Businesses Face Persistent Risks and Growth Opportunities as Global Economy Undergoes Transformative Shift, Aprio Wealth Management 2025 Economic Outlook Reveals

BY PR Newswire | ECONOMIC | 02/05/25 11:27 AM EST

Annual research explores how businesses, executives and investors should rethink traditional approaches for navigating today's global macroeconomic environment

ATLANTA, Feb. 5, 2025 /PRNewswire/ --?Aprio Wealth Management, a subsidiary of?Aprio, LLP, the 25th?largest business advisory and accounting firm, released its?5th annual Economic Outlook, providing a comprehensive roadmap for investors, executives and business owners navigating the economic challenges and opportunities in the year ahead, emphasizing adaptability, innovation and readiness for a more active dealmaking landscape.

Aprio Logo (PRNewsfoto/Aprio)

This year's Outlook focuses on the global economy undergoing a transformative shift, through persistent fiscal deficits, structural labor constraints and geopolitical competition, which are redefining traditional economic paradigms. While these challenges are notable, Aprio finds significant opportunities for business owners, executives and investors.

"Aprio's 2025 Economic Outlook underscores how we are navigating a transformative economic transition that will require our clients to critically rethink traditional approaches," said?Simeon Wallis, Chief Investment Officer, Aprio Wealth Management. "Our goal is to provide business owners, executives and investors with a strategic path forward that ensures their wealth management and business strategies have long-term success amid such a transformative era."

Some of the key themes revealed in the Outlook include:

Agility Amid Transition for Businesses

  • The global economy is undergoing structural shifts, including stickier inflation, supply chain reconfigurations and labor market constraints.
  • A new administration in Washington, with pro-business goals like deregulation and tax cuts, also introduces uncertainty around immigration, tariffs and government efficiency reforms.
  • Businesses must adopt the "First Principles Thinking" approach, a problem-solving method that emphasizes the adaptability and strategic foresight to remain competitive in an evolving landscape.

Productivity Unleashed Driven by Technology

  • Technology is driving massive productivity gains, particularly in areas like AI, automation and data-driven decision making, transforming business operations and long-term competitiveness.
  • Post-pandemic booms and busts in sectors like real estate, logistics and consumer services are stabilizing, creating opportunities for growth and recovery in markets that experienced volatility.
  • The Federal Reserve's (Fed) evolving interest rate policy, with a cautious easing in 2025, will significantly impact borrowing costs, investment decisions and business cash flow, requiring careful navigation of financial strategies.

The Deal Boom is Set to Begin

  • Deal activity in private equity and M&A is poised to accelerate rapidly, driven by abundant capital, a favorable regulatory environment and opportunities for consolidation across industries.
  • Companies in all sectors should prepare for increased private equity transactions, positioning themselves as attractive acquisition targets or capitalizing on industry-wide consolidation trends.
  • Strategic preparation, including improving operational efficiency and cash flow visibility, will be essential for capturing value in this dynamic environment.

"We're seeing a delicate balance of growth opportunities and persistent risks across the global economy," noted Wallis. "Risks inclusive of above-normal interest rates, disrupted supply chains and labor shortages. Yet, opportunities are present through technology advancements and energy transitions. Businesses and investors must navigate an era where economic fundamentals are influenced by political decisions as much as they are by market dynamics."

To view the full 2025 Economic Outlook, click?here, and to learn more about Aprio Wealth Management, visit the website here.?

About Aprio Wealth Management

Aprio Wealth Management empowers high-net-worth individuals, business owners, and families with seamless, personalized, contextual advice by integrating tax planning, financial planning, and investment management. As Registered Investment Advisors (RIAs) we are held to a fiduciary standard to operate in our clients' best interests while providing transparency into portfolio holdings and fees. We invest in the best people, processes, and technology to deliver a better wealth management client experience. In turn, clients honor us with their trust and invest with us across businesses and generations.

Investment Advisory services are offered through Aprio Wealth Management, LLC, an independent Securities and Exchange Commission Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/ or tax professional before implementing any strategy discussed here.

About Aprio, LLP

Aprio is the brand name under which Aprio, LLP, and Aprio Advisory Group, LLC, deliver professional services. Since 1952, clients throughout the U.S. and across more than 50 countries have trusted Aprio for guidance on how to achieve what's next. As a premier business advisory and accounting firm, Aprio Advisory Group, LLC, delivers advisory, tax, managed and private client services to build value, drive growth, manage risk and protect wealth, and Aprio, LLP, provides audit and attest services. With proven experience and genuine care, Aprio serves individuals, entrepreneurs, and businesses, from promising startups to market leaders alike.?Aprio has grown to 2,000+ team members providing solutions to clients in industries including Manufacturing and Distribution, Non-Profit and Education, Professional Services, Real Estate, Construction, Restaurant, Franchise & Hospitality, Government Contracting, and Technology and Blockchain.

Follow Aprio:

Aprio Wealth Management Website:?https://www.wealth.aprio.com/
LinkedIn:?https://www.linkedin.com/company/aprio
Facebook:?https://www.facebook.com/aprioadvisors
Twitter:?https://twitter.com/AprioAdvisors
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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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