Page 8 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• The European Union economy is projected to grow by 1.0 per cent in 2025, unchanged from 2024.
Key challenges include higher trade barriers, elevated policy uncertainty and slowing growth in
the United States and China.

• In Developed Asia and the Pacific, global trade tensions and slowing external demand are
dampening growth prospects for 2025. Japan’s economy is forecasted to grow by 0.7 per cent, as
subdued consumption continues to weigh on the economy. Australia is projected to rebound,
driven by monetary easing from the Reserve Bank of Australia.

Figure 2: Growth of GDP by region & country group

Source- UN

• Growth projections for developing economies have been downgraded, with average growth now
forecast at 4.0 per cent in 2025, compared to 4.2 per cent in 2024, reflecting significant regional
disparities. Africa’s gross domestic product (GDP) is forecast to expand by 3.6 per cent in 2025,
slightly up from 3.5 per cent in 2024, but growth remains constrained by trade tensions, low
commodity prices, and ongoing conflicts.

• South Asia’s growth is forecast to moderate from 6.0 per cent in 2024 to 5.3 per cent in 2025,
with risks stemming from persistent debt challenges, trade uncertainty, and geopolitical tensions.
India is forecast to grow by 6.3 per cent in 2025, supported by strong consumption, public
investment, and services exports.

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