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UN Revises Global Growth Down to 2.4% for 2025, India Leads Major Economies at 6.3%

The UN's mid-year economic report highlights a precarious global outlook with trade tensions and policy uncertainty, while India remains a key driver of growth fueled by strong domestic demand and public investment.

Overview

  • India's 2025 GDP growth forecast has been revised down from 6.6% to 6.3%, yet it remains the fastest-growing large economy globally.
  • The global economy is projected to grow by just 2.4% in 2025, reflecting a 0.4 percentage point downgrade from earlier estimates, with developed and developing nations both affected.
  • Key drivers of India's growth include robust private consumption, strong public investment, and thriving services exports, despite risks to merchandise exports from potential US tariffs.
  • India's inflation is expected to cool to 4.3% in 2025, staying within the central bank's target, while unemployment remains stable but marked by persistent gender disparities in workforce participation.
  • Major economies such as China (4.6%), the US (1.6%), and Germany (-0.1%) face slower growth, highlighting India's relative resilience in a challenging global environment.