Tariffs, geopolitical tensions and climate risks are fuelling market volatility and challenging business operation, profit margins and growth potential. Economic outlook is uncertain, with unstable prices and fractured trade. Managing risks and building resilience are now imperative, while agile pricing actions and innovation are key to unlocking new opportunities. Targeting high-growing emerging markets can boost volume and diversify supply chains.

Significant shifts in US policies on tariffs, taxation, spending, regulation, migration, AI/tech, and energy are expected to impact the global economy and key industries like food and drinks, health and beauty, home and tech, travel, and automotive. Trump's policies can undermine global economic growth, affect consumer sentiment, risk higher prices, and disrupt production and distribution network. However, some opportunities will arise as the global supply chain rewires and consumers adapt.

This report highlights key trends in the global industrial sector in 2025. Rising geopolitical tensions and potential trade disruptions are creating more uncertainty for businesses, encouraging further production reshoring efforts. To deal with cost pressures and labour market challenges, companies are expected to invest more in automation and workforce upskilling. AI tools are also forecast to improve in 2025 and start bringing efficiency gains for manufacturers.

Inhalation - one of the most common modes of consumption globally - is undergoing a rapid transformation. This report assesses the significant risks for those companies who fail to address that change and the huge opportunities for those who can leverage science, technology and new substance frontiers to reimagine inhalation’s role in future societies.

Greater defence spending has hit state finances and instability continues to blight the political landscape, but economic freedom is solid. Unemployment is low, but the economy is underperforming peers and inflation remains stubbornly higher than target. High incomes will support the consumer market, but ageing is accelerating and social inequalities persist. Technology is a major contributor to the economy and innovation capacity remains high, but diversity in ICT employment is lacking.

Although economic freedom is challenging and corruption remains problematic, Cambodia’s state finances are sound. Economic momentum will continue to outpace peers, whilst tourism and foreign investment will be growth drivers. In the long term, incomes expansion will be robust, supporting the consumer market, as will a young consumer base, but the large prevalence of lower social classes will limit discretionary spending. Mobile technology adoption has been swift, but 5G rollout has stalled.

Improvements have been observed in economic freedom, helped by stable state finances, but a hereditary monarch undermines democracy. Economic progress has been muted and negatively affected by significant reliance on oil, but inflation remains controlled and foreign investment is solid. Population expansion and a youthful nation will support the consumer market, but the gender gap is substantial. Advanced technologies are a focus for the state, whilst internet and mobile use is high.

Challenges remain for economic freedom and conflicts have severely dented peace, but external help is backing state finances. The economy continues to exhibit strength and, although still high, inflation has fallen, but reliance on agriculture is a key risk. Income inequality is widening and the gender gap is meaningful, but a large children’s cohort will support spending in related items. Whilst mobile usage is growing strongly, internet penetration is low, but e-governance is making progress.

State finances have deteriorated in the short term, but corruption is being addressed effectively and economic freedom is improving. Economic development will outperform peers, but inflation remains stubbornly high and dependence on Russian imports is growing. Poverty has been reduced meaningfully, whilst the populace is expanding and youthful, but rural dwellers remain substantial. Although internet use trails peers, mobile technology adoption is strong and a new AI strategy has been unveiled.

Economic freedom in Myanmar is classed as ‘repressed’, whilst the ongoing civil conflict is considerably reducing peace in the country. The economy is set to significantly underperform peers, as conflict rages on that is exacerbating inflation and negatively impacting trade. Emigration continues to be a challenge, as is increasing food insecurity, but population growth will somewhat support the consumer market. Internet use is below peers, but mobile adoption has resumed its upward trajectory.

Sustainable state finances typify Tanzania and corruption is slowly being tackled, although economic freedom remains challenging and one party continues to dominate politics. Economic performance continues to be solid and inflation is contained, but foreign investment is below potential. Ageing is not a concern, but inequality is substantial and adds to gender disparity. Although internet use is low, mobile adoption is strong, connectivity has improved, and mobile money has gained traction.

Weakness in the rule of law and endemic corruption hinder economic freedom, whilst the budget deficit is widening. Economic progress has been lacklustre owing to oil production cuts, with oil playing a disproportionate role in the economy, but inflation is well contained. As a young and increasingly urban nation, Iraq’s consumer market is ripe for growth, but the dominance of lower social classes could depress incomes. Internet and mobile use is rising, but innovation is the lowest regionally.

