Pakistan’s Economy to Grow by 2.3% in 2025 Amid Global Slowdown: UN Report

The United Nations has said that Pakistan’s economy will grow by 2.3% in 2025. This is after the country faced an economic slowdown in the past. The UN shared this forecast in its new report titled “World Economic Situation and Prospects 2025.”

The report says Pakistan is showing signs of economic stability. Inflation is going down, and the government is following IMF-backed reforms. It also mentions that Pakistan is not the only South Asian country making progress. Bangladesh and Sri Lanka are also continuing with fiscal reforms and economic adjustments.

The South Asian region overall is expected to do well in 2025. The report predicts growth of 5.7% in 2025 and 6.0% in 2026. India’s strong performance, along with recoveries in Nepal, Bhutan, and Sri Lanka, are the main reasons behind this growth.

Global Growth Under Pressure

While South Asia is improving, the global economic outlook is not very strong. The UN says that the world economy is facing many problems. One of the biggest issues is rising trade tensions, especially due to increased tariffs by the United States.

The report warns that these tensions are increasing production costs and disrupting global supply chains. Because of this, many companies are not investing as they used to. Policy uncertainty and geopolitical issues are also making things worse.

The UN has lowered its global growth forecast for 2025. World GDP is expected to grow by only 2.4%, down from 2.9% in 2024. This is also 0.4% less than what was predicted in January 2025.

Growth in Key Countries Slowing Down

• United States: Growth is likely to fall to 1.6% in 2025, down from 2.8% in 2024. Experts blame high tariffs and market uncertainty.

• European Union: GDP growth will stay low at 1.0% in 2025, same as last year. The EU is facing lower exports and trade restrictions.

• China: Growth is predicted at 4.6% in 2025. Weak spending, export issues, and housing problems are slowing it down.

Despite the global problems, Pakistan’s small but positive growth is seen as a sign of progress. The government’s focus on reforms and lower inflation is helping the country recover.