New Delhi:
According to the United Nations World Economic Situation and Prospects (WESP) 2025 report, India’s economy is projected to grow at a rate of 6.6 percent in 2025. This is mainly based on private consumption and investment. Moreover, the major UN economic report further states that India’s strong export growth in services and some manufactured goods will boost economic activity.
On the other hand, “the Chinese economy is expected to continue a gradual slowing trend amid reduced domestic consumption, weakness in the property sector and rising trade tensions. The report said the growth rate is expected to be 4.8 percent in 2025.” , while 4.9 percent was projected in 2024.”
Global growth is expected to be 2.8 percent in 2025
The United Nations report estimates that global growth will be 2.8 percent in 2025. The report said low inflation and monetary easing in many economies could provide a modest boost to global economic activity in 2025. However, uncertainty still looms large, including geopolitical conflicts, rising trade tensions and borrowing constraints in many parts of the world. These challenges are particularly acute for low-income and vulnerable countries.
The UN report also highlights that there are growing downside risks in East and South Asia that could impact economic prospects. Key risks and challenges include geopolitical tensions, trade disputes and the impact of climate change, which This could rekindle inflationary pressures and pose a serious risk to food security.
In addition, prolonged weakness in China’s property market and high levels of public and external debt in many South Asian countries could further impact economic stability.
Many central banks may cut interest rates in 2024
In response to these risks and challenges, governments in East and South Asia have implemented adaptive policies. The decline in inflation prompted many central banks in the region to reduce interest rates in 2024. The report said that fiscal On the front, countries in the region are focusing on regaining fiscal space and supporting economic activity through strategic public spending and reforms.
