UNITED NATIONS — The global economy demonstrated resilience in the face of conflicts and inflation throughout the previous year, and it is anticipated to experience subdued growth of 2.8% in 2025, according to the latest findings from the United Nations.

In its report titled “World Economic Situation and Prospects 2025,” U.N. economists highlighted that the optimistic outlook is primarily influenced by the strong, albeit slowing, growth forecasts for both China and the United States. Additionally, they noted promising growth trajectories for countries like India and Indonesia. Meanwhile, the European Union, Japan, and the United Kingdom are also expected to see gradual recoveries, as outlined in the report.

Shantanu Mukherjee, who heads the Global Economic Monitoring Branch within the U.N.’s Economic Analysis and Policy Division, described the current economic climate as one marked by stable but subpar growth.

“It may seem like we are echoing last year’s sentiments, but a closer examination reveals that the economic engine is functioning adequately,” he stated.

The report revealed that the U.S. economy exceeded its growth expectations in the past year, largely fueled by consumer and government spending. However, a slowdown is anticipated, with growth projected to dip from 2.8% to 1.9% this year.

Regarding China, the report indicated that its growth, previously at 4.9% in 2024, is expected to slightly decrease to 4.8% in 2025. This slowdown is attributed to weaker consumption and challenges within the real estate sector, which are not being counterbalanced by public investment and export performance. In response, the government is implementing strategies to stimulate the property market, address local government debt, and enhance demand.

The report warns that China’s “shrinking population” coupled with rising trade and technology conflicts, if not managed appropriately, could negatively impact its medium-term growth potential.

Initially, the U.N. had forecasted global economic growth to reach 2.4% for 2024. However, it has now been revised upward to an estimated 2.8%, still trailing the pre-COVID-19 pandemic growth rate of 3% observed in 2020.

Growth in Europe is projected to recover gradually after a disappointing performance in 2024, while Japan is expected to bounce back from periods of stagnation and recession. In South Asia, India is set to drive a positive economic outlook, with growth expected to be 5.7% in 2025 and 6% in 2026.

The report highlights India’s growth forecast of 6.6% for 2025, emphasizing solid private consumption and investment as key contributors.

Additionally, the document underscores that the global decrease in poverty over the last three decades has been significantly influenced by robust economic performance, particularly in Asia where rapid growth and structural changes have led to unprecedented levels of poverty reduction in countries like China, India, and Indonesia.

Li Junhua, the director of the Economic Analysis and Policy Division, remarked that “the global economy has largely averted a widespread contraction, despite facing extraordinary shocks over the last several years and enduring the longest period of monetary tightening in history.”

Nonetheless, he warned that “the recovery is primarily fueled by a handful of large economies.”