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People walk as they shop in a market, ahead of Eid al-Fitr celebrations in Karachi, on April 19, 2023. — Reuters
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According to a UN report, an important South Asian economy is expected to see a slight growth and economic stability in 2025, after a contraction phase, its GDP is expected to increase by 2.3 % in GDP.
The report, titled ‘The United Nations World’s Economic Situation and Possibility 2025’, has been allowed to launch or continue financial relaxation in 2025, with inflation decline.
Meanwhile, governments in Pakistan, Bangladesh and Sri Lanka are expected to continue financial stability and economic reforms under the programs operated by the International Monetary Fund (IMF).
It states that South Asia is expected to remain strong in a close -term approach, which is 5.7 percent in 2025 and 6.0 percent in 2026, “strong performance in India as well as economic recovery in some other economies”, including Bhutan, Nepal and Sri Lanka.
The report states that the global economy is at an uncertain point, identifying the high level of trade tensions and high levels of policy. The recent rise in prices – which is to raise the effective rate of US tariffs – the risk of increasing production costs, disrupting global supply chains and increasing financial riots.
The uncertainty on commercial and economic policies, in conjunction with an unstable geographical political land, is indicating businesses delaying or measuring important investment decisions. This progress is complicating the current challenges, including increasing the level of high debt and slowing productivity, which further damages the chances of global development.
The global GDP growth is now predicted only 2.4 % in 2025, which is less than 2.9 percent in 2024 and less than 0.4 percent of the January 2025 projection.
Delivery global growth, weakening inflation and global trade – which includes half of the trading growth in 2024 to 1.6 % in 2025 – ends progress towards sustainable development goals.
The slow behavior is wide -ranging, which affects both developing and developing economies. In the United States, growth is likely to decrease significantly, from 2.8 % to 1.6 % in 2024, with high taxes and uncertainty of policy, private investment and weight weight are expected. In the European Union, GDP growth is predicted by 1.0 % in 2025, which has not been changed since 2024, which is between weak pure exports and high trade barriers.
It is expected that China’s growth will decrease this year, which reflects consumers’ suppressed emotions, barriers to export -based manufacturing and the ongoing challenges of the property sector. Many other developing economies, including Brazil, Mexico and South Africa, are also facing a decline in growth due to weakening trade, reducing investment and decreasing commodity prices. India, which has been changed to 6.3 %, has been changed to 6.3 %, which has been changed to 6.3 %.
“Tariff shock is at risk of tough growth, reducing growth, reducing export income and promoting debt challenges, especially since it is long -lasting,” said Secretary -General Li Jinhava, under economic and social affairs for the economic and social affairs of the United Nations.
Although the global headline inflation has dropped from 5.7 percent to 4.0 percent in 2024, the price pressure in many economies is higher than stubborn. By early 2025, two -thirds of the countries exceeded the average inflation, with more than 20 developing economies facing two numbers.
Food inflation, an average of more than 6 %, affects low -income households, especially in Africa, South Asia and Western Asia. High trade barriers and climate shock are further increasing inflation, emphasizing the need for integrated policies.
In many countries, the challenges of monetary policy have intensified in uncertain economic environment. Central banks are caught up with a difficult trade relationship between handling inflation pressure-which increases the rise of revenue-in-incidence of pricing-and supports the slow economies. At the same time, limited financial space, especially in developing economies, forces governments’ ability to effectively reduce economic slowdown.
Destroying global possibilities and geographical political pieces damages the progress of development.
This, this, in many developing countries, this dark economic outlook offends jobs, reducing poverty and dealing with inequality. For the least developed countries – where it is expected to decrease from 4.5 % in 2024 to 4.1 percent in 2025 – the risk of decreasing export revenue, severe financial conditions and reduction of government development aid is at risk of further damage to the financial space and increasing the risk of debt discomfort.
The increase in commercial veins is further pressure to the multilateral trading system, which makes small and weak economies backward in a scattered global landscape.
To tackle these challenges, multilateral cooperation must be strengthened. Living the rules -based trade system and providing targeted support to the weaker countries will be important to promote sustainable and comprehensive development.
The report added that from June 30 to July 3, 2025, the fourth International Conference on Financing for Development in Cyola, Spain, would be a major platform to resolve issues such as pursuing concrete steps to help all of them to help all financing and financing for all.
