The world economy in 2025 is expected to face continued turbulence, with geopolitical tensions, trade wars, and shifting monetary policies shaping the global landscape…

This was the key takeaway from a conference hosted by the Monaco Economic Board in partnership with Gramaglia and Banque Populaire Méditerranée, where Jean-Christophe Café, Chief Economist of Coface, shared insights on anticipated trends and risks.

Coface predicts that global economic growth will stabilize at around 2.7% in 2025, slightly below its full potential of 3-3.2%. While there are signs of stabilization, major uncertainties remain, particularly concerning foreign policy and economic decisions under the new Trump administration in the United States. Trade policies, already a focal point of global economic discourse, could significantly impact both emerging markets and Western economies, depending on the direction of new reforms.

For European economies, the energy crisis remains unresolved, adding further strain to businesses and households. Companies are advised to closely assess their market exposure, diversify supply chains, and protect themselves against credit risks to navigate these challenges effectively.

Café emphasized that agility and adaptability will be key to maintaining economic stability in uncertain times. He recommended that businesses focus on short-cycle activities to remain flexible and react quickly to market fluctuations. Additionally, investing in risk insurance is crucial for those looking to expand into markets with political, social, or financial instability.

As 2025 unfolds, the global economy stands at a crossroads between resilience and fragility, with adaptability and proactive planning shaping the outcomes for businesses and financial markets worldwide.