UN Projects Subdued Global Economic Growth of 2.8% in 2025
The global economy, having weathered inflationary pressures and geopolitical conflicts, is forecast to grow by 2.8% in 2025, according to the United Nations’ World Economic Situation and Prospects 2025 report. While higher than the initially projected 2.4% for 2024, the figure remains below pre-pandemic growth rates of 3%.
The report attributes the modest outlook to slowing growth in major economies like China and the United States, while India and Indonesia are expected to sustain robust performances. The European Union, Japan, and the United Kingdom are predicted to experience gradual recovery.
“We are in a period of stable, subpar growth,” stated Shantanu Mukherjee, Chief of the Global Economic Monitoring Branch at the U.N., emphasizing resilience in key economies despite challenges.
China’s growth is expected to dip slightly from 4.9% in 2024 to 4.8% in 2025 due to weakening domestic consumption and property sector vulnerabilities. Meanwhile, India’s economy is set to grow by 6.6%, driven by robust private consumption and investment. South Asia is projected to maintain strong regional growth of 5.7% in 2025.
U.N. officials highlighted the role of major economies in stabilizing global recovery but warned that medium-term risks, including demographic shifts and trade tensions, could hinder sustainable growth.
“Despite prolonged monetary tightening and unprecedented shocks, the global economy has avoided broad-based contraction,” noted Li Junhua, Director of the U.N.’s Economic Analysis and Policy Division. However, he cautioned that the recovery remains concentrated in a few large economies.
