WORLD ECONOMY AT TURNING POINT

Global Developments

The world economy is facing a period of reorientation. While some countries are benefiting from reforms and strong domestic demand, others are confronted with significant challenges. Geopolitical uncertainties and structural changes require policymakers to take targeted action in order to achieve sustainable growth and economic stability. Global forecasts predict moderate growth (+2.9%) and a slight decline in the global economy compared with the previous year (3.0%). This development is influenced by geopolitical tensions, structural changes and ongoing uncertainties on the financial markets.

Regions with expected growth

USA: The US economy shows signs of recovery, supported by rising real incomes and robust domestic demand. For 2025, experts expect GDP growth of 1.5% and stable economic development.

India: India continues its growth trajectory, benefiting from structural reforms and strong domestic demand. According to expert estimates, India’s economic output could more than double within the next decade, making the country an attractive destination for investment.

South America: Economic expansion is expected in countries such as Brazil and Argentina. Growth of 2.2% is forecast for 2025, supported by dynamic agriculture and robust services.

Regions with expected challenges

China: Although the Chinese economy continues to grow, real GDP growth is expected to be moderate at 4.5% in 2025 – the lowest in a decade. The main challenges are reluctance to buy and saturation tendencies in the automotive industry.

Germany: The German economy is expected to grow by a minimum of 0.1% in 2025. This would be the third year in a row without significant economic growth. The main causes are high wage costs, taxes and energy prices, bureaucracy and weakening industrial production. 

Sub-Saharan African countries: The region is facing ongoing economic difficulties. Although GDP growth of 4.0% is expected for 2025, this is below the historical average. Causes include severe weather events and infrastructural deficits.