On January 10th, the United Nations released the “World Economic Situation and Prospects 2025” (WESP) report. The report predicts that the global economic growth rate will remain at 2.8% in 2025, the same as in 2024. Although the global economy has shown strong resilience and withstood a series of overlapping shocks, the growth level is still lower than the pre pandemic average of 3.2%, mainly constrained by weak investment, weak productivity growth, and high debt levels. The report points out that the decline in inflation and continued monetary easing policies in many economies may provide a moderate boost to global economic activity in 2025. However, uncertainty still looms, including geopolitical conflicts, escalating trade tensions, and high borrowing costs in many regions. These challenges are particularly severe for low-income and fragile countries, whose growth performance is sluggish and fragile, threatening progress towards achieving the Sustainable Development Goals (SDGs).
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