Global Macro Research
Macroeconomics

The Monthly Macro Outlook Video - January 2025

Insights from from abrdn's political economist on key themes to watch in 2025.

Author
Lizzy Galbraith, Political Economist, abrdn
Political Economist

Duration: 3 Mins

Date: 22 Jan 2025

In our first video of the year, we delve into the significant political shifts and uncertainties that lie ahead. With the new administration of Donald Trump getting settled, we explore the expansive domestic, trade and foreign policy agenda that has had everyone speculating about the priorities of the new president.
Key Points:
  • On the trade front, we anticipate a notable increase in US tariffs on China, with more targeted tariff increases elsewhere to secure policy concessions. 
  • Foreign policy will also be under the spotlight with a big focus on Russia and Ukraine, as well as Trump's pledge to secure an increase in NATO defence spending.
  • In the US, Congress is set for a busy year with immigration reform, tax cuts and a major spending bill on the agenda, as Republicans seek to deliver Trump’s goals with a slim majority in the House of Representatives.
  • We also discuss the political and fiscal challenges in Europe, particularly in Germany and France, and the ongoing efforts to deliver lasting ceasefire agreements in the Middle East and Ukraine.

Watch the video below for more details on these critical issues.