Germany’s economy, which has lagged behind its peers in recent years, faces a series of headwinds in 2025, including trade uncertainty with the US, still-high energy prices, and growing competition from China. Elections in February will provide an opportunity to tackle the country’s challenges. Europe’s largest economy is forecast to expand 0.3% in 2025, which is slower than the estimate for the euro area of 0.8% and...

    UK government bond yields have risen amid investor concern about the government’s fiscal outlook and sticky inflation. Even so, Goldman Sachs Research projects the country’s borrowing costs will decline by the end of the year as the Bank of England cuts its policy rate. “We still think the UK data will justify more cuts than the market is pricing,” says George Cole, head of European rates strategy...

    Even as tariffs and other shocks are expected to rattle the global economy in 2025, India will likely remain insulated. Thanks to a strong push in manufacturing and infrastructure, the Indian economy is “buzzing with energy and optimism,” says James Reynolds of Goldman Sachs Asset Management. “With domestic consumption accounting for 70% of its GDP, India has historically been viewed as more vulnerable to high inflation,” says...