This NatWest Economic Update examines the mixed global economic outlook as we enter 2025, focusing on inflation pressures, labor market dynamics, and policy shifts across key regions.
Key Insights:
• UK Economy: Weak retail sales growth of 0.5% in December reflects subdued consumer demand; house prices saw modest annual growth of 3.3%.
• Eurozone Inflation: Inflation at 2.4% remains under ECB projections, with further rate cuts expected amid resilient labor markets.
• U.S. Trends: Strong December job growth (256k) and a 4.1% unemployment rate suggest the Fed may pause rate cuts.
For a detailed analysis of these developments and investment strategies, access the full report.