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GlobalData Forecasts an Acceleration in Global Economic Growth In 2025 – Image Credit Unsplash
- ‘sGlobalData expects the global economy to grow by 2.54% in 2025 despite geopolitical hurdles and possible policy shifts.
- Economic growth in the Americas is projected to slow down, while growth in Europe, Asia-Pacific, and the Middle East and Africa is predicted to increase.
GlobalData forecasts an acceleration in global economic growth in 2025. Despite challenges such as geopolitical tensions and potential shifts in policy, the global economy is projected to grow by 2.54%, up from 2.52% growth in 2024.
GlobalData’s “Global Macroeconomic Outlook—Q4 2024 Update” report predicts increased growth in Europe, Asia-Pacific, the Middle East and Africa (MEA). As global inflationary pressures ease, central banks worldwide have adopted accommodative monetary policies. These are expected to stimulate consumption and investment, supporting overall global growth. However, growth in the Americas is projected to slow amid uncertainties around President-elect Trump’s policies.
Structural challenges such as low productivity and outdated infrastructure continue to limit growth in Latin America. The global inflation rate is expected to decrease from 5.80% in 2023 to 4.28% in 2024 and further decline to 3.45% in 2025.
Global merchandise trade grew by 2.3% annually in H1 2024, driven by easing inflation and rate cuts in advanced economies. Disruptions in the Red Sea due to the Israel-Hamas conflict led to a 66% drop in Suez Canal traffic and higher shipping costs.
The article also highlights the potential influence of political shifts on economic outcomes. The 2024 global election cycle brought about notable political shifts across regions, including Trump’s victory, which may lead to more protectionist US policies impacting global trade.
GlobalData posits a cautiously optimistic outlook for 2025, with growth hinging on central bank policies and geopolitical developments. The global economy remains fragile, with the potential for either acceleration or a slowdown in growth.
Discover more at GlobalData.
