Global Growth to Remain Subdued in 2025 Amid Uncertainty, UN Report Warns
January 9, 2025
A new report from the United Nations has warned that global economic growth is expected to remain subdued in 2025, as uncertainty surrounding the COVID-19 pandemic, the war in Ukraine, and rising inflation weighs on the global economy.
According to the report, which was released today by the UN Department of Economic and Social Affairs (DESA), global growth is projected to slow from an estimated 3.0% in 2024 to 2.5% in 2025. This is a downward revision from DESA’s previous forecast of 2.7% growth in 2025.
The report cites several factors as contributing to the subdued growth outlook, including:
- Lingering uncertainty about the COVID-19 pandemic: The pandemic continues to pose risks to global economic recovery, particularly in developing countries where vaccination rates are low and healthcare systems are fragile.
- Ongoing war in Ukraine: The war in Ukraine has disrupted supply chains, exacerbated energy prices, and created political and economic uncertainty.
- Rising inflation: Inflation has been rising rapidly around the world, eroding purchasing power and dampening consumer spending.
- Tightening monetary policy: Central banks around the world are raising interest rates to combat inflation, but this is also making borrowing more expensive and slowing economic growth.
The report also highlights several downside risks to the global economy, including:
- A resurgence of COVID-19: A new surge in COVID-19 infections could lead to renewed lockdowns and travel restrictions, disrupting economic activity.
- Escalation of the war in Ukraine: A wider conflict in Europe could have devastating consequences for the global economy.
- A global recession: A sharp slowdown in global growth could lead to a recession, with widespread job losses and falling incomes.
DESA’s report calls on governments to take urgent action to address the challenges facing the global economy and promote sustainable and inclusive growth. The report recommends:
- Providing support to vulnerable populations: Governments should provide financial assistance, food aid, and other support to households and businesses that are struggling financially.
- Investing in infrastructure and education: Governments should invest in infrastructure projects and education to create jobs and boost long-term economic growth.
- Promoting sustainable development: Governments should adopt policies that promote sustainable development and reduce inequality.
- Strengthening international cooperation: Governments should work together to address global challenges such as climate change, poverty, and conflict.
Conclusion
The UN’s report on global growth serves as a stark warning about the challenges facing the global economy in 2025. The subdued growth outlook, combined with the potential for downside risks, highlights the need for governments to act decisively to address these challenges and promote a sustainable and inclusive economic recovery.
Global growth to remain subdued in 2025 amid uncertainty, UN report warns
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
Economic Development a new article on 2025-01-09 12:00 titled “Global growth to remain subdued in 2025 amid uncertainty, UN report warns”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
4