UN reports India economy to grow 6.6% in 2025, global growth subdued

By Anjali Sharma

UNITED NATIONS – UN World Economic Situation and Prospects 2025 report released on Friday said that India’s economy is projected to grow by 6.6 per cent in 2025, after an estimated expansion of 6.9 per cent in 2024.

It added that the growth will be largely driven by private consumption and investment, the report said. India’s strong export growth in services and certain manufactured goods will bolster economic activity.

The report said that on Chinese economy is expected to continue the trend of a gradual moderation after tepid household consumption, lingering property sector weakness and rising trade tensions.

Growth is projected to be at 4.8 per cent in 2025, compared to an estimated 4.9 per cent in 2024.

US growth is projected to moderate from 2.8 per cent in 2024 to 1.9 per cent in 2025, as the labour market softens, and consumer spending slows.

Europe is expected to recover modestly, with GDP growth increasing from 0.9 per cent in 2024 to 1.3 per cent in 2025, supported by easing inflation and resilient labour markets, though fiscal tightening and long-term challenges such as weak productivity growth and an ageing population, continue to weigh on the economic outlook.

The report warned that the global growth is expected to remain subdued in 2025 due to ongoing uncertainty.

The global economy has demonstrated resilience, withstanding a series of mutually reinforcing shocks, growth remains below the pre-pandemic average of 3.2 per cent, constrained by weak investment, sluggish productivity growth, and high debt levels, the UN report asserted.

Global economic growth is projected to remain at 2.8 per cent in 2025, unchanged from 2024, it said.

It said that the lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025.

It stressed that uncertainty still looms large, with risks stemming from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world.

UN Report said that East Asia is forecast to grow by 4.7 per cent in 2025, driven by China’s projected stable growth of 4.8 per cent.

South Asia is expected to remain the fastest-growing region, with GDP growth projected at 5.7 per cent in 2025, led by India’s robust 6.6 per cent expansion.

It said the growth in Africa is forecast to rise modestly from 3.4 per cent in 2024 to 3.7 per cent in 2025, thanks to recoveries in major economies including Egypt, Nigeria, and South Africa. However, conflicts, rising debt-servicing costs, lack of employment opportunities and increasing severity of climate-change impacts weigh on Africa’s outlook.