Global Economic Challenges Loom Ahead

Major global economies are bracing for significant challenges by 2025. China, facing an aging population and economic slowdown, may see its GDP decline due to a possible trade war with the US. Rising economic nationalism is leading nations away from multilateral institutions, favoring regional and bilateral agreements. Sovereign debt is soaring, projected to exceed $100 trillion globally by 2030, with central banks playing a crucial role in determining interest rates.

In Europe, Germany and France's political stability is crucial for the EU's economic outlook. As President Trump returns, his tariff policies threaten the EU's export sectors, specifically Germany's. Meanwhile, Europe's trade relations with China are expected to deteriorate, further complicating economic recovery efforts.

China adjusts its GDP growth forecasts upwards, backed by state aid and strong exports. However, it navigates domestic challenges like a real estate crisis and social safety net issues. Structural reforms and strategic stimulus are pivotal to mitigate potential impacts from global trade tensions.