Page 7 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Economy in Focus

1. A snapshot of the global economy

Global economic growth
• According to IMF, global real GDP grew by 0.7 percent quarter-on-quarter in 2025Q1 following
growth of 1.0 percent in the previous quarter, with slowdowns in all major geographic regions.
The rate was close to the pre-pandemic average (from 2012Q1) of 0.8 percent.

• Asia continued to provide the main impetus, increasing by 1.1 percent and contributing 0.6
percentage points to global growth.

• Europe also saw more muted gains than in the previous quarter, contributing 0.1 percentage
points to World growth.

• Expansion in the Americas slowed to 0.2 percent with the region making only a marginal
contribution to overall growth. Africa grew by 0.7 percent, while in Oceania, GDP grew by 0.3
percent, with each region also making marginal positive contributions.

Figure 1: Global Growth in Q1 2025-26 (%)

August 2025 Source- IMF
• By economic classification, quarter-on-quarter real GDP growth in Emerging Market and

Developing Economies increased 1.1 percent in 2025Q1, down from 1.3 percent in 2024Q4. This
group accounted for the majority of World GDP growth (0.7 percentage points).

• Growth in Advanced Economies slowed to 0.2 percent in 2025Q1, versus 0.5 percent in 2024Q4,
and contributed 0.1 percentage points to overall growth.

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