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UN predicts global economic growth to remain at 2.8% in 2025

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A United Nations (UN) report released on Thursday, 9 January 2025, predicted that global economic growth would remain at 2.8% in 2025, unchanged from 2024, with the US and China holding the reins.

The World Economic Situation and Prospects report available to BrandSpur digital news platform stated that “positive but somewhat slower growth forecasts for China and the United States” would be complemented by modest recoveries in the UK, Japan, and the EU as well as strong performance in some large developing economies, particularly India and Indonesia.

The UN Department of Economic and Social Affairs stated in a report: “Despite continued expansion, the global economy is projected to grow at a slower pace than the 2010–2019 (pre-pandemic) average of 3.2%.”

“This subdued performance reflects ongoing structural challenges such as weak investment, slow productivity growth, high debt levels, and demographic pressures,” it added.

According to the analysis, as consumer spending slows and the job market softens, US GDP is predicted to decline from 2.8% last year to 1.9% in 2025.

According to the report, growth in China is expected to be 4.8% this year and 4.9% in 2024, with robust export performance and investments in the public sector partially offsetting slow growth in consumption and persistent difficulties in the real estate industry.

According to the research, Europe’s recovery would be moderate, with growth rising from 0.9% in 2024 to 1.3% in 2025, “supported by easing inflation and resilient labour markets.”

With regional GDP predicted to grow by 5.7% in 2025 and 6% in 2026, South Asia is predicted to continue to be the fastest-growing area in the globe. This growth will be aided by India’s impressive performance as well as economic recoveries in Bhutan, Nepal, Pakistan, and Sri Lanka, according to the research.

the largest economy in South Asia, India, is expected to grow by 6.6% in 2025 and 6.8% in 2026 due to strong private investment and consumption. Major central banks are anticipated to further lower interest rates in 2025 as inflationary pressures subside, according to the analysis. It is anticipated that global inflation will decrease from 4% in 2024 to 3.4% in 2025, providing some respite for both individuals and companies.

It urges audacious multinational action to address interrelated challenges such as inequality, debt, and climate change.

The report went on to reveal: “Monetary easing alone will not be sufficient to reinvigorate global growth or address widening disparities.”

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