Despite geopolitical risks and uncertainties, most of the world has experienced stable growth, but structural issues are becoming more apparent as economic expansion slows.

The Federal Reserve faces constraints amid rising inflation, a weakening labor market, and political pressures to cut interest rates.

South Korea's economy is under pressure from weak domestic demand and potential export declines due to high tariffs affecting its auto and chip industries.

Global trade, geopolitics, and structural challenges create a cautious optimism, with equity markets outperforming expectations driven by AI and hopes for reduced trade tensions.

European economies, especially Germany and France, are facing recession risks due to loss of manufacturing competitiveness, skill shortages, and fiscal challenges, while Southern European countries show some fiscal improvement.

The UK economy has stagnated amid high living costs and strained public services, while Japan is grappling with inflation and a shift to hawkish monetary policy despite declining global demand.

The U.S. economy's growth is slowing due to trade policies, immigration issues, and social spending cuts, with signs of manufacturing weakness and a less robust labor market, even as stock markets reach new highs fueled by AI optimism.

Russia's growth prospects are limited by increased military spending and falling energy prices, while Latin American economies like Brazil and Mexico face slowdowns, with Mexico showing resilience despite weak investment.

India's economy remains strong, driven by resilient consumers and manufacturing investment, but recent tensions with the U.S. threaten foreign investment and job creation.

Policymakers are encouraged to leverage this period of relative calm to implement reforms and disciplined policies to build economic resilience amid increasing volatility.

The global economy has shown surprising resilience despite challenges like tariffs and geopolitical upheavals, but cracks are beginning to appear beneath the surface.

China maintains stable growth but faces unbalanced expansion, deflationary pressures, and a struggling housing market, despite a surge in equity markets driven by AI and government measures.