The U.S. and China, the world’s two largest economies, are expected to restrain global economic growth, which is expected to stay at 2.8% in 2025, unchanged from 2024, according to a United Nations report released on Thursday.
According to the World Economic Situation and Prospects report, “positive but somewhat slower growth forecasts for China and the United States” will be supported by strong performance in some major developing economies, particularly India and Indonesia, as well as modest recoveries in the European Union, Japan, and Britain respectively.
The U.N. Department of Economic and Social Affairs study states that “the global economy is projected to grow at a slower pace than the 2010–2019 (pre-pandemic) average of 3.2%,” even with ongoing expansion.
“This subdued performance reflects ongoing structural challenges such as weak investment, slow productivity growth, high debt levels, and demographic pressures,” it stated.
The analysis predicted that as the labor market softens and consumer spending slows, U.S. growth will decrease from 2.8% last year to 1.9% in 2025.
It stated that public sector investments and a robust export performance would partially offset the muted growth in consumption and persistent difficulties in the real estate sector, which would result in growth in China of 4.8% this year and 4.9% in 2024.
Laptops 1000Growth in Europe was predicted to rise from 0.9% in 2024 to 1.3% in 2025, “supported by easing inflation and resilient labor markets,” according to the research.
With regional GDP predicted to grow by 5.7% in 2025 and 6% in 2026, South Asia is predicted to continue to be the fastest-growing area globally.
According to the research, this growth will be aided by India’s impressive performance and the economic recoveries in Bhutan, Nepal, Pakistan, and Sri Lanka.
Strong private consumption and investment are expected to propel India’s biggest GDP in South Asia, to rise by 6.6% in 2025 and 6.8% in 2026.
