Global Growth Stagnation: Top Economies Hold Back Progress

A UN report projects global economic growth to remain at 2.8% in 2025, similar to 2024, due to sluggish performance in the U.S. and China. Growth disparities and structural challenges persist, with South Asia leading in growth driven by India. Multilateral action is urged to tackle global issues.

A United Nations report projects global economic growth to stabilize at 2.8% in 2025, mirroring the forecast for 2024. Weak performances by the U.S. and China are highlighted as impediments to stronger growth, despite robust recoveries in emerging economies such as India and Indonesia.

The UN Department of Economic and Social Affairs noted growth will lag behind the pre-pandemic average of 3.2%, exacerbated by structural challenges like weak investment and high debt. South Asia is expected to outpace other regions, driven by Indian economic momentum.

Interest rates may see further reductions in 2025, as inflation is projected to fall, easing the burden on households and businesses. The report calls for bold multilateral actions to address global crises, including debt and climate change, indicating monetary policy changes alone aren't solutions.

(With inputs from agencies.)