Global economy to see subdued growth amid geopolitical uncertainty in 2025: Barclays Bank

Barclays Bank predicts subdued global economic growth of 3% in 2025, leading to potentially lower investment returns. While the US economy remains robust, the Eurozone faces slow recovery and China's growth is expected to decline. Investors are advised to prioritise quality assets and consider ESG factors in their decision-making.

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New Delhi: The global economy faces a challenging landscape in 2025 characterized by subdued growth and heightened uncertainty, according to a report from Barclays Bank . The report highlighted that the world is unlikely to experience significant improvements in gross domestic product (GDP) growth, leading to expectations of lower investment returns in the near future. It said "Our economists anticipate global gross domestic product (GDP) growth to slow to 3.

0 per cent in 2025, down from 3.2 per cent in 2024. Historically, this level of economic expansion, which is slightly below the long-term trend, has coincided with flattish earnings growth".



The report emphasized the importance of strategic planning and a focus on environmental, social, and governance (ESG) factors to navigate this complex environment. It added with sustainability becoming more mainstream, investors are increasingly having to consider ESG factors in how companies operate to make better-informed investment decisions. Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Finance Financial Literacy i.

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Anu Khanchandani, Startup Coach with more than 25 years of experience View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program The report also mentioned that in the United States, economic growth is projected to remain robust, with forecasts suggesting an expansion of over 2 per cent in 2025. This growth is supported by a combination of monetary policy adjustments and a resilient labour market. However, the Eurozone is expected to experience only mild recovery, with GDP growth anticipated at around 0.

7 per cent. The region's economic prospects remain clouded by contractionary fiscal policies and the need for increased investments to enhance competitiveness. For the China's economy the report noted that it is also under scrutiny, with GDP growth forecasts declining to 4.

0 per cent for 2025. It said "The Chinese economy has slowed in 2024 and is forecast to grow by 4.8 per cent.

The outlook for 2025 is not bright, with gross domestic product (GDP) expected to expand by only 4 per cent". The report highlights the potential for a "big bazooka" moment if stimulus measures successfully reignite economic activity. Meanwhile, the UK is navigating a new economic paradigm, with growth projected at 1.

2 per cent as it adapts to post-Brexit realities. The investors are urged to remain selective and focus on quality assets amid shifting market dynamics. It said the significance of understanding the interplay between macroeconomic factors and investment opportunities, particularly in the context of climate change and ESG risks.

As uncertainty looms, the outlook for 2025 calls for a strategic approach to investment, emphasizing the need for adaptability and foresight in an evolving global economy. (You can now subscribe to our Economic Times WhatsApp channel ).