External funding could help to steady state finances, but democracy is being eroded and economic freedom is challenging. Inflation is extremely low and foreign investment is on the rise, but the economy faces uncertainty generated by new US policies. As a relatively young nation that is growing, El Salvador’s consumer market is appealing, but the climate impact on the social landscape is meaningful. Internet and mobile use is increasing, whilst attempts are underway to support innovation.

Solid state finances and political stability characterise Côte d’Ivoire, but economic freedom has worsened as has relations with its neighbour. Robust economic performance has been accompanied by relatively low inflation, but the external sector is exposed to commodity price changes. Population growth and rising incomes will support the consumer market, but gender inequality is sizeable. A solid mobile sector has enhanced communications, but internet use is low and innovation needs improvement.

Although Ghana enjoys relative political stability and state finances have improved, corruption is endemic and hinders progress in economic freedom. Whilst inflation continues to hamper the economy and foreign investment is not an economic driver, Ghana’s output performance will be better than peers. The consumer market will be boosted by a growing population and the nation’s youthfulness, but inequality is prevalent. Internet and mobile use is solid, but 5G is yet to be launched commercially.

Although a one-party state creates political stability, corruption remains a major issue and the threat of a sovereign debt default persists. Whilst foreign investment is driving the economy, inflation remains very high and has been exacerbated by currency depreciation. A growing populace and reduction in poverty will support the consumer market, but the rural cohort is substantial. Internet penetration is rising well and 5G has been rolled out, but mobile technology faces challenges.

Flat tax rates boost economic freedom in Paraguay, but the ranking for economic freedom has slipped and corruption remains rife. The economy has exhibited resilience and inflation is well controlled, but dependence on agriculture creates risk for the external sector. Strong rises in incomes and solid population expansion will support the consumer market, but higher educational attainment is weak. Cooperation with other nations will help digital development, but 5G has yet to launch.

Although economic freedom is improving in Angola, it remains challenging and the state is increasingly authoritarian, but fiscal balances could improve. The economy is set to rally, but inflationary pressures remain substantial and oil dependence is extremely high. Although population growth will somewhat support the consumer market, high poverty levels and inequality will hamper consumer spending. Internet use is lower than more advanced regional peers, but mobile penetration is increasing.

Although achieving high approval ratings, the new president could face opposition to enact his policy agenda, whilst relations with the US over the Panama Canal are tense. Inflation is under control, but economic growth has been hit by the closure of a major copper mine. Relatively high incomes and population expansion will support the consumer market, but ageing is an increasing concern. Internet use is growing and mobile adoption is strong, which will be boosted by greater 5G availability.

Economic freedom in Kuwait has improved, but the executive branch of government is extending its power base and state finances have deteriorated. Diversification of the economy remains elusive, which is experiencing recession, but inflation has fallen meaningfully. A wealthy and expanding populace will support the consumer market, as will urbanisation, but inequality is widening. Connectivity is solid and foreign investment will drive innovation, but the fixed line network is contracting.

Whilst state finances remain sound and crime has somewhat reduced, relations with the US are worsening and corruption remains rife. Falling inflation is accompanied by steady economic progress, but reliance on the US and agriculture is meaningful. Solid population expansion will support the consumer market and Honduras is young, but poverty and inequality remain major concerns. Internet use is one of the lowest in Latin America and 5G is proving to be elusive, but schools are better connected.

Uganda remains ‘mostly unfree’ for economic freedom, corruption is rife, and peace is frequently disturbed by protests, but state finances are on a sound footing. The economy continues to grow robustly, driven by solid exports, but inflation is increasing again. As a young country, ageing is not an issue and the populace is growing strongly, but the gender gap is meaningful and poverty persists. Although mobile subscriptions are rising, internet use remains low, but innovation could be boosted.

Economic freedom is repressed and corruption is endemic, whilst state finances remain weak. Although deflation has taken some pressure off households, recession continued in 2023, but tourism could be supportive. Population expansion will boost the consumer market and discretionary spending could rise, but inequality is widening and higher educational attainment is very low. Mobile use is growing and prospects are bright for some technology sub-sectors, but 5G rollout has faced further delays.

Austria is embracing the politics of the far right and economic freedom has worsened, although state finances have somewhat improved. Inflation has fallen significantly, but the economy will suffer a second year of recession. Population growth is supportive of the consumer market and there will be a strong rise in foreign citizens, but the country is ageing quickly. Connectivity is solid and low digital skills are being addressed, but firms have yet to adopt advanced technologies meaningfully.