ISLAMABAD, Pakistan — The global economy has demonstrated unexpected resilience in 2025, navigating a year marked by geopolitical tensions, rising debt burdens, climate-related disasters, and trade disruptions, according to a new report released by the World Bank. Despite widespread fears of a slowdown, the report highlights that countries around the world managed to sustain growth and mitigate deeper economic downturns.
Titled “2025: Resilient Economies, Smart Development, and More Jobs”, the World Bank’s review shows that global growth remained around 2.7 per cent, largely in line with forecasts made at the start of the year. The report notes that many nations adapted swiftly to cascading economic and environmental shocks, leveraging digitalisation, supply chain diversification, and emerging technologies like artificial intelligence to sustain economic activity.
A major focus of the report is job creation as a key driver of economic stability and poverty reduction, particularly as more than 1.2 billion young people are expected to enter the global workforce over the next decade. The Bank stressed the importance of investing in sectors with high employment potential, including energy infrastructure, agribusiness, healthcare, tourism, and manufacturing, to ensure inclusive and sustainable growth heading into 2026. The review also highlights a significant increase in private capital mobilisation, which rose from $47 billion to $67 billion over two years, with total commitments reaching $186 billion and an additional $79 billion secured through private investment channels. This infusion of private investment has strengthened economic activity and supported development priorities, providing a buffer against global uncertainties.
While the global economy’s performance exceeded many pessimistic expectations, the World Bank cautioned that structural challenges persist, especially in developing and low-income countries where debt servicing costs are rising and long-term development goals remain uneven. Policymakers are urged to focus on resilience-building strategies, promote sustainable investment, and enhance workforce readiness to navigate future economic shocks effectively.
Overall, the World Bank report underscores that despite the complex and challenging global environment of 2025, nations that invested in innovation, inclusive growth, and strategic infrastructure have been able to maintain stability, offering lessons for sustained resilience in the years to come.
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