In May 2025, United Nations Department of Economic and Social Affairs (UN-DESA) released its latest report titled ‘The World Economic Situation and Prospects as of mid-2025’. The report has revised down India’s Gross Domestic Product (GDP) growth forecast for Calendar Year 2025 (CY25) to 6.3%, down from 7.1% in CY24.
- Despite this downward projection, India remains one of the world’s fastest-growing large economies, supported by strong consumption and government spending.
- Also, India’s GDP is projected to grow marginally in CY26 to 6.4%.
Key Points:
i.This latest report is the update of UN-DESA’s previous report titled “World Economic Situation and Prospects (WESP) 2025”, released on January 09, 2025.
ii.The report is prepared by the Global Economic Monitoring Branch in the Economic Analysis and Policy Division of UN-DESA.
India-Specific Findings:
i.The report cited that unemployment in India, remains largely stable amid steady economic conditions, however, it cautioned about persistent gender disparities in employment and emphasized on the need for greater inclusivity in workforce participation.
ii.The report projected India’s inflation to decline from 4.9% (in CY24) to 4.3% (in CY25), which is in line with the Reserve Bank of India (RBI)’s 2 to 6% medium-term target range.
Global Scenario:
i.The report has projected that global economic growth rate will be at 2.4% (in 2025) and 2.5% (in 2026). These projections are 40 basis points (bps) lower compared to previous estimates made in January 2025.
ii.As per the report, global headline inflation is projected to decrease from 4.0% (in 2024) to 3.6% (in 2025), which is 20 bps higher than the January forecast (3.4%).
iii.The United States of America (USA) economy is expected to grow from 2.8% (in 2024) to 1.6% (in 2025), with higher tariffs and policy uncertainty are likely to impact private investment and consumption.
v.The growth rate of China is projected to decrease from 4.9% (in 2024) to 4.6% (in 2025), due to subdued consumer sentiment, disruptions in export-oriented manufacturing and ongoing property sector challenges.
vi.The growth rate of Least Developed Countries (LDCs) is projected to decline from 4.5% (in 2024) to 4.1% (in 2025).
- The report outlined certain challenges that may dampen the growth and increase the risk of debt distress: declining export revenues, tightening financial conditions.
About United Nations Department of Economic & Social Affairs (UN-DESA):
Under-Secretary-General (USG) for Economic and Social Affairs – Li Junhua (China)
Headquarters-New York, the United States of America (USA)
Establishment – 1948
