Global growth subdued, with LDCs falling short of 2030 targets

Global economic growth has remained subdued since 2015. After contracting by 3.9 per cent in 2020, global real GDP per capita rebounded by 5.5 per cent in 2021 but slowed to 2.0 per cent in 2023 and 1.9 per cent in 2024 and is projected to stabilize at around 1.9 per cent through 2027. Over 2015–2024, the annual growth averaged 1.7 per cent, down from 2.0 per cent in 2010–2014. The recovery has also been uneven, with the poorest countries proving less resilient, leaving them furthest from the growth needed to advance the goal. Current geopolitical tensions, particularly in the Middle East, continue to strain the global economy through supply chain disruptions, energy price volatility and reduced trade flows, clouding the outlook.

Recovery has also been worrisome in LDCs. Annual GDP growth in LDCs from 7.1 per cent in 2005–2009 to 4.7 per cent over 2015–2024. Though LDCs saw a partial post-COVID-19 recovery to 5.2 per cent in 2022, growth eased again to 3.9 per cent in 2023–2024. Projections suggest growth will reach 4.4 per cent by 2027 – still well short of the 7 per cent target set by the 2030 Agenda.

Digital shift expands financial access, but gaps in inclusion persist

Access to financial services has expanded significantly since 2015, but how access channels are diverging across regions. Between 2015 and 2024, ATMs and commercial bank branches declined globally as advanced economies shifted toward digital services, while developing regions expanded both physical and digital networks. ATM availability nearly doubled in LDCs and landlocked developing countries (LLDCs) and branch networks grew by over 50 per cent in the latter.

Account ownership has also increased: 79 per cent of adults worldwide held an account at a bank, mobile money provider or other financial institution in 2025, up from 74 per cent in 2021, driven largely by digitally enabled accounts accessible via card or mobile phone, making financial services more accessible to millions of people. Formal savings have surged even more sharply, from 24 per cent of adults in 2021 to 40 per cent in 2024. Sustaining progress will require greater access to mobile phones, Internet connectivity and digital infrastructure.

Protection of labour rights has weakened worldwide, leaving many increasingly constrained or unable to organize or bargain collectively, thereby undermining democratic institutions and social dialogue leading also to deepening economic inequality. The global score for freedom of association and collective bargaining rights, measured on a scale of 0 (higher compliance) to 10 (lower compliance), stood at 4.83 globally in 2024, a 6.4 per cent decline since 2015. When each country is given equal weight – rather than adjusting for size of the labour force – the deterioration is even steeper at 12.9 per cent, suggesting the problem is more widespread across countries. Eastern and South-Eastern Asia continued to record the worst scores; Latin America and the Caribbean experienced the largest erosion in rights over the past decade; and LDCs saw the most significant long-term decline.

Progress on reducing child labour, however, offers a more hopeful picture. Since 2020, more than 20 million fewer children are engaged in child labour, reversing a concerning rise between 2016 and 2020. Yet nearly 138 million children remain affected globally – almost 8 per cent of all children worldwide – including 54 million in hazardous work. Asia and the Pacific saw the sharpest decline, with child labour falling from 49 million to 28 million children since 2020. Sub-Saharan Africa continues to bear the heaviest burden, accounting for nearly two thirds of all children in child labour. Globally, agriculture remains the dominant sector for child labour, underscoring the urgent need for stronger social protection, decent work opportunities and accelerated action to meet the 2030 elimination target.

Tourism employment is growing, creating new economic opportunities in remote and rural communities. In 2024, the sector accounted for roughly 1 in every 20 employed persons worldwide, employing 173 million people across 134 countries – a 14.3 per cent increase from 2015. Tourism is especially critical for SIDS, where it accounts for around 11 per cent of employment and has been particularly robust in LDCs and LLDCs, which saw tourism-related employment rise 42.4 per cent and 27.8 per cent, respectively, since 2015.

While employment numbers are encouraging, tourism’s direct contribution to global GDP remains below pre-pandemic levels – 3.5 per cent in 2024 compared with 3.7 per cent in 2015 and a peak of 3.8 per cent in 2019. The shortfall carries greater weight in regions that rely most heavily on tourism, particularly Latin America and the Caribbean, where tourism accounted for 5.6 per cent of GDP in 2024, Eastern and South-Eastern Asia (4.0 per cent) and sub-Saharan Africa (3.9 per cent).