At the start of 2025, the world braced for economic turbulence due to new US tariffs and trade wars. However, contrary to fears, a global recession did not occur. According to the IMF, the world economy grew about 3%, unemployment in most developed nations remained low, and most stock markets finished the year positive.
Portugal was the surprise leader among 36 advanced economies, with over 2% GDP growth, low inflation and unemployment, and a record-setting stock market. The keys to its success were tourism, tax incentives for foreigners, and macroeconomic stability.
Other top performers included Spain, Greece, Ireland, and Israel; the latter posted robust growth even amidst war thanks to a thriving high-tech sector.
Laggards included Denmark, hurt by a steep drop in its pharmaceutical giant's shares; Germany, facing structural issues; and Slovakia, whose automotive sector suffered from US tariffs.
The US ranked in the middle: its economy continues to grow but inflation remains high. The year's most prominent trend was an investment boom in AI, significantly affecting markets and productivity. Industry slumps, national successes and tech innovation shaped the year.
Key lessons include the risks of depending on one sector, dynamic results from Southern Europe, and that war does not always halt development of a high-tech economy. AI is already impacting the global economy but its long-term sustainability is still debated.
