UN Predicts Global Economic Growth Slowing to 2.4%, While China's Economy Expected to Reach 4.6% in 2025
New York [ US On May 16 (ANI): The global economy is facing increasing pressure, as growth is anticipated to decelerate to 2.4 percent in 2025, down from 2.9 percent in 2024, according to the UN 's Global Economic Conditions and Outlook report.
The report further points out decelerations in key economic powerhouses, including China , where the economy is expected to expand by 4.6 percent, hindered by sluggish consumer spending and ongoing issues within the real estate sector. India The projected economic growth for 2025 has been adjusted downwards to 6.3 percent, yet it continues to be among the quickest expanding major economies.
On Thursday, a press release was distributed stating the following: United Nations stated, "The global economy finds itself in a critical situation, characterized by increased trade conflicts and raised policy unpredictability, as stated by the Global Economic Conditions and Outlook As of mid-2025, the recent increase in tariffs has driven up the effective cost. US the tariff rate increases sharply—posing a risk of raising production expenses and causing disruptions global supply chains and amplify financial turbulence. Global GDP growth is now forecast at just 2.4 per cent in 2025, down from 2.9 per cent in 2024 and 0.4 percentage points below the January 2025 projection.
The release added, " China It is anticipated that 's economic expansion will decelerate to 4.6 percent this year, owing to weakened consumer confidence, disturbances in export-driven industries, and persistent issues within the real estate sector. Similarly, several key emerging markets such as Brazil, Mexico, and South Africa are experiencing downward revisions in their growth forecasts, attributed to declining international trade, reduced investments, and lower commodity values. India , with its 2025 growth forecast downgraded to 6.3 percent, continues to be among the quickest-expanding major economies."
The UN It was also mentioned that the economic downturn is widespread, impacting both advanced and emerging markets. The U.S. economy is anticipated to experience a notable decline, with growth slipping from 2.8% in 2024 to 1.6% in 2025, due to increased tariffs and policy uncertainties likely dampening business investments and consumer spending. Meanwhile, the EU’s gross domestic product is predicted to grow by only 1.0% in 2025, consistent with projections for 2024, as lower export activity and elevated trade obstacles take their toll.
United Nations Under-Secretary-General for Economic and Social Affairs Li Junhua warned that the tariff shock threatens to slow growth, cut export revenues, and worsen debt burdens--at a time when several economies are already struggling to invest in long-term, sustainable development.
"The sudden increase in tariffs could severely impact susceptible developing nations, impeding economic growth, reducing export earnings, and exacerbating debt issues—particularly since these economies are already finding it difficult to invest in the necessary measures for sustained, long-term development," stated Junhua.
The United Nations also highlighted that food inflation This issue, which has consistently averaged above 6 percent, particularly impacts low-income families, notably in areas such as Africa, South Asia, and Western Asia.
"Food inflation, which has been consistently over 6 percent, disproportionately affects low-income families, especially those residing in Africa, South Asia, and Western Asia. Increased trade restrictions and climatic disruptions are exacerbating inflation concerns. This highlights the necessity of synchronized policy measures—incorporating reliable monetary systems, specific fiscal assistance, and enduring strategic plans—to stabilize costs and protect the most susceptible populations," as stated in the release by ANI.
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