New Delhi, April 17 || India is expected to remain the fastest growing major economy with a 6.5 per cent growth rate in 2025 while global growth is seen as marking a shift towards a recessionary path with the international trading system facing its most serious challenge since the Second World War, according to the latest UNCTAD report.
India has been listed among the countries that are propelling growth with higher government expenditure and monetary policy stimulus in the report titled 'Trade and Development Foresights 2025 - Under pressure: Uncertainty reshapes global economic prospects'.
The report projected China's growth rate at 4.4 per cent, while the US economy is expected to grow at 1 per cent. The growth for the European Union has also been projected at 1 per cent, although France, Germany and Italy are all expected to record below 1 per cent growth. Similarly, Japan's economic growth rate is expected to come down to a mere 0.5 per cent.
"The international trading system is facing its most serious challenge since the Second World War. The transformation in the structure of world trade (UNCTAD, 2024) and the reconfiguration of global value chains have been unfolding over the past decade or so. The repercussions of the current policy shock and global uncertainty are set to accelerate these shifts, thereby making any predictions about the ultimate impact of trade reconfiguration difficult. Yet it is already clear that merchandise trade flows are under intense pressure and will be significantly affected," the UNCTAD report said.