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Top 10 trends to watch in 2025 – Rewane

Top 10 trends to watch in 2025 – Rewane

Bismarck Rewane, a leading Nigerian economist and CEO of Financial Derivatives Company

As 2024 approaches its end, Bismarck Rewane, CEO of Financial Derivatives Company, has outlined the top ten global trends expected to shape 2025, offering insights into potential economic, geopolitical, and technological shifts.

America’s Pivotal Choice

Donald Trump’s anticipated return to power is poised to redefine global dynamics, with tighter immigration controls, a protectionist trade stance, and heightened geopolitical risks. Rewane predicts this could fuel tensions, disrupt global trade, and possibly spark nuclear proliferation, signaling a significant period of uncertainty.

Read also: Nigeria’s economic reforms and outlook for the year 2025

Broader Disorder and Geopolitical Rivalries

America’s transactional foreign policy under Trump could embolden adversaries like China, Russia, Iran, and North Korea to take bolder actions. This environment of “broader disorder” could lead to destabilising activities worldwide.

Trade Wars and Tariffs

With the possibility of escalating tariffs and restrictions, Rewane foresees a deepening trade war, not only between the United States and China but potentially involving America’s allies. These moves could strain global trade relationships and impact economic growth.

Voter Expectations and Political Shifts

The year 2025 is projected to be a period of reckoning for many global leaders, as citizens demand the fulfillment of campaign promises. Failure to meet expectations could trigger unrest in various regions.

Clean-Tech Revolution

China is expected to spearhead a clean-tech boom, with innovations like solar panels and grid storage outpacing projections. This shift could redefine energy markets and accelerate the global transition to sustainable energy.

Economic Adjustments in the West

Western economies face tough decisions on balancing fiscal deficits through a mix of higher taxes, spending cuts, and growth-focused initiatives. Inflationary pressures are expected to persist, influenced by supply chain shifts and tight labor markets.

Artificial Intelligence at a Crossroads

The global investment in artificial intelligence is projected to exceed $1 trillion, with a focus on building data centers. Generative AI will drive productivity gains in some economies, although its broader implications remain uncertain.

Read also: Bridging the gap: Diaspora potential for Nigeria economic growth

Age and Leadership

Debates about age limits for political leaders will intensify, particularly as a burgeoning youth population faces limited job opportunities. This demographic challenge could contribute to instability, particularly in the Middle East.

Challenges in Global Travel

Global mobility could face new hurdles, as conflicts and geopolitical tensions disrupt international aviation and hinder free movement.

Surprises Await

Rewane notes that 2025 may bring unexpected events, ranging from a devastating solar storm to the discovery of ancient texts or even another global pandemic.

Economic Implications for Nigeria

For Nigeria, these global risks hold significant implications:

Green Technology Lag: Limited access to emerging green technologies could slow Nigeria’s energy transition.

Oil Export Challenges: Rising tariffs and trade barriers may reduce foreign exchange earnings from oil.

Market Volatility: Global monetary policy divergence and fluctuating oil prices could destabilise the Naira, affecting trade and investment.

Lower Commodity Demand: A slowdown in Chinese demand could further dent Nigeria’s export revenues.

Despite these challenges, opportunities may arise from easing global monetary policies, which are expected to lower interest rates in advanced and emerging economies between 2025 and 2026. However, Rewane cautions that inflation may remain elevated in the medium term due to labor market constraints and supply chain adjustments.

Read also: Economic Week Ahead: Nigeria publishes GDP data as MPC meets for likely rate hike

Energy and Oil Markets

The ongoing Middle Eastern conflict could drive Brent crude prices upward, but this may be tempered by moderated demand from China. Nigeria’s economy, heavily reliant on oil revenues, will likely feel the pressure of these global trends.

Rewane’s insights highlight the interconnectedness of global events and their potential ripple effects on developing economies like Nigeria, underscoring the need for strategic planning to navigate 2025’s uncertainties.

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

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