Goldman Sachs: 2025 is a year of financial improvement and American growth amid geopolitical challenges
Goldman Sachs bank statement The American global financial institution highlighted its expectations for the global economy in 2025, from an improvement in financial conditions with additional reductions in interest rates to the continuation of geopolitical concerns, as well as the superiority of the American economic performance over the rest of the developed countries.
Goldman Sachs Bank explained in its report The seven most prominent economic forecasts include real global GDP growth of 2.7% in 2025, supported by increasing household disposable income and easing financial conditions; The bank also expects the US GDP to grow by 2.4%, driven by income growth and accommodative financial measures, and core inflation is expected to calm to 2.4% by December 2025.
As for the US Federal Reserve’s policy, it is expected to reduce interest rates. Three times in 2025, with an initial cut of 25 basis points next March, followed by additional cuts next June and September.
With regard to the euro area, the bank expects output growth to be The euro zone’s GDP is lower than expectations by 0.8%, due to structural challenges in the manufacturing sector, energy pressures and competition from China.
The report pointed out that the European Central Bank is expected to reduce interest rates by 25 basis points at a time until it reaches… To 1.75% by July 2025.
Regarding China, Goldman Sachs added that there are expectations that economic growth in China will slow to 4.5% in 2025, in light of the difficulty of confronting weak domestic consumption. And the challenges of the real estate market and the impact of American tariffs.
Finally, Goldman Sachs warned of the risks associated with developments in American and geopolitical policies, especially with Trump assuming the presidency of the country, including the possibility of imposing higher customs duties on China and cars and reducing immigration, in addition to the resulting risks. About the conflict in the Middle East, the war in Ukraine, and US relations with China.
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