Global Economic Expansion Predicted for 2025

## ACCA’s Global Economic Outlook

The global economy, whilst expected to grow at a reasonable clip, leaves much to be desired in excitement, as articulated by the Association of Chartered Certified Accountants (ACCA) in their latest [report](https://www.accaglobal.com/gb/en/professional-insights/global-economics/global-outlook2025.html). This second edition of the ACCA’s annual economic outlook shed some light on the landscape awaiting us.

### A Year of Reasonable Growth

“The global economy should continue to grow at a reasonable, but not particularly exciting pace in 2025,” opined ACCA chief economist Jonathan Ashworth. However, he warned of significant uncertainties shadowing this growth. Potential changes in U.S. trade policy, geopolitical tensions, political uncertainty, and rising government bond yields loom large on the horizon.

### US, Europe, and the UK Prospects

Economist Charles Goodhart offered his insights, positing that the U.S. might enjoy a robust performance in 2025. Europe and the UK, conversely, could face troubles. He noted, “The U.S. economy will do very well…Europe and the U.K. will do relatively badly.” The spectre of higher U.S. import tariffs poses additional worries for Europe’s already strained business model.

### Technological Advances and Challenges

The emergence of AI presents tantalising opportunities for enhanced productivity. Hybrid solutions integrating various technologies will prove paramount in unlocking sustained value. Businesses acknowledge AI’s potential and its disruptive challenges, making it a priority as highlighted in the report. Notably, the report also highlighted the importance of agility, innovation, and resilience in navigating these uncertain economic waters.

#### Table: Technological Aspects
| Technology | Potential | Challenges |
|————|———–|—————–|
| AI | High | Disruption |
| Hybrid Tech| Essential | Integration |

### Conversations with CFOs

The ACCA’s report draws from interviews with seven CFOs globally across differing sectors. Whilst a notable slowing in global growth isn’t their expectation for 2025, caution reigns supreme. Global uncertainties abound, particularly concerning President Trump’s policies. Risks highlighted include inflation, cybersecurity, exchange rate movements, climate change, and more. Social tensions and geopolitics, however, also present opportunities.

### Ongoing Economic Confidence

Complementing this report is the ACCA’s quarterly [Global Economic Conditions Survey](https://www.accaglobal.com/gb/en/professional-insights/global-economics/GECS_q4_2024.html), conducted with the Institute of Management Accountants. The survey’s recent findings from the fourth quarter revealed [economic confidence growing among U.S. accountants](https://www.accountingtoday.com/news/economic-confidence-grows-among-us-accountants-but-plummets-globally), though waning globally.

### Final Thoughts

In conclusion, the global economic outlook for 2025 presents a canvas of reasonable, if unexciting, growth painted with strokes of uncertainty. It will require the adoption of technological advances and adaptation to evolving global risks to successfully traverse what lies ahead.