The world economy is a complex and closely linked system of countries, regions, organizations and global markets. As of 2025, some of the prominent trends and issues of the world economy can be summarized as follows.
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Overview of the world economy in 2025
1. Global growth is recovering but diverging
The IMF and the World Bank forecast global growth in 2025 at around 3%, but there is a clear differentiation between groups of countries:
The US and developed countries tend to grow stably.
China faces slowing growth, affected by the real estate market and geopolitical tensions.
Europe recovers slowly due to energy pressure, inflation and war costs (Russia-Ukraine).
Developing countries are affected by high public debt, currency devaluation and climate change.
Key drivers
2. Inflation & monetary policy
After a period of strong interest rate hikes by central banks (2022–2024), 2025 will see:
A trend of interest rates falling or remaining at a stable high level.
The goal of controlling inflation to a safe threshold (~2% in developed countries).
The US dollar remains strong, putting pressure on economies borrowing in USD.
3. Global supply chains and trade
Restructuring of supply chains after the COVID-19 pandemic and the US-China trade war.
Shifting production to countries such as Vietnam, India, Mexico (the “China +1” strategy).
Increasing protectionism: tariffs, export restrictions, localization regulations.
Green economy and energy transition
4. Climate and sustainability transition
Investment in renewable energy, battery technology, electric transport.
Growth of carbon credit markets, cross-border carbon taxes (CBAM).
Developing countries face pressure to "go green" but lack capital and technology.
Technology & digital transformation
5. Artificial intelligence (AI) and automation
AI boosts productivity, but also changes the global labor structure.
The job market is changing rapidly, requiring new skills and new social security policies.
Many countries are investing heavily in national AI, such as the US, China, India, and South Korea.
Key risks and challenges
6. Geopolitics and economic war
US-China strategic competition.
Regional tensions: Russia-Ukraine, Taiwan, Middle East.
Economies must balance security - trade - technology.
7. Public debt & financial crisis
Many poor countries face debt crises, finding it difficult to access cheap capital.
Risk of systemic default in some countries (Sri Lanka, Ghana...).
Increasing role of IMF, World Bank, and regional organizations such as BRICS.
Some long-term trends
Trend Description Fragmented geoeconomy Supply chain decoupling, new blocs emerging Digital economy E-commerce, digital finance, blockchain Banking restructuring Emergence of digital banks, CBDC Regional cooperation ASEAN, EU, AU, Mercosur, BRICS+ increasing role Biotechnology Promoting healthcare, agriculture and energy .
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