The September 2025 update of the World Economic Situation and Prospects (WESP) provides a mid-year reassessment of global economic trends in light of shifting trade conditions, inflationary pressures, and ongoing geopolitical uncertainty. While the global economy shows slightly stronger resilience than earlier projected, growth remains subdued compared to pre-pandemic levels, with significant disparities between advanced and developing economies. The report also warns that structural vulnerabilities, debt risks, and weak investment flows are constraining progress towards the Sustainable Development Goals (SDGs).
Key Findings & Insights
Growth Outlook Revised Upwards Slightly
The global economy is expected to grow by 2.5 % in 2025 and 2026—a modest upgrade from earlier forecasts but still a slow pace.Lower Than Pre-Pandemic Norms
Forecasts remain below historical averages, signaling persistent structural headwinds.Drivers of the Change
Stronger-than-expected early-year activity, reduced tariffs, and supportive policies in large economies.Persistent Risks & Challenges
Fragile trade, policy uncertainty, high debt burdens, and limited fiscal space in developing countries.Inflation Trends
Inflation is easing overall but remains a risk where tariffs and supply pressures persist.SDG Impact
Weak growth and investment threaten progress on the Sustainable Development Goals.Spotlight on Critical Minerals
Rising demand for minerals key to the energy transition raises governance and sustainability concerns.
