A United Nations flagship report released last week has projected that Global economic growth will remain at 2.8 percent in 2025, unchanged from last year.
According to a UN News article, the World Economic Situation and Prospects (WESP) 2025 report shows that global economic growth has stagnated despite mutually reinforcing shocks.
The document says growth remains below the pre-pandemic annual average of 3.2 percent.
The UN Department of Economic and Social Affairs (DESA) report highlights the enduring impact of weak investment, sluggish productivity, and high debt levels on global economic performance.
It urged bold multilateral action to address interconnected global crises, including debt, inequality, and climate change.
UN Secretary-General António Guterres, in his foreword, called for decisive action to address the challenges.
“Countries cannot ignore these perils. In our interconnected economy, shocks on one side of the world push up prices on the other. Every country is affected and must be part of the solution,” Guterres stated.
The UN report expects global trade to expand by 3.2 percent in 2025, driven by strong exports from Asia and a rebound in services trade.
It also projects that inflation will ease globally, declining to 3 percent and providing some relief to businesses and households.
Nevertheless, many developing countries are expected to face persistent inflationary pressures, with one in five experiencing double-digit rates.
“High debt burdens and limited access to international financing will continue to hinder recovery,” A UN release observed.
In addition, it noted that food inflation remains a pressing issue, with nearly half of developing countries experiencing rates above five percent, deepening food insecurity, particularly in low-income nations already grappling with extreme weather events, conflicts, and economic instability.
As a result, the UN warned that persistent food inflation and slow economic growth could push millions further into poverty.
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