New York, Jan 10, (V7N) - The world economy demonstrated resilience against conflicts and inflation in 2024 and is expected to grow by a subdued 2.8% in 2025, according to the United Nations. The U.N.’s “World Economic Situation and Prospects 2025” report highlights strong but slowing growth in China and the United States, along with promising performances from India and Indonesia. Meanwhile, the European Union, Japan, and the United Kingdom are projected to experience modest recovery.

Shantanu Mukherjee, Chief of the Global Economic Monitoring Branch at the U.N.’s Economic Analysis and Policy Division, described the global economy as “in a period of stable, subpar growth.” He acknowledged that although growth remains slow, underlying economic conditions are strong.

The report notes that the U.S. economy outperformed expectations in 2024, driven by consumer and public-sector spending. However, U.S. growth is forecast to slow from 2.8% to 1.9% in 2025. In China, growth is also expected to slow slightly, from 4.9% in 2024 to 4.8% in 2025, due to weaker consumption and struggles in the property sector. China’s shrinking population and rising trade tensions, the report adds, could further hinder long-term growth unless addressed.

Global growth for 2024 was initially projected to be 2.4%, but the rate was revised to 2.8%. Both projections remain below the pre-pandemic global growth rate of 3%. In Europe, growth is expected to pick up gradually after a weaker-than-expected performance in 2024, while Japan is anticipated to recover from recession periods. India is projected to lead the growth in South Asia, with regional growth forecast at 5.7% in 2025 and 6% in 2026, underpinned by strong private consumption and investment growth.

The report emphasizes that over the past 30 years, Asia has played a key role in driving global poverty reduction, with rapid economic growth and structural transformation in countries like China, India, and Indonesia. India’s forecasted 6.6% growth for 2025 is a result of continued private consumption and investment.

Li Junhua, Director of the Economic Analysis and Policy Division, noted that despite unprecedented shocks in recent years, including the prolonged period of monetary tightening, the global economy has avoided a broad-based contraction. However, he warned that recovery remains dependent on a few large economies.

In summary, while the world economy has largely avoided a broad downturn, growth remains uneven, with large economies like China, the U.S., India, and Indonesia driving the outlook, while Europe and other regions struggle with modest recovery.

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