S&P Global Ratings predicts a 3 percent global economic expansion in 2025, with growth slowing in the U.S. and China, while the Eurozone recovers and emerging markets stabilize. The forecast cites easing inflation, resilient labor markets, and strong consumer spending as key factors supporting steady growth.

Meanwhile, it is worth mentioning that emerging markets like India, with its resilient labor force and growing consumer spending, were a beacon of hope. The country’s economic expansion was driven by the government’s efforts to support infrastructure projects, ease inflation, and enhance financial inclusivity. Recently, the agency retained its growth forecast for the Indian economy at 6.8 percent for this fiscal year.

However, geopolitical uncertainties and regional divergences could impact the outlook. The report highlights that economic soft landings and further policy rate cuts will bolster global credit conditions, despite ongoing challenges for the lowest-rated borrowers due to high borrowing costs and geopolitical risks.