Investors Face New Economic Realities in 2025 as Global Growth Moderates

The global economy in 2025 operates under markedly different macroeconomic assumptions than the previous decade, upending traditional investment frameworks built for low-rate, low-inflation environments. Growth is projected at 3.0%, with a marginal uptick to 3.1% expected in 2026—but downside risks loom large.

Persistent inflation and rising borrowing costs are compounding fiscal vulnerabilities, particularly in sovereign debt markets. U.S. inflation remains stubbornly above target even as global price pressures ease. Meanwhile, unprecedented capital flows into AI infrastructure have created concentrated market leadership and valuation concerns.

This new paradigm demands investment strategies emphasizing resilience and sustainability. The old playbook no longer applies as policy frameworks evolve in unpredictable ways. Investors must now navigate a landscape where predictability comes at a premium.