| Voters in 2025 will expect leaders to deliver on campaign promises, with consequences if they fail. | Trump’s protectionist policies may lead to a trade war with China and escalate geopolitical tensions. | AI is poised to revolutionize industries, with massive investments in AI infrastructure and a significant impact on US GDP by 2030. |
Voters ready for change – leaders need to deliver
2025 will be a year of expectation as new leaders attempt to deliver on their campaign promises, if they don’t the electorate will have something to say.
America decided – brace for impact!
The Trump victory will have a far-reaching impact. His protectionist approach will likely lead to geopolitical realignments and increased tensions. A transactional stance and cynicism of foreign conflict is a concern.
Big decisions – from day one…
America’s rivalry with China will likely escalate into a trade war as Trump imposes restrictions and ramps up tariffs. On the campaign trail he promised to levy tariffs of 10-20% on all imported goods, with levies as high as 60% on imports from China and 100% on those from Mexico. It remains to be seen how the UK will be affected, ‘special’ relationship or not.
Clean tech success – China in charge
China’s government has focused on growing exports of solar panels, batteries and electric vehicles to offset a weak domestic economy. With adoption of solar panels and grid storage outperforming forecasts, China is in the driving seat.
Post-inflation – some tough choices
With inflation (pretty much) kicked into touch (although services price inflation is still proving persistent in some regions), western economies face a new challenge to reduce deficits by increasing taxes, cutting spending or boosting growth. And what about defence budgets? Tough economic choices loom.
Astronomical AI – ‘high stakes, exponential rewards’
AI is changing everything from welfare to health care. Spending on AI data centres between 2024 and 2027 is expected to exceed $1.4tn. A Tech Trends report for the year ahead, entitled ‘high stakes, exponential rewards’ suggests that in order to keep up, business leaders ‘should develop mature implementation roadmaps, understand security risks, adopt new technologies and explore cutting-edge, value-driven AI use cases.’
Did you know?
- AI will have an estimated 21% net increase on US GDP by 2030
- Over 75% of consumers are concerned about misinformation from AI
- By 2030 one in 10 cars will be self-driving
- 64% of businesses expect AI to increase productivity (Forbes Advisor).
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. It is important to take professional advice before making any decision relating to your personal finances. This document does not provide individual tailored investment advice and is for guidance only.
All details are believed to be correct at time of writing – 04 December 2024.
