The UN World Economic Situation and Prospects 2025 report highlights how the world’s economies are expected to perform in the coming years. According to the report, global economic growth is projected to reach 2.8% in 2025. This growth is consistent with the 2.8% growth observed in 2023. While this is slightly below the average growth of 3.2% from the pre-pandemic era of 2010 to 2019.
Among the world’s largest economies, China is projected to have the highest GDP growth rate at 4.8% in 2025. In contrast, Germany, the third-largest economy, is expected to record the lowest growth rate at 0.7%. Similarly, Japan, the European Union, and the Euro Area are also projected to achieve some of the lowest growth rates globally.
Global Economic Growth Forecast
The table below presents the global economic growth trends in 2025.
| Annual percentage change | 2010-2019 average | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| World | 3.2 | 2.8 | 2.8 | 2.8 |
| United States of America | 2.4 | 2.9 | 2.8 | 1.9 |
| Japan | 1.2 | 1.7 | -0.2 | 1.0 |
| European Union | 1.6 | 0.4 | 0.9 | 1.3 |
| Euro area | 1.4 | 0.4 | 0.7 | 1.1 |
| United Kingdom of Great Britain and Northern Ireland | 2.0 | 0.3 | 0.8 | 1.2 |
| China | 7.7 | 5.2 | 4.9 | 4.8 |
| Germany | -0.3 | -0.2 | 0.3 | 0.7 |
| India | 6.7 | 8.0 | 6.9 | 6.6 |
The data is sourced from: UN World Economic Situation and Prospects 2025
China
China is the world’s second-largest economy by nominal GDP and the largest by GDP (PPP). The country is expected to achieve one of the highest growth rates among major global economies, second only to India. Its growth is projected to slow slightly from 4.9% in 2024 to 4.8% in 2025. However, China is projected to grow at a much higher rate than the United States.
United States
The United States is the is the world’s largest economy by nominal GDP and the second-largest by GDP (PPP). Iis expected to slow down in growth, from 2.8% in 2024 to 1.9% in 2025. This projected drop in growth is mainly because of higher interest rates in US aimed at controlling inflation. Other factors like uncertainty around government policies, global trade tensions, and a tighter job market also play a role in slowing growth in the United States.
Japan
Japan is set to recover from a small economic contraction of -0.2% in 2024 to grow by 1.0% in 2025. This recovery in growth is helped by government spending and better export performance. However, Japan is still facing long-term challenges like aging population, low birth rates, and weak domestic spending.
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European Union
The European Union is likely to grow from 0.9% in 2024 to 1.3% in 2025. The growth forecast of the Euro Area is projected to improve from 0.7% to 1.1% during the same time. This growth in EU is driven by lower energy prices and increased government investment in infrastructure and green energy projects. However, challenges like the ongoing conflict in Ukraine still create risks for trade and investment in the region.
United Kingdom
The United Kingdom is expected to improve its growth rate from 0.8% in 2024 to 1.2% in 2025. This is due to the UK’s better trade relationships after Brexit and more investments in renewable energy. The country still faces problems like high inflation and shortages of skilled workers.
India
India is the world’s fifth-largest economy with a nominal GDP of approximately $4.2 trillion. The country is expected to have the highest growth rate among major economies, projected at 6.6%. However, its growth is projected to slow from 6.9% in 2024 to 6.6% in 2025. This slowdown is mostly due to global challenges affecting its exports. However, India’s large, young population and massive investment in infrastructure keep its growth outlook strong.
Additionally, Guyana’s impressive growth of 15.5% in 2024 is expected to slow to 7.5% in 2025. This slowdown is natural as the economy adjusts after rapid growth driven by big oil discoveries.
Conclusion
Global growth in 2025 is projected to remain at 2.8%, the same as in 2024. Among the world’s top 10 economies, India is expected to have the highest growth rate at 6.6%, followed by China at 4.8%. The United States, the world’s largest economy, is forecasted to grow by 1.9%. Meanwhile, Japan, the European Union, and the Euro Area are expected to achieve some of the lowest growth rates globally. One of the biggest challenges to global growth is higher inflation and rising interest rates in many countries. Geopolitical tensions also add uncertainty in growth. The war in Ukraine and trade disputes between major economies disrupt trade, reduce investment, and create challenges for businesses and consumers globally.
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