South Asia’s economic growth is projected to outpace other global regions, with GDP forecasted to rise by 5.8% in 2024 and 5.7% in 2025, according to the latest United Nations report.
The “World Economic Situation and Prospects September 2024 Update,” released by the UN Department of Economic and Social Affairs (DESA), highlights potential downside risks to this outlook, including escalating geopolitical conflicts and adverse weather events, which could disrupt supply chains and lead to commodity price volatility.
In the broader Asia-Pacific region, Japan’s GDP growth forecast for 2024 has been lowered to 0.8%, while it remains unchanged at 1.1% for 2025. Australia and South Korea saw slight upward revisions in their growth projections to 1.6% and 2.6% respectively.
The report, issued on Tuesday, notes that despite recent economic challenges, including sharp interest rate hikes by central banks in 2022-23 and escalating geopolitical conflicts, the world economy has stabilized. Strong consumer spending, supported by high employment levels, rising real wages, and healthy household balance sheets, has contributed to economic resilience.
Global economic growth is projected to remain steady at 2.7% for both 2024 and 2025, representing a 0.3 percentage point increase for 2024 from earlier forecasts. This improvement is driven by stronger-than-expected economic performance in the United States, along with positive short-term growth prospects in countries like Brazil, India, and the United Kingdom.
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