There will be “another solid year of global economic growth in 2025,” but that different countries will see different rates of growth, according to a Goldman Sachs forecast.

The investment bank’s economic forecast for next year shows that India could see a significant expansion of its economy, while several European countries will see a slower GDP expansion.

Newsweek has contacted the Goldman Sachs press office via email for comment.

After a difficult few years following the COVID-19 pandemic, the forecast is moderately optimistic for the global economy but expects mixed fortunes for different regions while predicting that new trade policies that could be brought in by President-elect Donald Trump could have a significant impact on economies outside the U.S.

Among the countries for which the U. S. investment bank has made forecasts, India is expected to experience the fastest GDP expansion in 2025, at 6. 3%. China arrives at the moment with a projected expansion of 4. 5 percent.

Germany is expected to see the smallest replace in GDP at 0. 3 percent. France and Italy are expected to see their economies grow through less than 1% in 2025.

The US economy is expected to continue developing at a stable pace of 2. 5%, and Goldman Sachs has predicted that the effect of Trump’s possible new industrial policies on the US economy will be “small and largely offset by other factors” . .

He predicts that “economic headwinds similar to those of U. S. industrial policy are expected to be greater outside the United States. ”

Goldman Sachs predicted that Trump’s potential tariffs will subtract almost 0.7 percentage points from China’s economic growth in 2025, while its economists also reduced their forecast for the euro area by 0.5 percent after the U.S. election.

Overall, the forecasts are largely similar to those made by Goldman Sachs for 2024, with the exception of Russia, which is experiencing the biggest change in forecasts. As in 2024, the investment bank expected its economy to grow by as much as 3. 5 percent. , however, until 2025 it projected that Russia would grow by only 1. 2 percent.

Jan Hatzius, chief economist at Goldman Sachs Research, wrote in the team’s report titled “Macro Outlook 2025: Tailwinds (Probably) Trump Tariffs”: “We expect productivity expansion in major U. S. countries. “The U. S. is particularly more powerful than elsewhere, and this is one of the main reasons why we expect the expansion of U. S. GDP to be particularly strong. The U. S. continues to perform well. “

Goldman Sachs predicted that global GDP will expand by 2.7 percent next year on an annual average basis, which is similar to the estimated expansion for 2024.

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Jasmine Laws is a Live News Reporter at Newsweek based in London, U.K. Her focus is reporting on U.S. politics, crime and global affairs. Jasmine joined Newsweek in 2024 from News UK and had previously written for the Metro, Byline Times, The Human Perspective magazine and The Express. She has previously extensively covered stories within the U.K. art industry, human rights, health, and human trafficking. She was one of the nominees for Best News Piece at the U.K’s Anti-Slavery Day 2023 Awards in Parliament. She is a graduate of Durham University and completed her NCTJ at News Associates. You can get in touch with Jasmine by emailing [email protected]. Languages: English.