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You are at:Home » UN report predicts global economic growth rate to fall to 2.8% and inflation rate to 3.4% in 2025
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UN report predicts global economic growth rate to fall to 2.8% and inflation rate to 3.4% in 2025

Adnan MaharBy Adnan MaharJanuary 9, 2025No Comments3 Mins Read0 Views
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The United Nations’ 2025 World Economic Situation and Prospects Report projects global economic growth at 2.8% in 2025 and 2.9% in 2026, almost unchanged from the previous year.

The report predicts that growth in least developed countries (LDCs) will improve slightly in 2025, global growth will slow from its pre-pandemic average of 3.2%, and global inflation will rise to 4% in 2024. It is predicted that this will decline from 3.4% in 2025. Relieve labor market pressures in developed countries and ease international commodity prices for food and energy.

The forecast shows positive but slowing growth in China and the US, complemented by a modest recovery in the European Union, Japan and the UK, and strong performance in large developing countries such as India and Indonesia. It is expected that

Although global inflation is easing, the pace of disinflation is slowing as housing and other service sector prices remain high in developed countries, and the pace of disinflation is slowing in many low-income and vulnerable countries. The short-term outlook is said to be less favorable.
The report predicts that U.S. GDP growth will slow to 1.9% in 2025 and 2.1% in 2026 due to weak labor market performance, slow income growth, and impending cuts to public spending. The Fed expects that stubborn core inflation will likely keep the Federal Reserve’s cautious stance and constrain rapid economic growth. monetary easing.

The European Union’s GDP growth rate is projected to rise from 0.9% in 2024 to 1.3% in 2025 and 1.5% in 2026. However, structural challenges such as fiscal consolidation, geopolitical uncertainty, an aging population and slowing productivity growth could constrain expansion.

Japan is expected to continue its economic recovery, with the growth rate expected to increase from -0.2% in 2024 to 1% in 2025 and 1.2% in 2026. Growth in the CIS countries is expected to slow from 4.2% to 2.5% in 2025. Russia’s economy is expected to slow down in 2024.

China’s economic growth rate is expected to remain subdued, with consumption growth expected to remain subdued, from 4.9% in 2024 to 4.8% in 2025, partially offset by public sector investment and strong export performance. is expected to slow down.

Africa’s economic growth is expected to strengthen from an estimated 3.4% in 2024 to 3.7% in 2025 and 4% in 2026, driven by the recovery of the region’s largest economies Egypt, Nigeria and South Africa has been.

Also read: Indian economy set to grow 6.6% in 2025 on consumption, investment and exports: United Nations



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Adnan Mahar
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Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.

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