The United Nations Office of Economic and Social Affairs (DESA) on Thursday released its annual report titled ‘World Economic Situation and Prospects 2025’.
The report shows that the global economy faces multiple challenges, but its pace has slowed and is now below the pre-pandemic annual average of 3.2 percent.
UN Secretary-General Antonio Guterres has called for decisive action to address the challenges facing the global economy in the report’s proposal.
“Countries cannot afford to ignore this risk. In our interconnected economy, perceived shocks on one side lead to price increases on the other. “Every country is affected and must be part of the solution.”
Sectoral Situation: Uneven Performance
United States of America India’s economic growth is expected to slow to 1.8 percent this year from 2.8 percent in 2024. This is due to a sluggish labor market and a slowdown in consumer spending.
there itself Europe Economic conditions are expected to improve slightly. The GDP growth rate was 0.9 percent in 2024, which could reach 1.3 percent in 2025. In the European region, inflation has moderated and labor markets are performing well, but trends such as weak productivity and an aging population are weighing on the economic outlook.
there itself, East Asia Economic growth rate in India is estimated at 4.7 percent this year, which is mainly China This depends on India’s economic performance, where the pace of growth is likely to be 4.8 percent.
South Asia The region is projected to be the fastest growing economy, led by GDP growth of 5.7 percent in 2025, led by growth of 6.6 percent. India will be done by as well, Bhutan, Nepal, Pakistan and Sri Lanka The situation has improved. However, external demand in the region has declined, debt challenges persist and there is a risk of social unrest.
Africa India’s economy may grow to 3.7 percent this year from 3.4 percent last year, one of the reasons Egypt, Nigeria and South Africa Have an improvement record. However, uncertainty remains over the region’s economic prospects due to violent conflict, high debt costs and climate-related challenges.
Global trade is projected to expand 3.2 percent this year, driven by strong exports from Asia and growth in services trade.
Inflation is expected to ease slightly around the world and may come down to 3.4 percent, which is expected to provide relief to businesses and households.
Challenges facing developing countries
Many developing countries are expected to face persistent inflationary pressures, with one in five experiencing double-digit inflation.
Recovery will be hampered by high debt burdens and limited access to international financing.
Food inflation is also a major problem, and is above five percent in nearly half of developing countries. This has deepened food insecurity, particularly in low-income countries that are already struggling with extreme weather events, violent conflicts and economic instability.
The report warns that if food inflation continues and the rate of economic growth slows, millions of people could sink into poverty.
A call for multilateral action
The report calls for multilateral action to tackle debt, inequality and climate change, among other interconnected global crises.
Governments have been urged to emphasize large-scale investment in clean energy, infrastructure and key social sectors including education and health.
Stronger international cooperation is vital to better manage the inherent risks and economic opportunities of key minerals to ensure sustainable and equitable benefits for developing countries.