2025 Economic Outlook: Modest Recovery Expected for Global Economies | Capital Economics Analysis
As we near 2025, Capital Economics analysts anticipate a slight uptick in most major global economies after a challenging second half of 2024. Key themes shaping advanced economies include the normalization of inflation and looser monetary policy, providing support for GDP growth. China's recovery is also forecasted to strengthen with fiscal stimulus, despite lingering trade tensions with the U.S. and allies.
However, risks loom on the horizon, with concerns about persistent inflation in Europe, political transitions in various countries, and the rise of isolationist trade policies and anti-immigration sentiments. While recession fears persist, Capital Economics remains cautiously optimistic, pointing to positive trends in credit, employment, retail sales, and construction. They predict a "soft landing" for 2025, but continue to monitor evolving risks closely.
In conclusion, the economic landscape for 2025 is one of cautious optimism, with potential challenges balanced by positive indicators. Stay informed and prepared for potential market shifts to protect your financial well-being in the coming year.