The Year Ahead

Economic forecasts for next year largely hinge on the assumption of a soft landing for the world economy, but this outlook is anything but certain. Recent weeks have seen a sharp rise in uncertainty, driven in part by the prospect of significant — and potentially disruptive — policy shifts from a new US administration. Meanwhile, persistent supply-side pressures, including the challenges of climate change, the energy transition, aging populations, and lingering geopolitical tensions, continue to fuel economic and political instability, with Europe bearing the brunt of these strains. The potential of artificial intelligence to boost productivity offers a glimmer of hope amid these headwinds. However, whether AI’s transformative impact materializes by 2025 or takes much longer remains open to debate.