UN Predicts World Economic Growth At A Subdued 2.8% In 2025

The global economy weathered challenges from conflicts and inflation last year and is projected to grow by a subdued 2.8% in 2025, the United Nations reported.

The positive outlook is driven by strong but slowing growth in China and the United States.

Michael Weissenstein wrote for the Associated Press (AP) that the forecast is detailed in the UN’s “World Economic Situation and Prospects 2025.”

According to UN economists, the positive outlook is driven by strong but slowing growth in China and the United States, along with robust performances anticipated in India and Indonesia.

However, the European Union, Japan, and the United Kingdom are expected to see only modest recovery.

“We are in a period of stable, subpar growth,” said Shantanu Mukherjee, head of the Global Economic Monitoring Branch at the UN’s Department of Economic and Social Affairs.

“This may sound a bit like what we were saying last year, but actually, if you lift the hood and take a peek at the engine, things are humming.”

The report highlighted the US economy’s strong performance in 2024, driven by consumer and public-sector spending. However, growth is expected to slow from 2.8% to 1.9% in 2025.

In China, growth is forecast to decline slightly from 4.9% in 2024 to 4.8% in 2025 due to weaker consumption and ongoing issues in the property sector. The Chinese government is implementing policies to boost demand, address local government debt, and support the property market.