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Germany’s economy entered Q4 2025 on a broadly stable footing, showing a mix of domestic stabilization and external pressures. Key highlights: Industrial production rose again in October, with domestic orders climbing noticeably. Exports reached a six-month high, driven by stronger EU demand. Sentiment and early indicators show a mixed picture, with business expectations and consumer confidence weakening slightly. Overall, the economy faces tension between external challenges and gradual domestic stabilization.
Germany’s economy has long relied on strong exports to drive growth, with major markets like the United States and China playing a central role. In 2025, however, demand from both of these key partners has slowed, putting pressure on German manufacturers and industries. While the country remains economically stable, the slowdown highlights vulnerabilities in its export-driven model and the need for strategic adjustments.
Germany’s economy is showing tentative signs of recovery in 2026, with modest growth expected after a period of stagnation. While public spending and selective investment support stability, external pressures and cautious private sector activity continue to pose risks. Overall, the outlook is one of stability without strong momentum, highlighting the need for strategic adjustments.
Vienna is expected to account for more than one third of all corporate insolvencies in Austria in 2025, according to recent forecasts. Despite signs of economic growth, many businesses in the capital are struggling to survive. Rising costs, mounting debt, and weak demand are placing increasing pressure on companies across multiple sectors.
Austria’s economy is expected to grow only slowly in 2025, supported mainly by domestic consumption while exports remain weak. New analyses highlight cautious investment, uneven sector performance, and declining demand from key international markets. At the same time, structural challenges continue to limit the pace of recovery, making the outlook stable but fragile.
Explore how global trade is evolving as free trade’s prominence wanes — from geopolitical tensions and protectionist trends to strategic regional partnerships. Learn why globalization is slowing, what it means for export-dependent economies, and how countries are adapting in a new world of slowbalisation.
Valiant’s late-2025 investment strategy highlights a cautiously optimistic outlook for global markets, advocating diversified asset allocation amidst slowing momentum and resilient macro fundamentals. Investors are guided toward balanced positioning that navigates uncertainty while capturing growth opportunities.
Switzerland recorded its lowest inflation rate in five years in 2025, with average price growth near zero. While some sectors saw modest increases, weaker import prices and a strong franc helped keep overall inflation subdued. Despite this, the Swiss National Bank is expected to maintain a cautious monetary stance into 2026.
In 2025, SIX exchanges delivered historic gains, with the SMI® and IBEX35® hitting all-time highs. Trading activity and capital raising climbed sharply, marked by multiple successful IPOs and record turnovers across key segments. This year’s performance underscores strengthened investor engagement and expanding market depth in Switzerland and Spain.
Sweden’s GDP is expected to recover gradually after a weak 2025. Economic growth is forecast to strengthen in 2026 as inflation eases, interest rates decline and household consumption improves. Exports and higher real wages are also expected to support the recovery.
Swedish economic indicators suggest a transition from recession to recovery, driven by stronger real wages and rising consumer spending. Although unemployment remains elevated, improved purchasing power and growing confidence signal a more positive outlook for 2026.
Sweden’s economy showed increased activity in 2025, with GDP rising more strongly than in recent years and household spending climbing across key categories. Real incomes improved and several expansion indicators moved into positive territory, highlighting a gradual shift from stagnation to growth.
In 2025 Norway’s trade surplus fell to its lowest level in four years as weaker oil and gas export revenues and rising imports weighed on the balance of goods trade. Stronger mainland exports, especially seafood and industrial equipment, helped cushion the downturn.
Norway’s year-end inflation rate in December 2025 rose to 3.2 %, above forecasts, driven by higher food, transport and energy costs. Core inflation also surprised to the upside, underscoring persistent price pressures and complicating expectations for near-term interest rate cuts.
Norway’s economy is projected to grow at a normal pace, underpinned by stronger household consumption and fiscal support, even as residential construction and petroleum investment remain weak. Inflation remains above target, delaying interest rate cuts and shaping a stable yet modest growth outlook through 2028.
A modest uptick in Denmark’s consumer confidence index in December 2025 signals slight improvement amid lingering pessimism, with households still worried about the economy, prices, and job prospects.
Denmark’s national accounts data show healthy GDP expansion in the third quarter of 2025, driven by strong industrial performance and increased household spending, while employment also edged up.
After releasing its latest Economic Policy Report, the Danish government significantly raised its GDP growth forecasts for 2025 and 2026, citing robust export activity and resilient private consumption, while business leaders stress the need for more labor supply to sustain momentum.
Finland’s latest government forecast shows that economic recovery has been weaker than expected, with sluggish domestic demand holding back growth this year, though modest improvements are expected from 2026 onward.
Finland’s economy has unexpectedly returned to recession in 2025, with weak domestic demand, falling confidence, and structural challenges weighing on growth despite improving global trade conditions.
Finland’s latest economic outlook shows sluggish GDP growth in 2025 due to weak domestic demand and persistent uncertainty, while moderate expansion is expected in the coming years amid gradual improvements in consumption and investment.
Macro-economic forecasts from the National Bank of Belgium (NBB) outline a period of steady but modest growth, ongoing fiscal pressures, and cautious prospects for inflation and debt dynamics in the Belgian economy through 2028.
Belgium’s latest ranking in the OECD’s Tax Competitiveness Index reveals the country lagging behind peers, not because of heavier taxes but due to insufficient reform. With several major tax changes set for 2026, the window remains open to strengthen Belgium’s fiscal appeal—if decisive action is taken.
Belgium’s economic activity continues to expand moderately, driven by private consumption and services, while industrial production weakens and business confidence remains fragile. The labor market shows gradual progress, inflation is slowing, and outlooks forecast continued modest growth.
