Balancing act

This NatWest Economic Update examines the mixed global economic outlook as we enter 2025, focusing on inflation pressures, labor market dynamics, and policy shifts across key regions.  

Key Insights:
• UK Economy: Weak retail sales growth of 0.5% in December reflects subdued consumer demand; house prices saw modest annual growth of 3.3%.  
• Eurozone Inflation: Inflation at 2.4% remains under ECB projections, with further rate cuts expected amid resilient labor markets.  
• U.S. Trends: Strong December job growth (256k) and a 4.1% unemployment rate suggest the Fed may pause rate cuts.  

For a detailed analysis of these developments and investment strategies, access the full report.