Q3 2025 Global Economic Outlook
Global economy to weather geopolitical headwinds
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The latest edition of this quarterly report provides our latest insight into how key DMs and EMs will perform as the trade war continues and – with some notable exceptions – global central bank easing continues.
These key takeaways from our client report highlight the big issues in the global economy, including:
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Which countries we expect to lead a global economic slowdown;
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What higher tariff rates will mean for inflation across the global economy;
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How the pace of global central bank easing will slow, even as the Fed remains on the sidelines.
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About our Global Economics coverage
Capital Economics Chief Global Economist Jennifer McKeown leads a team of economists focusing on global themes. She has 18 years' experience as a professional economist, having joined Capital Economics after five years at the Bank of England.
Our Global Economics coverage provides a snapshot of our views on individual countries and regions, but the main focus is on global implications and issues. The service includes timely updates on global growth, trade and inflation; forecasts for monetary policy and inflation in the largest advanced and emerging economies; and a quarterly global economic outlook. It also offers concise but detailed research on current global issues.
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The accuracy of our analysis and forecasting is reflected in the many awards we win each year from across the industry.
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Trump’s policies will drag on US growth, policy support will not prevent a slowdown in China’s economy, and looser fiscal policy will provide just a modest boost to growth in Europe.