Global GDP Growth Data Shows 4% Decline in China's Economy

The global economy projected to face slowdown in terms of gross domestic product (GDP) growth in 2025 characterised by mounting uncertainty, according to a Barclays Bank report.

The report predicted that GDP growth to slow to three per cent in 2025, down from 3.2 per cent in 2024.

"Historically, this level of economic expansion, which is slightly below the long-term trend, has coincided with flattish earnings growth," the report stated as quoted by ANI.

The report emphasised on strategic planning on environmental, social, and governance (ESG) factors to navigate this complex situation. It said that as sustainability is becoming more mainstream and investors are increasingly having to consider ESG factors in how companies operate to make better-informed investment decisions.

The report said that the Chinese economy's outlook for 2025 is not bright as it is under scrutiny, with GDP growth forecasts declining to 4.0 per cent for 2025.

The report further stated that the Eurozone's economic prospects will also remain clouded by contractionary fiscal policies with an anticipated GDP growth at around 0.7 per cent. It also highlighted the need for a increased investments in the region to enhance competitiveness.

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However, the report projected a robust economic growth in the United States with forecast suggesting a two per cent expansion in 2025. This growth is attributed to a combination of monetary policy adjustments and a resilient labour market. The UK is also navigating a new economic paradigm, with growth projected at 1.2 per cent as it adapts to post-Brexit realities.

The report urged the investors remain selective and focus on quality assets amid shifting market dynamics.

GDP Growth Projection for India in 2025

The International Monetary Fund (IMF) had kept its growth forecasts for India unchanged at 7 per cent and for FY25. According to IMF, the growth will then go down to 6.5 per cent for FY26, as it held that pent up demand accumulated during the pandemic has been exhausted as the economy “reconnects” with its potential growth.

India, which is now the fifth largest economy in the world, is also projected by the IMF to move one spot upward at fourth by 2025 surpassing Japan. India will do so with a nominal GDP of $4,340 billion.

Earlier, Reserve Bank of India (RBI), in its last monetary policy committee (MPC) in October also kept its real GDP growth for 2024-25 to 7.2 per cent unchanged. It cited robust consumption and investment momentum as well.