The Dutch economy grew more than initially estimated in the third quarter of 2025, with a revised GDP increase of 0.5% from the previous quarter. Exports and public consumption were the main growth drivers, while employment figures showed positive annual gains. This update from Statistics Netherlands highlights a modest but broad-based economic expansion.
Economists from Rabobank forecast that the Netherlands will continue to see economic expansion in the coming years, driven mainly by consumer spending and rising government outlays. However, the jobless rate is expected to climb gradually as the labor force grows faster than employment opportunities. Meanwhile, inflation is set to ease and wages are projected to rise, supporting household purchasing power.
The Netherland’s central bank (DNB) reports that the Dutch economy has grown more robustly in 2025 than initially forecast, despite global uncertainties and trade tensions. Growth is projected at 1.7 % this year, with moderate expansion expected next year. If structural constraints are addressed, the outlook could improve further. Price growth is moderating, wages are rising, but affordability challenges remain.
New figures from Luxembourg’s employment agency show that the number of jobseekers registered with ADEM reached 21,090 by the end of December 2025, up by 1,558 from a year earlier. The seasonally adjusted unemployment rate remains steady at 6.2 %. Increases were seen across age and education groups, especially among those with higher qualifications. Job vacancies rose in December but the total number of open positions declined year-on-year.
Luxembourg’s economy showed signs of recovery in the third quarter of 2025, with GDP growing 1.1 % compared to the previous quarter, following slower expansion earlier in the year. Growth was led by finance, trade, and public services, while construction and industry lagged. Although employment gains were reported, the labor market remains under strain, with modest job creation and ongoing challenges in key sectors. New outlook figures will be released soon.
Luxembourg’s official statistics office, Statec, says the economy is showing signs of improvement after years of stagnation, with 2025 growth expected around 1.0 % of GDP. The forecast for 2026 has been revised down to 1.7 %, while 2027 is seen growing at about 2.1 %. Lower interest rates could boost investment, particularly in real estate and construction, while the financial sector may benefit from rising stock markets. Global uncertainties, however, remain a downside risk.
Official data show the US economy experienced a roller-coaster year in 2025. GDP bounced back strongly in the third quarter, but inflation remained persistent, and the labour market softened as job creation faltered and unemployment rose. Despite high-profile claims of booming prosperity, key indicators reveal a more mixed picture of economic health, with interest rate debates and policy challenges shaping the outlook.
Global financial markets ended 2025 stronger than expected after a turbulent year marked by tariff shocks and policy uncertainty. Advanced economies show modest growth with monetary easing and loose fiscal stances, yet risks from geopolitical tensions and uneven equity returns persist. Fixed income is expected to offer limited upside while real assets remain attractive as hedges against future volatility.
The U.S. economy expanded at an annualized 4.3% in the third quarter of 2025, its strongest pace in two years, driven by robust consumer spending, exports, and government outlays. However, weaker retail confidence and uneven income gains underscore a mixed economic picture as policymakers assess the next phases of monetary and fiscal support.
This article opens with an overview of the main economic trends shaping Canada at the end of 2025, highlighting investment activity, fiscal developments, and labour market signals. It then examines major corporate investment plans and structural changes across key industries, followed by an analysis of recent government policy decisions and provincial budget outlooks. The next section places Canada’s performance in an international context by reviewing global market movements, central bank actions, and commodity price trends. The article concludes with a summary that brings together the most important insights and outlines what these developments may mean for Canada’s economic direction in the year ahead.
Canadian businesses ended 2025 with cautious optimism as weak demand and trade uncertainty continued to shape expectations. While sales prospects and investment intentions showed slight improvement, most firms remain focused on stability rather than expansion. Hiring plans are restrained, cost pressures are easing, and inflation expectations are steady, suggesting a slow and uneven economic recovery heading into 2026.
Global equity markets finished December modestly higher, supported by resilient North American growth and record commodity prices, while soft demand in China and elevated valuations held back sentiment. Canada’s job market showed late-year stabilization, and bonds and currency markets reflected cautious optimism. With monetary easing underway and key sectors outperforming, investors look ahead to a nuanced 2026 outlook.
Japan’s economy in late 2025 reveals a gradual recovery backed by solid consumer spending and corporate profits, even as weak exports and business investment act as drags. Employment and consumption trends support GDP growth expectations, but manufacturing output and external demand lag. Price pressures are easing while inflation nears target, suggesting policymakers may soon adjust monetary policy amid persistent global risk factors.
Japan’s economic outlook for late 2025 shows modest but positive growth forecasts for fiscal years 2025 and 2026, with real GDP projected to rise and wage stabilization supporting consumption. However, recent quarterly contractions in key sectors like residential investment and exports underline lingering weaknesses. Inflation and lingering trade pressures remain headwinds even as overall economic conditions inch toward recovery.
Japanese corporate bankruptcies increased again in December 2025, marking the fourth consecutive year of growth for the month. Total liabilities reached their highest level of the year, driven by several large failures and continued pressure on small and medium-sized firms. Service and wholesale industries were particularly affected, while regional data showed sustained weakness in the Kanto and Kansai areas.
China’s gross domestic product (GDP) expanded by 5.0% in 2025, crossing the ¥140 trillion mark as the 14th Five-Year Plan concluded. Production, services, and industrial performance showed resilience even as domestic demand softened. Quarterly figures showed slower growth in the fourth quarter, prompting cautious projections for 2026.
China’s economy remained resilient in 2025, supported by accommodative policies and robust external demand, though household caution and investment moderation persist. Structural reforms aimed at boosting consumption and business confidence are seen as critical for sustaining future growth.
China’s economy continued moderate expansion through late 2025 supported by policy easing and export resilience, but persistent weakness in domestic demand and structural challenges highlight the need for deeper reforms to sustain growth into 2026.
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