The global economy is poised for "reasonable, but not particularly exciting" growth this year, yet uncertainties abound, according to a new report from the Association of Chartered Certified Accountants.
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"The global economy should continue to grow at a reasonable, but not particularly exciting pace in 2025," said ACCA chief economist Jonathan Ashworth in the report. "But it is a world marked by significant uncertainty. The risks are predominantly on the downside, amid potential changes in U.S. trade policy, a challenging geopolitical backdrop, political uncertainty and rising government bond yields."
Economist Charles Goodhart suggested the U.S. economy may perform strongly in 2025, but Europe and the U.K. could struggle. Goodhart believes inflation could fall in the short run but will probably rebound in 2026 and 2027.
"My guess, on which I would not place a great deal of weight, is that the U.S. economy will do very well in 2025," he said. "Both Europe and the U.K. will do relatively badly. Not only will higher U.S. import tariffs be a problem for Europe, but higher U.S. tariffs on imports from China will probably mean that China will want to export more of its goods to Europe, at a time when Germany's business model is already under extreme stress."
The emergence of AI agents promises new productivity breakthroughs, but hybrid solutions integrating other technologies will be crucial for sustained value, according to the report.
The ACCA interviewed seven CFOs from across the globe in various sectors for the report. While the interviewees did not appear to be expecting a notable slowing in global growth in 2025, there was some caution given the significant global uncertainty, including that related to the policies of President Trump.
"Technology, particularly AI, continues to be a priority, with businesses recognising both its potential and disruptive challenges," said the report. "A wide range of risks were highlighted, including inflation (and changes in the price of important commodities), policy changes in large economies, cybersecurity, exchange rate movements, supply chains, climate change, social tensions, geopolitics, and fast-changing consumer habits. The latter two were also cited as opportunities. A recurring theme among CFOs is the need for agility, innovation and resilience in navigating an uncertain economic landscape."
The ACCA also releases a quarterly
