Summary

The United Nations Department of Economic and Social Affairs (UN DESA) has released an updated forecast for the global economy in 2025. According to the report, global GDP growth is projected to reach 2.4% for the year (down from the 2.8% forecast in January 2025), while global trade is expected to grow by just 1.6% (compared to 3.3% in 2024). By early 2025, inflation had exceeded pre-COVID-19 averages in two-thirds of countries worldwide. Key factors behind the economic slowdown include rising trade tariffs, disruptions to global supply chains, and tighter monetary policy. While the deceleration in growth is broad-based, developing countries face the highest risks due to tighter financial conditions, declining investment, and reduced export revenues. Fiscal constraints amid growing inflationary pressures are increasing the likelihood of debt crises and socio-economic instability.