UN Report: Global Growth Stagnates at 2.8% for 2025, Below Pre-Pandemic Levels- Press Conference

Press conference by Mr. Li Junhua, Under-Secretary-General for Economic and Social Affairs, Mr. Shantanu Mukherjee, Director, Economic Analysis and Policy Division at UN DESA and Mr. Hamid Rashid, Chief, Global Economic Monitoring Branch, Economic Analysis and Policy Division at UN DESA, on the launch of the World Economic Situation and Prospects (WESP) report 2025. The WESP report will also be launched regionally in Bangkok, Beirut, Geneva, Mexico, Moscow and New Delhi in early January. --- According to a UN flagship report released today (9 Jan), the global economic growth is projected to remain at 2.8 percent in 2025, unchanged from this past year. The World Economic Situation and Prospects (WESP) 2025 report shows that despite withstanding a series of mutually reinforcing shocks, global economic growth has stagnated and remains below the pre-pandemic annual average of 3.2 percent. The report produced by the UN Department of Economic and Social Affairs (DESA), highlights the enduring impact of weak investment, sluggish productivity, and high debt levels on global economic performance. It also underscores the importance of global cooperation and prudent policies to lift growth and place it on a stable and equitable pathway that can accelerate progress towards the SDGs. Talking to the press today, Li Junhua, UN Under-Secretary-General for Economic and Social Affairs, said, “Our current assessment indicates that the world economy has largely avoided a broad-based contraction despite the unprecedented shocks of the last few years, and the most prolonged period of monetary tightening in recent history. For 2025, we project a global growth of 2.8 percent, similar to 2024. Lower inflation, monetary easing, and the recovery of international trade underpin this relatively stable outlook.” He added, “Nevertheless, we note that this rate remains well below the pre-pandemic average of 3.2 percent, recorded over 2010-2019. The recovery remains uneven, driven primarily by a few large economies. Subdued growth prospects pose significant challenges, particularly for developing countries.” This year’s thematic chapter takes a deep dive into the subject of critical minerals for the energy transition that can ramp up climate action while presenting opportunities for many developing countries to create jobs, generate public revenues and reduce poverty and inequality. He said, “Addressing debt challenges, curbing illicit financial flows and strengthening domestic resource mobilization can increase the public revenues for investing in the SDGs. For many countries, the rising global demand for minerals critical for the energy transition presents a unique opportunity to stimulate growth, create jobs, and reduce poverty and inequality.” Such favorable outcomes are not inevitable, however, and need coherent national policies as well as international support to become possible. Li Junhua concluded, “Urgent actions are needed to address the debt sustainability challenges in many countries; to close the gaps in technology, financing, and infrastructure that hinder equitable growth; and to ensure that an accelerated energy transition reduces climate risks for all. The challenges we face are complex, but the solutions are within our reach – if we work together.”