CIBC – Perspectives, Jan 2025

The main theme of the report concerns global economic strategy and asset analysis in the context of current economic conditions. Key findings include expectations for moderate global economic growth in 2025, resilience in the US economy with anticipated growth in investment and consumption, significant recovery in Canada due to Bank of Canada's policies, modest improvement in Europe, and persistent pessimism in China. Global inflation is likely to continue declining, but in the US, it will remain above the Fed's target level. The Fed is expected to end its rate-cutting cycle earlier than the Bank of Canada and the European Central Bank. Corporate earnings growth may lead to positive equity returns, and bonds appear attractive due to high initial yields.