The global economy is losing vast value through systemic waste and inefficiency, with a new assessment putting annual losses at €25.4 trillion ($29.7) , equivalent to 31 per cent of global GDP, underscoring the scale of economic exposure linked to linear resource use.

According to the Circularity Gap Report 2026 by Circle Economy and Deloitte Netherlands, the newly introduced “Value Gap” places end-of-life waste at €10 trillion, energy losses at €8.7 trillion and depreciation from wear and obsolescence at €5.2 trillion, while processing losses reach €904.2 billion and food losses €650.7 billion.

The report retains a circularity rate of 6.9 per cent, with more than 93 per cent of materials sourced from virgin inputs.

The analysis attributes these losses to inefficient generation and industrial processes, discarded residual value in retired assets, and material destruction during production and supply chains.

The report signals broader implications for resource productivity, capital preservation and future circular economy.