068. Finance trends: Declining Interest Rates and Economic Recovery

In 2025, falling interest rates are supporting economicrecovery, though global growth remains subdued at 2.3%. Central banks are cautiously easing policy, with mortgage rates falling and some regions pausing rate cuts due to persistent inflation. While lower rates are encouraging lending, investment, and activity in sectors like real estate and energy, challenges such as rising public debt, inflationary pressures, and global trade tensions are constraining growth.Financial institutions and investors are focusing on proactive strategies and stable assets, while governments prioritise infrastructure spending. The outlook is cautiously optimistic, with moderate growth expected as economies adapt to persistent debt and trade barriers.