The United Nations has released its World Economic Situation and Prospects 2025 report, projecting that the global economy will grow by 2.8 percent in 2025, maintaining the same rate as the previous year. Despite positive indicators such as declining inflation, improving labor markets, and monetary easing, growth remains below pre-pandemic levels.
The report highlights that uncertainties persist, fueled by geopolitical tensions, rising trade conflicts, and increased borrowing costs across many nations. These challenges are particularly severe for low-income and vulnerable countries, where fragile growth could hinder progress toward the Sustainable Development Goals (SDGs).
In regional forecasts, the United States is expected to see its growth slow from 2.8 percent in 2024 to 1.9 percent in 2025 due to softened labor markets and reduced consumer spending. Europe will experience a modest recovery, with GDP growth rising from 0.9 percent in 2024 to 1.3 percent in 2025, supported by easing inflation and resilient labor markets, though it faces long-term issues like weak productivity and an aging population.
East Asia is projected to lead regional growth with a 4.7 percent increase in 2025, driven by China's steady growth of 4.8 percent and robust private consumption. South Asia remains the fastest-growing region, with a GDP growth forecast of 5.7 percent in 2025, led by India’s 6.6 percent expansion. Africa is anticipated to grow modestly from 3.4 percent in 2024 to 3.7 percent in 2025, aided by recoveries in major economies such as Egypt, Nigeria, and South Africa.
Looking ahead, the UN projects a slight uptick in global economic growth to 2.9 percent in 2026, provided that current trends continue and uncertainties are managed effectively.
Reference(s):
cgtn.com
