Global economy set for reasonable growth in 2025 according to ACCA, but uncertainty abounds
Feb 04, 2025 - financialpost.com
The article discusses the 2025 Global Economic Outlook report by ACCA, highlighting significant uncertainty in the global economy. Economist Charles Goodhart suggests that while the US economy may perform well, Europe and the UK could face challenges, with India showing optimistic prospects. Inflation is expected to decrease in the short term but may rise again in 2026 and 2027, particularly in the US. The report identifies three key trends for 2025: developments in AI, rising geoeconomic fragmentation, and a retreat from green policies due to cost-of-living pressures and political shifts.
The report also includes insights from CFOs across various industries, emphasizing the need for agility and innovation amid global uncertainties. Risks such as US trade policy, geopolitics, inflation, climate change, and cybersecurity are highlighted. AI remains a priority for businesses, recognized for its potential and disruptive challenges. The article concludes with a call for understanding the interplay of economic, political, and technological factors to navigate the uncertain landscape effectively.
Key takeaways:
The global economy is expected to grow at a reasonable pace in 2025, but significant uncertainty remains.
Key risks include potential changes in US trade policy, geopolitical challenges, and rising government bond yields.
AI is seen as a potential productivity booster, but hybrid solutions with other technologies are crucial for sustained value.
There is a trend of retreating from green policies due to cost-of-living pressures and political shifts in developed economies.
