Page 8 - Market Outlook Q4 2024

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Economic Overview

Economic Forecasts Blend Optimism With a Dose of Caution

uncertainties, particularly concerning trade policies and international
relations.

Technological Advancements and Economic Impact
Technological advancements, particularly in artificial intelligence (AI),
robotics, and space exploration, are poised to transform industries
and disrupt the global economy, reports Forbes. These innovations
are expected to drive productivity, create new markets, and influence
employment patterns.

U.S. investment in AI is projected to reach $100 billion, leading global
AI investment estimated at $200 billion, according to Quantumrun. This
substantial investment underscores the strategic importance of AI in
As we approach 2025, economic forecasts present a blend of optimism driving future economic growth.
and caution, influenced by factors such as policy shifts, global trade
dynamics, and technological advancements. Here's an overview of the Risks and Considerations
anticipated economic landscape. The reintroduction of tariffs and trade restrictions by the Trump
administration could disrupt global trade flows, affecting economic
Global Economic Outlook growth and introducing market volatility, according to Barron’s.
The global economy is expected to grow by approximately 2.7% in
2025, maintaining the pace observed in 2024, according to Goldman High market valuations, particularly in the tech sector, suggest potential
Sachs. This steady growth is anticipated despite challenges such as volatility. Investors should be cautious of overvaluation risks and the
trade tensions and policy uncertainties. possibility of market corrections.

However, Forbes predicts inflation rates are projected to remain above Rising Costs
targets in various economies. U.S. inflation is expected to hover around Businesses are contending with increased expenses due to inflation,
2.1%, slightly above the Federal Reserve's target, influenced by policies affecting everything from raw materials to labor costs. This financial
that stimulate spending while constraining production. pressure necessitates strategic adjustments to maintain profitability.

United States Economic Outlook Talent Acquisition and Workforce Management
The U.S. economy is forecasted to outperform expectations, with a
projected GDP growth of 2.5% in 2025, surpassing the consensus The demand for skilled labor continues to be an ongoing concern.
estimate of 1.9%. This growth is attributed to factors such as consumer Particularly in technology-driven roles, demand for skilled labor is
confidence, a robust labor market, and policy measures aimed at outpacing supply. Businesses are finding it challenging to recruit and
stimulating economic activity. retain talent with the necessary expertise to drive innovation.

Unemployment rates are expected to stabilize around 4.2%, reflecting Regulatory Pressures
a balanced labor market with sustained job creation, reports Goldman Environmental regulations are becoming more stringent, requiring
Sachs. businesses to invest in sustainable technologies and processes to
remain compliant.
The return of the Trump administration is anticipated to bring significant
policy changes, including tax cuts, fiscal stimulus, and deregulation.
While these measures may boost economic growth, they also introduce