Global Economic Slowdown

Global GDP growth is projected to decelerate, impacting investment returns.

Themes

Navigating Global Uncertainty

Timeframe

near-term

Subcategories

Economic Growth Global Trade Investment Strategies Risk Management

Impact areas

Commodities Fixed income Global equities

Detailed Analysis

The global economy is expected to experience slower growth in 2025 compared to 2024. This slowdown is anticipated to impact various regions, including the US, Eurozone, China, and the UK. The report suggests that this subdued growth environment will likely lead to a period of lower returns for investors. The interconnectedness of global economies means that challenges in one region can ripple through others, further complicating the investment landscape.

Context Signals

US GDP growth projected to slow to 2.1% in 2025 from 2.7% in 2024. Eurozone GDP growth projected at 0.7% in 2025. China GDP growth projected to slow to 4.0% in 2025 from 4.8% in 2024.

Edge

Investors may need to adjust their expectations for returns and consider strategies that prioritize capital preservation. Diversification across asset classes and geographies will be crucial to mitigate risks. Opportunities may exist in specific sectors or companies that are well-positioned to withstand the slowdown.

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