The global economy is forecast to grow by 2.8% in 2025, driven by strong performances from China, the United States, India, and Indonesia, despite headwinds from inflation and conflicts, the United Nations reported on Monday.
The UN’s “World Economic Situation and Prospects 2025” highlights stable but subpar growth. “We are in a period of stable, subpar growth,” said Shantanu Mukherjee, head of the Global Economic Monitoring Branch at the UN.
The U.S. economy exceeded expectations in 2024 due to consumer and public spending but is expected to slow from 2.8% to 1.9% in 2025. China’s growth will dip slightly from 4.9% to 4.8%, as property-sector weaknesses and slowing consumption temper public investment and exports.
India leads South Asia with a projected 6.6% growth in 2025, driven by robust private consumption and investments. Regional growth is forecast at 5.7% in 2025.
“The global reduction of poverty over the past 30 years has been driven by strong economic performance,” the report noted, especially in Asia.
However, Li Junhua of the UN cautioned, “The recovery remains driven primarily by a few large economies,” as medium-term risks persist.
Global growth remains below pre-pandemic levels, which averaged 3% annually.