As 2025 unfolds, the global economy balances transformation and turbulence. Growth is projected to decrease from 3.2% in 2024 to 3.0% in 2025 due to slowdowns in major economies such as China, the US, France, and Germany. However, easing inflation and supportive monetary policies may help sustain economic activity, with central banks likely to continue cutting interest rates. Policy shifts under Trump 2.0 could introduce inflation volatility, slowing rate cuts and affecting trade, investments, and employment.
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Amid these uncertainties, organizations must seize opportunities in supply chain diversification, digitalization, sustainability, and high-tech investments. Emerging markets, including India, ASEAN (Association of Southeast Asian Nations), and GCC (Gulf Cooperation Council) nations, are set to lead growth, driven by strong consumption and rising capital investments.
Frost & Sullivan’s latest economic analytics webinar identified key transformative trends shaping 2025, equipping businesses with a roadmap to navigate risks and maximize opportunities in the global economy.
Featured Experts:
- Neha Anna Thomas – Associate Director, Economic Analytics, Frost & Sullivan
- Rituparna Majumder – Industry Principal, Economic Analytics, Frost & Sullivan
- Nikita Talnikar – Senior Research Analyst, Economic Analytics, Frost & Sullivan
Key Takeaways from the Discussion:
- Global Economic Growth Moderation: The global growth rate is projected to slow from 3.2% in 2024 to 3.0% in 2025 due to economic slowdowns in key regions.
- Impact of Trade Wars: Prolonged tariff disputes, especially in the automotive and electronics sectors, could drive up costs for US consumers, with end-product prices potentially rising by double digits.
- Energy Market Dynamics: Lower oil prices, driven by increased US oil extraction and production, will create fiscal benefits for oil-import-reliant economies.
- Friend-Shoring Gains Momentum: The shift in global supply chains, driven by China+1 and Mexico+1 strategies, will benefit ASEAN, Poland, and India as companies seek alternative manufacturing hubs.
- Supply Chain Reorientation: Realigning supply chains will boost intra-Asia and intra-Europe cooperation, presenting opportunities for trade partnerships and regional economic growth.
“Global growth is set to trend downward to ~3.0% in 2025, as US trade wars and inflation risks rattle key economies, with potential oil price declines offering only a fleeting reprieve. Persistent supply chain disruptions will see firms regionalizing trade and collaborations, fostering opportunities in green energy, mobility, semiconductors, and AI segments. Given this complex economic and trade backdrop, businesses must adopt agile and real-time data driven decision-making to outmaneuver uncertainty and remain ahead of the curve.”
Nikita Talnikar, Senior Research Analyst, Economic Analytics, Frost & Sullivan
“Global growth is set to trend downward to ~3.0% in 2025, as US trade wars and inflation risks rattle key economies, with potential oil price declines offering only a fleeting reprieve. Persistent supply chain disruptions will see firms regionalizing trade and collaborations, fostering opportunities in green energy, mobility, semiconductors, and AI segments. Given this complex economic and trade backdrop, businesses must adopt agile and real-time data driven decision-making to outmaneuver uncertainty and remain ahead of the curve.”Is Your Organization Ready for 2025?
With economic shifts on the horizon, businesses that proactively invest in digital transformation, sustainable practices, and supply chain adaptability will be best positioned for success. Staying ahead of global trends and leveraging emerging market opportunities will be key to navigating uncertainties and driving long-term growth.
