1191. World Economic Situation and Prospects 2025

As we enter February, the United Nations Department of Economic and Social Affairs (UNDESA) cited the World Economic Situation and Prospects 2025 in its newsletter and listed six things to know about 2025.

1. Global economic growth remains below pre-pandemic average
The report projects global economic growth to remain at 2.8% in 2025, below the pre-pandemic average of 3.2%. While inflation and monetary easing are expected to ease, challenges such as trade tensions, geopolitical conflicts, and rising debt burdens are looming.

2. Growth prospects vary widely by region
East Asia and South Asia are expected to continue to lead global growth in 2025, growing by 4.7% and 5.7%, respectively. Africa is forecast to grow by a slightly better 3.7%, but high debt costs and climate-related challenges are dragging it down.

3. Many countries face uncertainty
Many vulnerable economies are facing downward revisions to their growth outlook, far below pre-pandemic trends. Low growth is increasing risks to the achievement of the Sustainable Development Goals, and progress in poverty reduction is expected to remain slow and uneven.

4. Falling inflation provides room for monetary easing, but challenges remain
Global inflation is projected to fall further from 4% in 2024 to 3.4% in 2025. However, many developing countries continue to struggle with high food prices, in particular.

5. Governments are adopting gradual fiscal consolidation to improve debt sustainability and rebuild fiscal space
The fiscal crisis is particularly acute in Africa, where rising debt service burdens have left many countries lacking the resources they need for public services and investment. On a GDP-weighted basis, African governments are allocating 27% of revenues to interest payments in 2024, up from 19% in 2019 and 7% in 2007.

6. Critical minerals can play a key role in driving the energy transition and sustainable development
The growing global demand for critical minerals has great potential to accelerate sustainable development, but resource-rich developing countries will only benefit if they manage them responsibly.
 

Reference
United Nations (2025). World Economic Situation and Prospects 2025. New York　https://desapublications.un.org/publications/world-economic-situation-a…　

Contributor: IIYAMA Miyuki, Information Program