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| A cargo ship is docked at the port of Vigo in Spain. |
| Photo : FAO/CVN |
Despite falling inflation, improving labor market conditions and overall monetary easing, growth is expected to remain below the pre-pandemic pace, while the global economy will continue to face significant uncertainties , said the UN Report on the World Economic Situation and Prospects 2025.
The report forecasts global growth of 2.9% in 2026.
Lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025. Uncertainties remain significant, however, with a number of risks arising from geopolitical conflicts, tensions growing trade and high borrowing costs in many countries, the report said.
These challenges are particularly acute in vulnerable, low-income countries, where fragile and below-average growth threatens to undermine the achievement of the UN Sustainable Development Goals (SDGs).
In the United States, growth is expected to slow from 2.8% in 2024 to 1.9% in 2025 due to a slowdown in the labor market and consumer spending.
Europe is expected to see a modest recovery, with gross domestic product (GDP) rising from 0.9% in 2024 to 1.3% in 2025, thanks in part to falling inflation and resilient labor markets. Fiscal tightening and long-term challenges, such as low productivity growth and an aging population, nevertheless continue to weigh on the European economic outlook.
East Asia is expected to grow 4.7% in 2025, driven by China’s stable growth – forecast at 4.8% – and supported by robust private consumption across the region.
South Asia is expected to remain the fastest growing region, with GDP increasing by 5.7% in 2025, notably thanks to growth of 6.6% in India, according to forecasts.
Africa will experience modest growth, going from 3.4% in 2024 to 3.7% in 2025, in particular thanks to the recovery of the main regional economies such as Egypt, Nigeria and South Africa.
Xinhua/VNA/CVN
