The "1Q2025 Global Economic Outlook" highlights a resilient global economy poised for steady growth despite emerging divergences among major economies. The United States continues to lead with robust growth, benefiting from a cooling labor market and declining inflation, which should allow further rate cuts by the Federal Reserve. Japan faces inflationary pressures but anticipates positive growth due to real wage increases. Meanwhile, the UK, Eurozone, and Canada are all expected to experience accelerating growth supported by easing monetary policies. China faces unique challenges, including deflationary pressures and weak domestic consumption, though government stimulus measures aim to stabilize the economy.
Commercial Real Estate (CRE) markets are set to build on the recovery initiated in 2024, supported by improving fundamentals, stable demand, and easing monetary policies globally. Rent growth may have decelerated, and vacancies remain a concern in some areas, but limited supply growth has kept fundamentals healthy. Global CRE capital markets are recovering, with positive income and appreciation returns expected to accelerate in 2025. While risks such as shifting policies, trade uncertainties, and geopolitical tensions persist, they are unlikely to derail economic or CRE market momentum this year.
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