ISLAMABAD: Despite conflicts, debt pressures, and climate shocks, the year 2025 proved more resilient than expected for the global economy, according to a report released by the World Bank.
The review “2025: Resilient Economies, Smart Development, and More Jobs” says growth held at around 2.7 per cent as countries adapted through digitalisation, AI adoption, and diversified supply chains.
Against this backdrop, the World Bank Group made job creation its central mission, recognising jobs as the strongest path out of poverty and instability. With 1.2bn young people entering the workforce over the next decade, the bank focused on five high-impact sectors: energy and infrastructure, agribusiness, health care, tourism, and manufacturing.
By mobilising private capital and partnerships, 2025 laid the groundwork for inclusive, job-driven growth heading into 2026, according to the review.
The year saw countries grapple with a cascade of shocks and economic turbulence, from ongoing conflicts and economic uncertainty to catastrophic weather that tested communities. Yet in the face of these challenges, nations proved far more resilient and adaptive in 2025 than predicted.
2025 saw wild swings in the global economy. Initial optimism shifted to widespread pessimism as countries confronted slowing global growth, geopolitical tensions, policy uncertainties, rising trade frictions, and persistent debt. For the third year in a row, developing economies paid more in debt service than they received in new financing, hitting a 50-year high in debt outflows during 2022-2024, the bank says.
Despite these major challenges, the global economy performed better than many had expected, particularly in developing countries. Global growth surpassed forecasts even amid tariffs and trade tensions, with some relief as bond markets reopened, and interest rates began to ease.
Decreasing trade-policy uncertainty and stable energy markets also contributed. Forecasters now anticipate growth of about 2.7 per cent for this year — generally in line with expectations at the start of 2025. This resilience was fueled by rapid adaptation, including the shifting of supply chains, fast adoption of digital technologies like artificial intelligence (AI), and diversified markets.
“This year, we saw strong momentum. Private capital mobilisation (PCM) rose from $47bn to $67bn in just two years. Total commitments, including PCM, reached $186bn, and we raised another $79bn from private investors through bond issuances. We’re also working to triple our guarantee business by 2030. We’ve centralised our guarantee platform in our Multilateral Investment Guarantee Agency (MIGA), making it easier for clients and helping boost our guarantee issuances,” says the review.
Published in Dawn, December 28th, 2025
