Worldwide GDP is forecast to expand 2.7% next year on an annual average basis, as another solid year of global economic growth.

The US will outperform expectations while the euro area lags behind amid fresh tariffs that are anticipated by the Trump administration. US GDP is projected to increase by 2.5% in 2025, well ahead of the consensus at 1.9%. The euro area economy is expected to expand by 0.8%, compared to the consensus of 1.2%. The eurozone economy continues its modest rebound from a borderline recession centered on Germany. GDP growth reached 1.6% quarter on quarter in Q3, also accompanied by strong services spending and labor demand. In China, growth is running below the official 5% target for the year, reflecting the ongoing effects of the property sector hangover. The policy response remains measured and consumer confidence and spending are still weak. Inflation has continued to trend down and is now within striking distance of central bank targets. And most central banks are well into the process of cutting interest rates back to more normal levels. The re-election of US President Donald Trump is predicted to result in higher tariffs on China and on imported cars, much lower immigration, some fresh tax cuts, and regulatory easing.