Today's Edition
Abu Dhabi (Aletihad)
TRENDS Research & Advisory’s Economic Studies Division has released a new study forecasting the global economic outlook for 2025. The study cautions against the risks of growing trade protectionism while emphasising the growth opportunities created by technological advancements and digital transformation.
The study, The Global Economic Outlook for 2025: Between Protectionist Challenges and Digital Growth Opportunities, explores several topics, including global economic growth projections for 2025, the impact of protectionist policies on international trade and inflation, and growth opportunities in technology and digital transformation. It also presents recommendations to enhance sustainable economic growth.
The study shows that, despite looming challenges, the coming year offers significant growth opportunities, particularly in technology and digital transformation. Emerging technologies like AI and blockchain are expected to witness accelerated growth, creating new jobs and increasing productivity.
The study also underscores the potential risks of the new American administration's expected protectionist policies. Such policies are anticipated to fuel inflation by increasing production and consumption costs through higher import tariffs.
The study highlights that tariff barriers could reduce international trade and adversely affect global economic growth. Protectionist policies could also disrupt global supply chains and lead to shortages, higher prices of goods and services, and heightened geopolitical tensions. Such policies escalate trade conflicts among major powers and increase instability in the global economy.
The study calls on governments and businesses to adopt proactive measures to counter the challenges posed by protectionist policies. It stresses the importance of enhancing international cooperation to promote sustainable economic growth. It also recommends increased investment in research and development in technology and adopting policies that encourage innovation and entrepreneurship.
The Head of the Economic Studies Division at TRENDS emphasized the importance of this study in understanding the challenges and opportunities the global economy will face in the year ahead. He noted that the study's findings could help make more informed decisions.
