Unpredictable change will sweep through America, while old problems, from war to inflation, are likely to afflict other countriesThe global economy is entering the new year with rising geopolitical tensions looming over its prospects, as the world’s leading central banks attempt to cut interest rates after the worst inflation shock in decades.Donald Trump’s second term in the White House is expected to dominate the economic agenda. Global trade tensions are on the horizon as the president-elect threatens to impose sweeping tariffs on US imports. Continue reading...
The article outlines five key charts predicting the global economic outlook for 2025, primarily focusing on the impact of a potential second Trump term.
Main Conceptual Ideas:
1. Trump's Trade Wars 2.0: A second Trump term is predicted to escalate global trade tensions with increased tariffs on US imports, potentially causing significant ripples through the world economy.
2. Uncertainty and Investor Nervousness: While promises of tax cuts and deregulation might boost the US stock market, concerns about a widening US budget deficit remain. The outcome of Trump's trade policies and possible global economic fallout are key concerns for investors.
3. Slowing Global Growth: Predictions suggest a slowdown in economic growth for G7 nations in 2025, with the UK's growth particularly being challenged by contraction and inflation.
4. Challenges to UK Growth: The UK faces hurdles to economic recovery, including a large population of "economically inactive" individuals and the risk of inflation outpacing growth due to high interest rates.
5. Limited Policy Options: Unlike the post-2008 financial crisis period when low interest rates fueled growth, 2025 is predicted to have a different economic landscape, making it more difficult for governments to stimulate the economy through traditional means.
Overall, the article paints a picture of a global economy facing significant headwinds in 2025, primarily driven by the potential for renewed trade wars and economic uncertainty fueled by a second Trump term.
The article outlines five key charts predicting the global economic outlook for 2025, primarily focusing on the impact of a potential second Trump term. Main Conceptual Ideas: 1. Trump's Trade Wars 2.0: A second Trump term is predicted to escalate global trade tensions with increased tariffs on US imports, potentially causing significant ripples through the world economy. 2. Uncertainty and Investor Nervousness: While promises of tax cuts and deregulation might boost the US stock market, concerns about a widening US budget deficit remain. The outcome of Trump's trade policies and possible global economic fallout are key concerns for investors. 3. Slowing Global Growth: Predictions suggest a slowdown in economic growth for G7 nations in 2025, with the UK's growth particularly being challenged by contraction and inflation. 4. Challenges to UK Growth: The UK faces hurdles to economic recovery, including a large population of "economically inactive" individuals and the risk of inflation outpacing growth due to high interest rates. 5. Limited Policy Options: Unlike the post-2008 financial crisis period when low interest rates fueled growth, 2025 is predicted to have a different economic landscape, making it more difficult for governments to stimulate the economy through traditional means. Overall, the article paints a picture of a global economy facing significant headwinds in 2025, primarily driven by the potential for renewed trade wars and economic uncertainty fueled by a second Trump term.
