The global economy will expand at a solid if unspectacular pace of 2.5% in 2025, driven by strength in India, emerging market economies and the United States, RSM US Chief Economist Joe Brusuelas writes in the January issue of The Real Economy.
Leading the way among emerging economies will be India, for which Brusuelas forecasts a growth rate of 3.5% to 4%. But developed economies like those in Europe will lag, he adds, growing at a rate of 1.25% to 1.75%. The U.S. economy will continue to outperform other developed economies, though the prospect of higher tariffs has added a measure of uncertainty to the outlook.
A big factor in the global economic picture is the strong U.S. dollar, which has helped drive capital and investments in the U.S. economy. But the strong dollar has also posed a challenge for emerging economies because of the rising cost of dollar-denominated external debt, Brusuelas writes.
