New York, United States – Global economic growth is projected to remain at 2.8 percent in 2025, unchanged from this past year, according to a United Nations flagship report released on Thursday.
The World Economic Situation and Prospects (WESP) 2025 report shows that despite withstanding a series of mutually reinforcing shocks, global economic growth has stagnated and remains below the pre-pandemic annual average of 3.2 percent, according to QNA.
The report produced by the UN Department of Economic and Social Affairs (DESA), highlights the enduring impact of weak investment, sluggish productivity, and high debt levels on global economic performance.
It said that positive but somewhat slower growth forecasts for China and the United States will be complemented by modest recoveries in the European Union, Japan, and Britain and robust performance in some large developing economies, notably India and Indonesia.
According to the report, US growth was expected to moderate from 2.8 percent last year to 1.9 percent in 2025 as the labor market softens and consumer spending slows.
It said growth in China was estimated at 4.9 percent for 2024 and projected to be 4.8 percent this year with public sector investments and a strong export performance partly offset by subdued consumption growth and lingering property sector weakness.
Europe was expected to recover modestly with growth increasing from 0.9 percent in 2024 to 1.3 percent in 2025, “supported by easing inflation and resilient labor markets,” the report said.
The report mentioned that major central banks are likely to further reduce interest rates in 2025 as inflationary pressures ease. Global inflation is projected to decline from 4 percent in 2024 to 3.4 percent in 2025, offering some relief to households and businesses.
