Despite signs of resilience in key markets, significant uncertainties still hang over the world economy, according to economist Jean-Pierre Petit, who addressed a packed room at the Méridien Beach Plaza in Monaco…
Invited by the Grands Cahiers de l’Économie, Petit shared his macroeconomic and geopolitical outlook with local business leaders, bankers and investors eager to gauge the climate for 2025–2026.
Petit described the current global situation as “average rather than alarming.” Investment spending remains healthy, especially in the United States, and energy prices are relatively stable. However, he warned of two persistent risks: rising customs duties and a slight uptick in global inflation, both of which could dampen industrial output and consumer sentiment. The US job market is slowing, China’s growth has cooled, and trade tensions between the two powers continue to shape technology and supply chains.
For Monaco’s financial community, his advice was clear: exercise prudence on overheated stock markets, particularly the US technology sector, which now makes up as much as 40 percent of some indices. Petit recommended selective positioning in sectors such as healthcare, energy and short-maturity corporate bonds, and suggested that currencies like the yen or the Chinese renminbi could offer opportunities.
The lecture underlined the Principality’s role as a forum for international economic dialogue. Business tourism accounts for over a quarter of Monaco’s hotel nights, and events like this bring together decision-makers whose investments influence regional growth. Even as global headwinds persist, Monaco’s diversified economy, high-end tourism and active financial sector remain well placed to benefit from carefully chosen opportunities in shifting markets.
