DIGIVESTASI - UN Predicts Global Economic Growth to Stagnate at 2.8 Percent in 2025, The United Nations (UN) has projected that global economic growth will remain stagnant at 2.8 percent in 2025, unchanged from the previous year. This stagnation is driven by slowdowns in the world’s two largest economies: the United States (US) and China.

According to the World Economic Situation and Prospects report from the UN Department of Economic and Social Affairs, US economic growth is expected to slow from 2.8 percent in 2024 to 1.9 percent in 2025, due to a weakening labor market and declining consumer spending. Meanwhile, China’s growth is projected to decline slightly from 4.9 percent in 2024 to 4.8 percent in 2025, despite robust public sector investment and strong exports, hampered by weak domestic consumption and continued pressures in the property sector.

Europe is forecast to experience moderate recovery, with growth rising from 0.9 percent in 2024 to 1.3 percent in 2025, supported by declining inflation and a strengthening labor market.

Meanwhile, South Asia is expected to remain the fastest-growing region globally, with projected regional GDP growth of 5.7 percent in 2025 and 6 percent in 2026. India, as the largest economy in South Asia, is projected to grow by 6.6 percent in 2025 and 6.8 percent in 2026, driven by strong private consumption and investment.

The UN also noted that while global expansion continues, the growth rate is projected to remain slower than the pre-pandemic average of 3.2 percent recorded between 2010 and 2019. This slowdown is attributed to structural challenges, including low investment, sluggish productivity growth, high debt levels, and demographic pressures.

The report highlights that major central banks are likely to continue reducing interest rates in 2025 as global inflation pressures ease, with inflation projected to decline from 4 percent in 2024 to 3.4 percent in 2025. This drop in inflation is expected to provide relief for households and businesses.

The UN also called for multilateral action to address interconnected global crises, including debt, inequality, and climate change. According to the report, “Monetary easing alone is insufficient to restore global growth or address widening disparities.”

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