Global Economic Trends 2025: Insights From The World Economic Forum

25th June 2025, Kathmandu

This issue of the World Economic Forum’s 3 Economic Trends newsletter delves into critical global shifts shaping equitable growth, markets, and economic policy.

Global Economic Trends 2025

We explore China’s transformative economic journey, the compelling economic case for gender parity, and the emerging challenges and opportunities of the longevity economy.

1. AMNC25: China’s 40-Year Economic Transformation Blueprint

The World Economic Forum’s Annual Meeting of the New Champions, or Summer Davos, is currently underway in Tianjin, China, bringing together over 1,700 leaders. At the forefront of discussions is China’s remarkable 40-year economic transformation blueprint. Between 1980 and 2015, China’s economy experienced an average annual GDP growth exceeding 9%, evolving from an impoverished agrarian nation into a technological superpower. This dramatic shift offers invaluable lessons for global economic development.

While market liberalization is often cited as the sole driver, China’s success stemmed from a sophisticated strategy blending state guidance with targeted reforms. The nation adopted a “dual-track approach,” maintaining state control over strategic sectors while gradually liberalizing light industries.

Key factors behind this unprecedented growth include:

Strategic Sequencing: Agricultural reforms, such as the Household Responsibility System, were implemented first, boosting food production and building confidence before industrial sectors were tackled. Special Economic Zones (SEZs) like Shenzhen served as vital laboratories for market reform and foreign investment.

Infrastructure as Catalyst: Massive investments in transportation, telecommunications, and urban development significantly reduced costs and facilitated trade. China now boasts the world’s largest expressway network and an astounding 4.25 million 5G base stations, vastly surpassing many developed nations.

Human Capital Revolution: From 1995 to 2015, China dramatically increased its college-age population in post-secondary education from a mere 8% to over 50%. This rapidly expanding skilled workforce was crucial for moving up the global value chain.

The digital revolution further propelled growth, with Chinese tech entrepreneurs establishing global giants, supported by state-led “informatization” and “Internet Plus” campaigns. Today, China is focused on developing “new quality productive forces,” prioritizing innovation over sheer expansion.

2. Why Gender Parity Can’t Wait, According to Leaders

Momentum towards achieving gender parity globally has grown, with 68.8% of the global gender gap now closed, as reported by the World Economic Forum’s Global Gender Gap 2025. However, full parity remains a distant goal, estimated to be 123 years away.

Six prominent leaders, all Sprint Champions for the World Economic Forum’s Global Gender Parity Sprint, shared their perspectives on why investing in gender parity is not just a moral imperative but a sound economic strategy, and how it can be practically advanced:

Bonnie C. Chan (Hong Kong Exchanges and Clearing Limited (HKEX)) highlights that “Businesses that incorporate diverse perspectives will be more resilient and agile in navigating challenges and capturing opportunities.”

Michael Ensser (Egon Zehnder) emphasizes that “Inclusive teams are more innovative, make better decisions, and are better equipped to navigate disruption. They draw on a range of perspectives, unlock deeper insight, and anticipate risk more effectively.”

Sara Pantuliano (ODI Global) asserts: “Advancing gender parity is not just a moral imperative, it’s an economic and social necessity. When women have equal access to resources and opportunities, they have greater freedom to realise their full potential, including through paid employment.”

These insights underscore the undeniable economic benefits of gender equality, from increased resilience and innovation to unlocking human potential.

3. Reimagining Work for the Longevity Economy

Over the next two decades, the global population over 65 is projected to more than double, reaching 1.6 billion. This demographic shift is giving rise to what economists term the “longevity economy,” presenting both unprecedented challenges and significant opportunities. With global life expectancy having increased by a decade since 1980, retirement periods, which traditional pension systems were designed to cover for approximately 10 years, now extend much longer.

This demographic transformation necessitates systemic reforms across three crucial areas, as highlighted by Annette Mosman (APG):

Pension System Evolution:

The shift from “defined benefit” to “defined contribution” schemes has accelerated, with defined contribution assets now comprising 59% of total pension assets, up from 40% in 2004. This transition links retirement payouts directly to market performance and enables younger generations to accumulate retirement funds more effectively.

Investment Diversification Imperative:

As advanced economies transition from globalization-driven growth to technology-led expansion, pension funds must strategically tap into diverse global markets. Asia, for instance, is projected to see over a billion people move from rural to urban centers, fueling substantial growth in real estate, logistics, digital, and energy markets.

Workforce Reimagination:

There’s a growing trend of increased labor force participation among older workers. The participation rate for workers aged 55-64 has risen by 7 percentage points since 1992. Japan leads this trend, with 80% of its workers expressing a desire to continue working past traditional retirement age, resulting in one in four people over 65 remaining employed.

These trends highlight the urgent need to adapt our economic and social systems to effectively harness the potential of an aging global population.

For more: Global Economic Trends 2025