This podcast features insights from Morgan Stanley's Global Chief Economist on the outlook for the global economy in 2025, with a strong focus on the prevalent policy uncertainty. It explores how changes in US policy could influence inflation and growth, suggesting that disinflation might slow down due to tariffs and immigration policies, while acknowledging the unpredictability of these outcomes. Additionally, the discussion delves into the economic climates of China, the Euro area, and Japan, stressing the complications introduced by US policy uncertainty and the possibility of increased interest rates in Japan. The overarching theme is one of caution, highlighting the high uncertainty that necessitates regular updates to forecasts. The key takeaway is that the upcoming year is viewed as the most uncertain time since the pandemic began.
