UNITED NATIONS, Jan 10 (IPS) – In recent years, the global economy has made significant progress in addressing inflation, unemployment, and poverty. However, global growth has not yet fully recovered from the effects of the pandemic. This can be attributed to various issues such as climate shocks, conflicts, and geopolitical tensions that disproportionately impact developing nations. Finding solutions to promote economic growth for all is essential to align with the Sustainable Development Goals (SDGs).
“Structural factors like high debt burdens, limited fiscal space, weak investments, and low productivity growth continue to hinder economic prospects for developing countries. Climate change and geopolitical tensions further exacerbate these risks,” stated Under-Secretary-General for Economic and Social Affairs (DESA) Li Junhua.
On January 9, the United Nations (UN) published a report titled World Economic Prospects 2025, detailing the global economic situation and proposing measures to alleviate economic challenges. The report predicts a 2.9 percent increase in economic development in 2025, remaining unchanged from 2024 but still below pre-pandemic growth rates.
While major economies like the US, EU, and Japan have seen gradual recoveries, developing nations continue to face high rates of youth unemployment, poverty, and inflation, contributing to slower economic growth. Youth unemployment remains a significant concern in various regions like Western Asia, North Africa, South Asia, Latin America, and the Caribbean.
Approximately 20 percent of young people in these regions are unemployed, often resorting to informal low-paying jobs due to limited fiscal resources and insufficient job creation. Many young workers lack social protection, hindering their ability to secure stable employment and build a better future.
ILO Director-General Gilbert Houngbo emphasized the importance of decent work for young people’s future and societal well-being. Global inflation rates, though decreasing, remain high in developing countries, hindering economic progress. Poverty levels, especially in Africa, persist despite significant global reductions.
Africa and conflict-affected areas like Gaza face severe economic challenges, with poverty, unemployment, and limited access to basic services becoming increasingly prevalent. Addressing the climate crisis is crucial for global economic growth, with estimates suggesting a 20 percent reduction in average global incomes due to greenhouse gas emissions and extreme weather events.
Global cooperation, technology integration, and renewable energy initiatives are vital for sustainable economic growth, particularly in developing nations. Efforts to combat climate change and boost renewable energy infrastructures can drive economic progress and create a more sustainable future.
IPS UN Bureau
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