global trade is set to grow 7% in 2025, driven by East Asia, Africa and manufacturing, reaching a record $35 trillion despite persistent imbalances and rising geopolitical fragmentation.

A diverse group of young people chatting in a college library.

Young people remain at the heart of the fight against corruption. Deeply affected by its consequences, they are uniquely positioned to uphold ethical standards in their communities and challenge corruption at every level. Building on the 2024 campaign launched on International Anti-Corruption Day (9 December), the 2025 campaign continues to highlight the role of young guardians of integrity as advocates, raising awareness about corruption. This year’s effort features young leaders sharing insights on links between organised crime and corruption and the key role of AI and emerging technologies.

Passenger airplane flying over sea.

The international civil aviation sector stands at a pivotal moment of growth and transformation. By 2050, the industry is expected to serve over 12 billion passengers annually and transport significantly larger volumes of cargo, underscoring its vital role in global connectivity and economic development. The International Civil Aviation Day seeks to highlight the importance of worldwide air transport to the social and economic progress of Member States, as well as ICAO’s unique role in fostering cooperation among governments to achieve a truly global rapid transit network that serves all humanity.

Gaza economic, infrastructure destruction.

An UNCTAD report shows prolonged military operations and restrictions have devastated the Palestinian economy, erasing two decades of progress, with Gaza’s GDP per capita at $161 and the entire population facing multidimensional poverty.