The World Economic Situation and Prospects 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%.
The report forecasts that the US’s economic growth will decrease from 2.8% last year to 1.9% this year due to a weakening labor market and reduced consumer spending.
China's growth is expected to reach 4.8% this year, driven by investment in the public sector and a sharp increase in export activities.
Meanwhile, Europe's economy is expected to recover modestly, with growth rising from 0.9% in 2024 to 1.3% in 2025, thanks to easing inflation and positive signs in the labor market.
South Asia is expected to remain the fastest-growing region in the world, with the regional GDP projected to grow by 5.7% in 2025 and 6% in 2026. India, the largest economy in South Asia, is forecasted to grow by 6.6% in 2025 and 6.8% in 2026, driven by strong growth in the consumer sector and private investment.
