The United Nations has released a report projecting that global economic growth will remain at 2.8 percent in 2025, unchanged from last year. Despite falling inflation, improving labor market conditions, and monetary easing, the global economy is expected to continue facing significant uncertainties.
According to the UN World Economic Situation and Prospects 2025 report, the world economy is predicted to grow slightly by 2.9 percent in 2026. However, growth remains below pre-pandemic levels, with risks stemming from geopolitical conflicts, rising trade tensions, and elevated borrowing costs in many countries.
These challenges are particularly acute for low-income and vulnerable countries, where sub-par and fragile growth threatens to further undermine progress toward the Sustainable Development Goals (SDGs).
In regional outlooks, growth in the United States is projected to moderate from 2.8 percent in 2024 to 1.9 percent in 2025, as labor markets soften and consumer spending slows.
Europe is expected to recover modestly, with gross domestic product (GDP) increasing from 0.9 percent in 2024 to 1.3 percent in 2025. This growth is supported by easing inflation and resilient labor markets, though fiscal tightening and long-term challenges, such as weak productivity growth and an aging population, continue to weigh on the economic outlook.
East Asia is forecast to grow by 4.7 percent in 2025, driven by the Chinese mainland’s projected stable growth of 4.8 percent, supported by robust private consumption across the region.
South Asia is expected to remain the fastest-growing region, with GDP growth projected at 5.7 percent in 2025, led by India’s 6.6 percent expansion.
Africa is forecast to grow modestly from 3.4 percent in 2024 to 3.7 percent in 2025, thanks to recoveries in major economies including Egypt, Nigeria, and South Africa.
While lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025, uncertainty still looms large. The report emphasizes the need for coordinated global efforts to address these challenges and support sustainable growth.
Reference(s):
cgtn.com
