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The report says the U.S. economy outperformed expectations last year thanks to consumer and public-sector spending, but growth is expected to slow from 2.8% to 1.9% this year.
The world economy is expected to grow a subdued 2.8% in 2025, the United Nations said. Estimates for 2025 are contained in the recently released, “The World Economic Situation and Prospects 2025 Report”.
The positive prediction was driven by the strong although slowing growth forecast for China and the United States and by the robust performances anticipated for India and Indonesia. The European Union, Japan, and the United Kingdom will experience a modest recovery. The report says the U.S. economy outperformed expectations last year thanks to consumer and public-sector spending, but growth is expected to slow from 2.8% to 1.9% this year.
The report points out that China sees its strong growth slowing slightly from 4.9% in 2024 to 4.8% in 2025 due to lower consumption and property-sector weaknesses that are failing to make up for public investment and export strength. This is forcing the government to enact policies to lift property markets, fight local government debt, and boost demand.
The report also said that China’s shrinking population and rising trade and technology tensions could undermine medium-term growth prospects. The U.N. projected last January that 2024 global economic growth would be 2.4%. It said Thursday that the rate was estimated to have been higher, at 2.8%. Both remain below the 3% rate that the world saw before the COVID-19 pandemic started in 2020.
European growth this year is projected to gradually pick up after a weaker-than-expected performance in 2024. Japan is poised to pick up from periods of near recession and recession. India is expected to drive a strong outlook for South Asia, with regional growth projected at 5.7% in 2025 and 6% in 2026.
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India’s 6.6% growth forecast for 2025 is backed by solid private consumption and investment growth, the report says.
