The UN has forecasted a 2.8% global economic growth in 2025, maintaining the same rate as the previous year. While inflation is dropping, labor markets are improving, and central banks are easing monetary policies, the global economy still faces significant hurdles. The report, “World Economic Situation and Prospects 2025,” highlights that growth is projected to remain below pre-pandemic levels, with persistent uncertainties clouding the economic landscape.
The forecast for 2026 predicts a slight uptick to 2.9% growth. The report notes that lower inflation and monetary easing in various countries could offer a modest boost to the global economy, but challenges like geopolitical tensions, rising trade conflicts, and high borrowing costs continue to weigh heavily on growth prospects. Low-income and vulnerable nations are particularly at risk, with fragile growth threatening progress toward Sustainable Development Goals (SDGs).
The U.S. is expected to see a slowdown, with growth moderating from 2.8% in 2024 to 1.9% in 2025 due to softening labor markets and reduced consumer spending. Europe’s growth is projected to pick up slightly, reaching 1.3%, buoyed by easing inflation and resilient labor markets, though long-term issues like aging populations and weak productivity growth persist.
East Asia, driven by China’s stable 4.8% growth, is expected to see a 4.7% increase, while South Asia will remain the fastest-growing region with India leading the way. Africa’s recovery continues, with growth rising modestly to 3.7% in 2025.
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