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WESP_2025_ESA_PR_EN

The UN World Economic Situation and Prospects (WESP) 2025 report highlights strong economic growth in East and South Asia, driven by private consumption and exports, despite risks from geopolitical tensions and climate vulnerabilities. Global growth is projected to remain at 2.8% in 2025, with East Asia expected to grow at 4.7% and South Asia at 5.7%. The report emphasizes the importance of managing critical minerals responsibly to support sustainable development while addressing associated risks.

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WESP_2025_ESA_PR_EN

The UN World Economic Situation and Prospects (WESP) 2025 report highlights strong economic growth in East and South Asia, driven by private consumption and exports, despite risks from geopolitical tensions and climate vulnerabilities. Global growth is projected to remain at 2.8% in 2025, with East Asia expected to grow at 4.7% and South Asia at 5.7%. The report emphasizes the importance of managing critical minerals responsibly to support sustainable development while addressing associated risks.

Uploaded by

dileepyadav2712001
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Press Release

Under embargo until 9 January 2025, 12:30 pm EST

Economic resilience in East and South Asia supports global growth


amidst challenges, according to UN flagship economic report

Robust consumption and trade boost regional prospects, despite looming risks

Bangkok/New Delhi, 9 January 2025 – East and South Asia register robust economic growth
underpinned by strong private consumption and exports, though tempered by rising geopolitical
and trade tensions, persistent debt challenges, and climate vulnerabilities, according to the UN
World Economic Situation and Prospects (WESP) 2025.

The UN flagship economic report projects that global growth will remain at 2.8 per cent in 2025,
unchanged from 2024. While the world economy has demonstrated resilience, withstanding a
series of mutually reinforcing shocks, growth remains below the pre-pandemic average of 3.2 per
cent, constrained by weak investment, sluggish productivity growth, and high debt levels.

The report notes that lower inflation and ongoing monetary easing in many economies could
provide a modest boost to global economic activity in 2025. However, uncertainty still looms
large, with risks stemming from geopolitical conflicts, rising trade tensions and elevated
borrowing costs in many parts of the world. These challenges are particularly acute for low-
income and vulnerable countries, where sub-par and fragile growth threatens to further
undermine progress towards the Sustainable Development Goals (SDGs).

“Countries cannot ignore these perils. In our interconnected economy, shocks on one side of the
world push up prices on the other. Every country is affected and must be part of the solution—
building on progress made,” said António Guterres, United Nations Secretary-General, in the
foreword to the report. “We’ve set a path. Now it’s time to deliver. Together, let’s make 2025
the year we put the world on track for a prosperous, sustainable future for all.”

Growth prospects in East Asia


Economic prospects in East Asia will remain stable, with an average growth projected at 4.7 per
cent in 2025 and 4.5 per cent in 2026, compared to 4.8 per cent in 2024. Despite a moderate
slowdown, the region remains an important contributor to global economic growth. Private
consumption, supported by low inflation and robust wage growth, continues as the economic

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engine, alongside significant contributions from growth in merchandise trade. Inflation in the
region is projected to stay muted at 1.4 per cent in 2025 and 1.5 per cent in 2026.

The Chinese economy is expected to continue the trend of a gradual moderation amid tepid
household consumption, lingering property sector weakness and rising trade tensions. Growth is
projected to be at 4.8 per cent in 2025, compared to an estimated 4.9 per cent in 2024. The
government has responded with a series of proactive measures including monetary easing and
fiscal support aimed at bolstering the property market, boosting manufacturing and
infrastructure investments, and addressing local government debt challenges.

Growth prospects in South Asia


South Asia’s economic outlook remains robust, with regional GDP anticipated to grow by 5.7 per
cent in 2025, compared to 5.9 per cent in 2024, supported by strong performance in India and
recovery in Bhutan, Nepal, Pakistan, and Sri Lanka. However, risks to the outlook are tilted to the
downside owing to deceleration in external demand, ongoing debt challenges, and social unrests.

India’s economy is projected to grow by 6.6 per cent in 2025, following an estimated expansion
of 6.9 per cent in 2024, largely driven by private consumption and investment. Additionally,
strong export growth in services and certain manufactured goods will bolster economic activity.

Looming risks ahead


East and South Asia face mounting downside risks that could dampen economic prospects. Key
risks and challenges include escalating geopolitical tensions, trade disputes, and the impact of
climate change, which could reignite inflationary pressures and pose severe risks to food security.
Additionally, protracted weakness in China’s property market and high levels of public and
external debt across many South Asian countries could further strain economic stability.

Policies to counteract risks and support resilience


In response to these risks and challenges, governments across East and South Asia have
implemented tailored policies. Easing inflation prompted many central banks in the region to
lower interest rates in 2024. A few monetary authorities, however, remained cautious due to
country-specific concerns such as volatile food prices and elevated debt levels.

On the fiscal front, countries in the region are focusing on regaining fiscal space and supporting
economic activity through strategic public spending and reforms. East Asian economies are
prioritizing fiscal consolidation to curb budget deficits, with measures including tax increases,
subsidy cuts and targeted financial assistance. In South Asia, many countries are actively pursuing

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fiscal consolidation and reforms to strengthen fiscal positions and to foster macroeconomic
stability.

Critical minerals: A vital opportunity for accelerating sustainable development

The report highlights the potential of critical minerals for the energy transition—such as lithium,
cobalt, and rare earth elements—and also for accelerating progress towards the SDGs in many
countries.

For resource-rich developing countries, including several in East and South Asia, rising global
demand for critical minerals presents a unique opportunity to boost growth, create jobs, and
increase public revenues for investment in sustainable development. However, the report warns
that these opportunities come with significant risks. Poor governance, unsafe labour practices,
environmental degradation, and over-reliance on volatile commodity markets could exacerbate
inequalities and harm ecosystems, undermining long-term development gains.

“Critical minerals have immense potential to accelerate sustainable development, but only if
managed responsibly,” said Li Junhua, United Nations Under-Secretary-General for Economic and
Social Affairs. “Governments must adopt forward-looking policies and comprehensive regulatory
frameworks to drive sustainable extraction, equitable benefit-sharing, and investments in
building productive capacities to maximize the development gains from these resources.”

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The report will be available on 9 January 2025, 12:30 pm EST
on https://www.bit.ly/UN_WESP2025 and desapublications.un.org once the embargo has been
lifted.

Hashtag: #WorldEconomyReport

Media Contacts:
Alex del Castello, UN Department of Global Communications, [email protected]
Helen Rosengren, UN Department of Economic and Social Affairs, [email protected]

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