- The report of the economic situation and the perspectives of the UN 2025 published.
- The United Nations report says that Pakistan was established to see moderate growth.
- The short -term perspectives for southern Asia are expected to remain robust.
United Nations: Pakistan is expected to, a key part of the southern Asia region, experience “moderate growth, stabilizing after a period of economic contraction”, with its gross domestic product (GDP) projected that will expand by 2.3% in 2025, according to a United Nations report.
The report, entitled ‘The world’s world economic situation and the 2025 perspectives’, said that the decrease in inflation has allowed most central banks in the southern region of Asia to begin or continue the monetary decrease in 2025.
Meanwhile, governments are expected in Pakistan, Bangladesh and Sri Lanka to continue tax consolidation and economic reforms under programs supported by the International Monetary Fund (IMF).
He said that the short -term perspective for southern Asia is expected to remain robust, with a projected growth in 5.7% in 2025 and 6.0% in 2026, “driven by strong performance in India and economic recovery in some other economies”, including butan, Nepal and Sri Lanka.
The report says that the global economy is in a precarious situation, marked by increased commercial tensions and uncertainty of high policy. The recent increase in tariffs, promoting the effective rate of the United States, threaten to increase production costs, interrupt global supply chains and amplify financial turbulence.
Uncertainty about commercial and economic policies, combined with a volatile geopolitical panorama, is leading companies to delay or climb critical investment decisions. These developments aggravate the existing challenges, including high levels of debt and the slow growth of productivity, which further undermines the perspectives of global growth.
The global GDP growth is now forecast in only 2.4% in 2025, below 2.9% in 2024 and 0.4 percentage points below the January 2025 projection.
Most global growth, high inflationary pressures and weakening of global trade, including the reduction of half of the projected commercial growth of 3.3% in 2024 to 1.6% in 2025, endangers progress towards sustainable development objectives.
The deceleration is wide -based, which affects developed and developing economies. Growth in the United States is expected to make it significantly, from 2.8% in 2024 to 1.6% in 2025, with higher rates and political uncertainty that is expected to evaluate private investment and consumption. In the European Union, GDP growth is forecast at 1.0% in 2025, without changes in 2024, in the midst of weakest net exports and higher commercial barriers.
China is expected to decrease 4.6% this year, reflecting the moderate feeling of the consumer, interruptions in export -oriented manufacturing and the ongoing challenges of the real estate sector. Several other important developing economies, including Brazil, Mexico and South Africa, also face growth sales due to trade weakening, the slowdown in investment and the fall in the prices of basic products. India, whose growth forecast of 2025 has been reviewed down to 6.3%, remains one of the fastest growing economies.
“Tarifa shock runs the risk of achieving hard developing countries, slowing down, reduce exports income and aggravate debt challenges, especially because these economies are already struggling to make the necessary investments for sustainable development in the long term,” said the United Nations sub-secretary-general nations for economic and social affairs Li Junhua.
While the world -based world inflation decreased from 5.7% by 2023 to 4.0% in 2024, price pressures remain third in many economies. In early 2025, inflation exceeded pre-pandemic averages in two thirds of countries, with more than 20 developing economies that face two-digit rates.
Food inflation, with an average of more than 6%, continues to affect the lowest revenue households, particularly in Africa, South Asia and Western Asia. The highest commercial barriers and climatic shocks are further amplifying the risks of inflation, underlining the need for coordinated policies, combining credible monetary frameworks, directed fiscal support and long -term strategies, to stabilize prices and protect the most vulnerable.
In many countries, monetary policy challenges have intensified in an uncertain economic environment. Central banks are dealing with difficult compensation between inflationary pressures management, exacerbated by price -induced price clashes, and support for deceleration economies. At the same time, the limited fiscal space, especially in developing economies, limits the ability of governments to effectively mitigate economic deceleration.
The deterioration of global perspectives and geopolitical fragmentation undermine development progress.
For many developing countries, this gloomy economic perspective undermines the prospects for creating jobs, reducing poverty and addressing inequality. For less developed countries, where growth is expected to decrease 4.5% by 2024 to 4.1% in 2025, decreasing exports income, hardening of financial conditions and the reduction of official development assistance flows threaten to erosion further the fiscal space and increase the risk of the anguish of the debt.
Increased commercial frictions are further struggling the multilateral trade system, leaving small and vulnerable economies increasingly marginalized in a fragmented global panorama.
Strengthening multilateral cooperation is essential to address these challenges. The revitalization of the commercial -based commercial system and providing support aimed at vulnerable countries will be essential to promote sustainable and inclusive development.
The Fourth International Conference on Development Financing, which takes place in Seville, Spain, from June 30 to July 3, 2025, will be a crucial platform to address issues such as strengthening multilateral cooperation, the sustainability of debt and more to promote concrete actions on financing for sustainable development for all, the report added.
