News & Media

2024 Retrospective:

The Organization for Economic Co-operation and Development (OECD) reported steady global GDP growth of 3.1% in 2024, supported by easing inflation and higher household incomes. Central banks have begun shifting toward accommodative policies to sustain growth. The S&P 500 surged 31% over the past year, driven by investor optimism and robust economic fundamentals. This is in contrast to more sluggish markets in the rest of the developed world. Declining inflation has enabled central banks, including the Federal Reserve, to adopt a more supportive monetary stance. We have witnessed strong consumer activity despite higher interest rates -- further driving market optimism during the holiday season.

Outlook for 2025:

The OECD Forecasts Global GDP to grow another 3.2%, with improved private sector confidence and continued disinflation. The Federal Reserve projects 2.5% US GDP growth, and inflation near 2%, as we expect gradual interest rate cuts. We expect domestic financial services and energy sectors to perform particularly well in 2025 due to the socio-economic and deregulation expectations of the new presidential administration.

Potential Risks:

New U.S. tariffs could introduce inflationary pressures and affect global trade dynamics, which could add market volatility. All eyes are on China, as their poor consumer sentiment has negatively impacted European economies that rely heavily on the sales of their higher-end goods and services. While 2024 reflected economic resilience, 2025’s outlook hinges on addressing trade and geopolitical risks, with opportunities for stable growth in a shifting landscape.