The global economy in 2025 faced significant headwinds including deepening inflation, energy market volatility, and shifting trade dynamics, slowing growth and intensifying cost-of-living pressures. Major economies like the UK and US grappled with affordability, while Europe and Japan contended with budget deficits and tax hikes. China's real estate crisis and geopolitical tensions further reshaped global markets. The World Bank projected global growth to slow to approximately 2.3%, marking one of the weakest rates outside recessionary periods since the late 2000s, indicating a year of structural recalibration.