Goldman Sachs Research anticipates another year of steady global economic growth in 2025, with the U.S. economy expected to surpass forecasts, while the eurozone struggles amid new tariffs likely to be imposed by a re-elected Trump administration.
The firm projects global GDP to grow by 2.7% on average next year, aligning with the estimated growth for 2024 and slightly exceeding the consensus forecast from Bloomberg economists.
For the U.S., GDP is forecasted to rise by 2.5%, significantly above the consensus expectation of 1.9%. In contrast, the eurozone is predicted to grow at a modest rate of 0.8%, falling short of the consensus estimate of 1.2%.
China’s economy is projected to grow by 4.0%, while India is expected to lead major economies with an impressive 6.7% GDP growth.
Jan Hatzius, Chief Economist at Goldman Sachs Research, highlighted these projections in the report titled “Macro Outlook 2025: Tailwinds (Probably) Trump Tariffs.” He noted that global labor markets have stabilized and inflation has continued to decline, nearing central banks’ targets. Additionally, many central banks are well into the process of reducing interest rates to more typical levels.
The U.S., the world’s largest economy, is set to outperform other developed nations for the third consecutive year. Analysts predict that a second term for President Donald Trump could bring higher tariffs on Chinese goods and imported cars, lower immigration levels, new tax cuts, and further deregulation.
Hatzius cautioned, however, that a broad-based increase in tariffs poses a significant risk, as it could severely dampen economic growth.
Source: TheDotNews