Fast forward to the present—economic growth is slowing around much of the world as the impacts of tariffs and weak consumer sentiment have taken hold. The pace of this slowdown is highly variable. Economies that are particularly trade-exposed and with weak domestic consumption have been impacted the most. Conversely, economies where domestic consumption has remained robust or where it has been supported by tourism expenditure, such as in southern Europe, have performed more strongly. Despite this weaker economic backdrop, positive retail sales growth has been recorded across most of the world. On a more positive note, while the situation remains fluid, there has been some stabilisation in confidence. Near-term economic trajectories are becoming clearer, though downside risks persist. Growth is expected to stay sluggish in the near term, but inflation remains largely under control. In the U.S., a cautious stance on rate cuts has given central banks flexibility to implement further reductions, if needed, to boost growth. As a result, regional economies are forecast to hit their nadir in Q4 2025 or Q1 2026 before experiencing an uptick in growth that is expected to last through the year and into 2027.
FIGURE 2B: CONSUMER SENTIMENT
110
108
106
104
102
100
98
96
94
92
90
AUS
CHN
JPN
KOR
Euro
UK
US
Source: OECD
27
CUSHMAN & WAKEFIELD
MAIN STREETS ACROSS THE WORLD 2025
Powered by FlippingBook