India’s growth shines amid global economic slowdown in 2025: WEF Report – Economy News

A majority of chief economists worldwide predict weaker global economic conditions in 2025, according to the latest Chief Economists Outlook by the World Economic Forum (WEF). The report highlights significant challenges on the horizon, with 56 per cent of surveyed economists expecting a downturn. Only 17 per cent foresee any improvement, reflecting heightened uncertainty in key regions and the need for cautious policy responses.

Regional Highlights: India and South Asia Shine Amid Gloom

South Asia stands out as a bright spot in the global economic landscape, with 61 per cent of chief economists expecting strong or very strong growth in the region. India, in particular, is expected to maintain its position as the world’s fastest-growing major economy despite signs of slowing momentum.

• India’s year-on-year GDP growth for Q3 2024 was reported at 5.4 per cent, the slowest in nearly two years.
• This has prompted the Reserve Bank of India to revise its annual growth forecast downward in December 2024.

China, however, faces a less optimistic outlook, with growth projected to slow amid subdued consumer demand and weaker productivity. Europe also remains in a precarious position, with 74 per cent of respondents predicting weak or very weak growth.

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In contrast, the US economy is projected to deliver robust growth in 2025, reflecting its resilience and ability to navigate ongoing challenges.

Shifts in Global Trade Dynamics

The report highlights an evolving global trade landscape:

• Nearly half (48%) of chief economists expect an increase in global trade volumes in 2025, reflecting the resilience of global commerce.
• However, 82% of respondents anticipate greater regionalisation of trade over the next three years. This trend is likely to be accompanied by a gradual shift from goods to services.

Key Drivers of Change in Trade Patterns

Protectionism remains a significant factor reshaping global trade. Other contributors include trade tensions between major powers and conflicts, sanctions, and national security concerns.

These factors are expected to drive lasting changes in global trade patterns, underscoring the challenges of maintaining a cohesive international trade framework.

The global economy in 2025 is poised to face significant headwinds, marked by regional disparities in growth and evolving trade dynamics. While South Asia, led by India, is expected to perform strongly, the challenges in Europe and China highlight the uneven nature of global recovery. As the world navigates this complex environment, measured and collaborative policy responses will be crucial for ensuring sustainable growth and stability.

(With agency inputs)

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