Page 7 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Economy in Focus

1. A snapshot of the global economy

Global economic growth
• According to the latest World Economic Situation and Prospects (WESP) update, global growth is

forecast to slow to 2.4 per cent in 2025, down from 2.9 per cent in 2024 and 0.4 percentage points
below the January forecast.

• This downward revision primarily reflects heightened trade tensions and intensified policy
uncertainty, which are expected to strain global supply chains, raise production costs, and delay critical
investment decisions, besides fueling financial market volatility.

Figure 1: Growth of economic output (%)

Source- UN

Developed economies are forecasted to grow at 1.3 per cent in 2025, down from 1.8 per cent in 2024,
reflecting weakening private investment, trade tensions, and ongoing policy uncertainty.

• The United States is projected to grow by 1.6 per cent in 2025, significantly lower than the 2.8 per
cent recorded in 2024. This slowdown is attributed to weaker domestic demand, with heightened
policy uncertainty projected to dampen private investment.

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