St. James’s Place 2024 Market Review and Outlook for 2025

Highlights from 2024 and what it means for 2025

Through 2025, we expect the economic landscape to be shaped by fiscal policy, evolving trade dynamics and divergent regional growth trajectories.

In a year peppered with many notable elections, the global economy was marked by heightened economic uncertainty in 2024. Despite concerns at the start of the year that restrictive monetary policy would weigh on GDP, growth surprised to the upside and recessions in the key developed market economies were avoided. A gradual cooling of labour markets - lower vacancies and lower wage growth without a significant increase in unemployment – combined with progress in taming inflation has allowed central banks to pivot policy towards gradual rate cuts.

But with the major elections behind us, it’s time for governments to start implementing their policies. Here are some key factors to consider.