Global GDP to grow 2.9%, Citi Wealth report says

Posted on 2025-01-06

According to a report prepared by Citi Wealth on the outlook for the economic outlook for 2025, global GDP is expected to increase by 2.9% in 2025 and 2026, compared to 2.6% in 2024, and the United States (US) will continue to be the main driver of growth.

The report also addresses rising geopolitical tensions, in particular the impact of the Trump administration's domestic policies, which could lead to increased market volatility, with these policies expected to prioritize domestic activity, increasing the risk of trade conflicts and a slowdown in US growth.

Andy Sieg, Director of Citi Wealth, stressed that despite the risks, there are reasons for optimism, that the systemic trends that will drive growth in the coming years provide opportunities.

“However, global discord can threaten market stability, and with so many variables at play, it is crucial that investors have advisors they can trust,” he said.

Citi Wealth also identified four key trends that are shaping the global economic future. First is Artificial Intelligence, where the technology sector continues to lead, but sectors such as health, finance, robotics and education are beginning to reap the benefits.

Another trend is related to climate change, which, due to the growing need for measures to mitigate it, presents opportunities in sectors such as carbon capture and innovative technologies.

There is also health for longevity, as populations age, specialized healthcare administrators have significant growth potential.

And finally, the US-China polarization, a rivalry between the two powers that could intensify, benefiting industrial sectors in Southeast Asia, Latin America and the US.

The Citi Wealth report also highlights ten opportunistic positions for investors that could complement their portfolios depending on their objectives, including sectors such as semiconductors, biotechnology, nuclear energy and cryptocurrencies.