The World Economic Situation and Prospects Report for 2025 issued by the United Nations expected global economic growth to stabilize at 2.8% during the current year, unchanged from the previous year.
The report, released yesterday, Thursday, said the “positive but somewhat slower growth outlook for China and the United States” is supported by modest recoveries in the European Union, Japan and Britain and strong performance in some large developing economies, especially India and Indonesia.
According to the report issued by the United Nations Department of Economic and Social Affairs, “Despite continued growth, the global economy is expected to grow at a slower pace than the 2010-2019 average (before the Corona pandemic).”
amounting to 3.2%.
The report added, “This poor performance reflects continuing structural challenges such as weak investment, slow productivity growth, high levels of debt, and demographic pressures.”
The report expected growth in the United States to slow from 2.8% last year to 1.9% in 2025 with a weak labor market and a slowdown in consumer spending.
The report estimated growth in China at about 4.9% in 2024 and expected it to reach 4.8% this year in light of public sector investments and strong export performance, offset by weak consumer growth and continued weakness in the real estate sector.
The report added that Europe is expected to recover modestly, with growth increasing from 0.9% in 2024 to 1.3% in 2025, “supported by falling inflation and a strong labor market.”
The report said that major central banks are likely to cut interest rates further in 2025 as inflationary pressures ease.
Global inflation is expected to decline from 4% in 2024 to 3.4% in 2025.
