3 January 2025 - On 9 January, UN DESA will release the 2025 World Economic Situation and Prospects (WESP) report, presenting the latest forecast for the global economy. What makes this edition different from other reports covering the global economy and what can we expect from it this year? We spoke with Katarzyna Rokosz and Zhenqian Huang - members of the WESP team - to find out.
What can we expect from the 2025 edition of the World Economic Situation and Prospects report?
Katarzyna Rokosz: “The numbers tell one story, but beneath the surface lies another. The report presents a mixed picture of the global economic outlook. Global growth is projected to remain stable. Most regions of the world have proven resilient and are performing slightly better than expected, notwithstanding a prolonged episode of high interest rates. But we should be clear: economic growth still remains subdued by recent historical standards and there are still considerable uncertainties ahead.
While the devastating effects of COVID-19 pandemic are largely behind us, many scarring effects still persist while we face other emerging challenges. Many developing countries are dealing with significant structural challenges, including limited fiscal space, low productivity growth, and a shortage of quality jobs. Geopolitical and trade tensions are on the rise. Moreover, in some regions, notably in sub-Saharan Africa, we are not yet back on track in advancing the Sustainable Development Goals.
In this edition, we're also focusing on an important topic – the potential of critical minerals to accelerate energy transition and deliver progress on sustainable development. These resources are becoming increasingly important, and we see real opportunities for resource-rich developing countries to benefit from rising global demand for these minerals. Stay tuned for the full report - it's going to be an interesting read!”
What makes it different from other reports covering the global economy?
Zhenqian Huang: “Our forecasting team closely follows key macroeconomic indicators and incorporates new policies and developments while making projections for GDP growth, inflation and other macroeconomic variables. However, we do more than simply publish forecast numbers. We aim to present global and regional macroeconomic trends through a development-focused lens.
The report highlights the developmental impacts of economic growth, including impacts on poverty, food security, inequality, gender equality and climate change. We pay special attention to the vulnerable country groups, including least developed countries, landlocked developing countries, and small island development States.
The monetary, fiscal and structural policy options presented in the report are primarily aimed at supporting developing and vulnerable countries in advancing their economic, social and environmental sustainability. Each edition of the WESP report also provides analysis on multilateralism and explores strategies for strengthening international cooperation for sustainable development.”
What impact do you believe this forecast and analysis have for countries around the world? How can it help make a difference towards improving the lives of people?
Zhenqian Huang: “The report provides a comprehensive overview of the risks and challenges to the global economic outlook. It can serve as a reference point or benchmark for policymakers and development partners to prioritize policies and mobilize financial resources.
For instance, while the report highlights declining inflation, it also underscores persistent food insecurity, emphasizing the need for policies to stabilize food prices and boost agricultural productivity, especially in vulnerable developing countries. Additionally, macroeconomic trends of least developed countries reveal their heightened vulnerability, providing critical insights to guide international aid, trade and investment efforts aimed at reducing poverty and enhancing resilience.”
Katarzyna Rokosz: “This edition of WESP can be particularly useful for countries with critical mineral resources. The thematic chapter provides practical guidance based on success stories and experiences from around the world. By implementing effective strategies, these countries can transform their mineral resources into better jobs, higher rates of growth and stronger, more resilient economies.
It's not just about extraction - it's about processing these minerals locally, integrating into global supply chains, and capturing value addition. This can help distribute benefits of rich resource endowment more widely and create meaningful economic opportunities for marginalized groups and communities.”
Learn more and stay tuned about the launch on 9 January 2025: World Economic Situation and Prospects 2025