New York [US], May 16 (ANI): The global economy is projected to grow at a slower pace of 2.4 per cent in 2025, down from 2.9 per cent in 2024, according to the United Nations’ World Economic Situation and Prospects report. The report highlights growing economic challenges, including heightened trade tensions, rising tariffs, and policy uncertainties that are disrupting global supply chains and increasing production costs.
The report notes a significant slowdown in major economies, including China, where growth is expected to fall to 4.6 per cent, driven by weak consumer demand and ongoing property sector issues. India’s growth forecast for 2025 has been revised downward to 6.3 per cent, but the country remains one of the fastest-growing major economies.
The UN stated that the slowdown is widespread, affecting both developed and developing countries. The United States’ growth rate is projected to drop from 2.8 per cent in 2024 to 1.6 per cent in 2025, with higher tariffs impacting private investment and consumption. The European Union is expected to see stagnant growth of 1.0 per cent in 2025, amid weaker exports and trade barriers.
The report also highlights that food inflation, averaging above 6 per cent, continues to disproportionately affect low-income households, particularly in Africa, South Asia, and Western Asia. The combined effects of trade barriers and climate shocks are worsening inflation risks, emphasizing the need for coordinated policy efforts to stabilize prices and support vulnerable populations.
United Nations Under-Secretary-General for Economic and Social Affairs Li Junhua warned that the current tariff environment threatens to slow economic growth, reduce export revenues, and increase debt burdens, particularly for developing countries. He stressed the need for long-term strategies that balance credible monetary frameworks and targeted fiscal support.
The UN calls for global coordination to mitigate the economic slowdown and protect the most affected communities, urging nations to address the root causes of economic instability and inflation. (ANI)
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