ACCA’s 2025 Global Economic Outlook
- Fahad Bin Khalid
- February 13, 2025
- 11:41 am
- 204
- Business
Global economic outlook 2025 presents a mixed picture with economic uncertainty, AI developments, and shifting trade policies. The ACCA report highlights key trends, risks, and CFO insights shaping the year ahead.
Economic Prospects for 2025
ACCA’s 2025 Global Economic Outlook examines growth patterns, inflation trends, and geopolitical risks. Economist Charles Goodhart predicts strong US economic performance, while Europe and the UK may face challenges. He remains optimistic about India’s economic growth.
Goodhart also expects inflation to decline in the short term but rise again in 2026 and 2027. He believes AI will not instantly fix productivity issues but could help reduce income inequality within countries.
Key Trends to Watch
1. AI and Productivity
The rise of AI-powered agents could boost productivity, but businesses must integrate hybrid technologies for long-term success. AI is not a standalone solution but a tool for innovation.
2. Geoeconomic Fragmentation
The global economic outlook 2025 warns of rising trade restrictions. Changes in US trade policy could reverse globalization and impact global supply chains.
3. Climate and Green Policies
Economic and political shifts in developed nations could weaken climate commitments. This retreat may slow sustainability efforts, with long-term environmental consequences.
CFO Insights on Economic Risks
The ACCA report features seven CFOs from different industries and regions. They express concerns over inflation, geopolitical instability, and cybersecurity threats.
US trade policies, AI disruption, and climate change also remain major business concerns. CFOs emphasize the need for agility, innovation, and resilience in navigating economic uncertainty.
Conclusion
The global economic outlook 2025 reflects a world of uncertainty. Businesses and policymakers must adapt to rapid economic, political, and technological shifts. Strategic planning and innovation will be crucial for success.
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