Global economy loses US$29 trillion annually to resource inefficiency

The global economy loses approximately US$29 trillion annually due to inefficient resource use, representing about 31% of the world's GDP. According to the 2026 Circularity Gap Report, produced by Circle Economy and Deloitte, these losses stem from linear production and consumption patterns where resources are extracted, used briefly, and discarded.

Key drivers of this value loss include: - Premature disposal of products and materials: US$11.4 trillion, driven by sectors like fast fashion and frequent device replacement. - Energy sector inefficiencies: US$9.9 trillion lost during generation, transport, and heating. - Underutilization of infrastructure: US$5.9 trillion related to buildings, machinery, and infrastructure. - Production inefficiencies and food waste: Combined losses exceeding US$1.7 trillion.

Transitioning to a circular economy—focusing on product durability, repair, reuse, and material recovery—could preserve much of this value. Experts suggest this shift offers significant opportunities for sustainable development and job creation, particularly in regions like Latin America.