21 February 2025 – The global economy has shown remarkable resilience over the past two years, but significant challenges and uncertainties remain. At UN DESA’s seminar, The World Economy in 2025: Pitfalls and Prospects, experts took stock of recent economic trends and explored risks that could shape the road ahead.
Moderated by Shantanu Mukherjee, Director of UN DESA’s Economic Analysis and Policy Division, the discussion drew insights from the latest World Economic Situation and Prospects 2025 (WESP) and ongoing research on financing for sustainable development.
Global growth: Stronger than expected, but below pre-pandemic pace
Despite concerns over inflation and geopolitical tensions, global growth outperformed expectations in 2023‒2024, reaching 2.8 per cent. According to Ingo Pitterle, Senior Economist at UN DESA, this was largely driven by robust U.S. consumer demand and steady expansion in some large emerging economies. However, not all countries have shared this recovery—many low-income economies are still struggling to catch up, and income gaps remain wide.
Looking ahead, growth in 2025‒2026 is expected to hold steady, though still falling short of pre-pandemic levels, especially in many developing regions. Inflation is gradually easing across much of the world, but risks remain—trade restrictions, climate-related disruptions, and geopolitical tensions could keep prices and uncertainty high.
Debt challenges: A growing concern
For developing countries, debt remains a pressing issue, made even more challenging by high borrowing costs and currency risks. As UN DESA economist Hoi Wai Jackie Cheng highlighted, many governments now spend a significant share of their revenues on debt service, leaving fewer resources for essential services like healthcare, infrastructure, and climate adaptation.
What’s next? A global focus on solutions
With these challenges in mind, the upcoming Fourth International Conference on Financing for Development (30 June–3 July 2025) will be an important moment for global cooperation. The conference will explore new financing solutions and ways to tackle debt burdens, ensuring that countries can invest in sustainable development rather than just servicing debt.
Want to learn more? Check out UN DESA Publications for the latest insights.