St. James’s Place investment team: 2024 Market Review & 2025 Outlook
observed. However, the broader macro regime is one of global economic integration, with widespread adoption of regional trade agreements and multilateral accords. Complementing this trend is the revival of public-sector investments in infrastructure projects, aimed at boosting productive capacities.
“The global savings glut amid lower investment rates continues to promote a stagnant real rate environment and fostered inflows into risk assets. With renewables and ESG-themed investments gaining prominence, we anticipate capital allocations gravitating towards sustainable growth and climate-resilient sectors.
“Emerging markets are poised for a stable year, with key drivers including tariff liberalisation and the development of local debt markets diverting attention away from political uncertainties. High public-debt ratios in several countries set the backdrop for further increases in defaults and restructurings, ensuring investors remain discriminating.
“Overall, as economic cycles evolve and key policy levers are exhausted, the 2025 landscape is shaping up to be one where market participants must deploy a robust risk management strategy to navigate emerging risks and sustain performance.”
