| IMF forecasts stable but modest growth and falling inflation in 2025. | OECD stresses the need for bold policy actions and reforms to address global risks. | Goldman Sachs expects strong growth, with emerging economies, especially India, leading the way. |
The IMF cites a period of ‘stable but underwhelming’ global growth for the year ahead. They also predict a return to a more neutral monetary policy stance as inflation in most economies steadily falls towards target in 2025.
We aren’t in the habit of making predictions, but here is a selection from some reputable banks, organisations and asset managers for your consideration:
‘CPI inflation is expected to increase to around 2.75% by the second half of 2025 as weakness in energy prices falls out of the annual comparison, revealing more clearly the continuing persistence of domestic inflationary pressures’ – Bank of England
‘Even though the global economy is expected to remain resilient, risks and uncertainties are high. In this challenging environment, decisive policy actions, including through bold structural reforms, and multilateral dialogue are essential to address these risks and to continue fostering a rise in growth and living standards across the globe’ – OECD
‘Heading into 2025, the global economy appears to have reached a balance: Moderate growth, disinflation and continued monetary easing could all bode well for markets, complemented by the potential for greater deregulation. But, with looming uncertainty in the US around the policies of an incoming Trump administration, as well as their potential impact, Morgan Stanley Research says that finding the right window for opportunity will be key in the next year’ – Morgan Stanley
‘The outlook for the global economy portends a more moderate growth environment over the next 15 years compared to prior decades. Economic growth in both emerging and mature economies is set to slow, but emerging economies will continue to be the biggest drivers of economic expansion, with India outperforming China’ – The Conference Board
‘Goldman Sachs Research forecasts another solid year of global economic growth in 2025. Our economists project the US will outperform expectations while the euro area lags behind amid fresh tariffs that are anticipated from the Trump administration’ – Goldman Sachs
The bottom line
Today’s world is unpredictable, we can you help take control with a long-term financial strategy, so you can face the future with confidence.
Here’s to a happy, healthy and prosperous 2025!
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. It is important to take professional advice before making any decision relating to your personal finances. This document does not provide individual tailored investment advice and is for guidance only.
All details are believed to be correct at time of writing – 04 December 2024.
