A new study explores how businesses, executives and investors should rethink traditional approaches for navigating today’s global macroeconomic environment.
The fifth annual Aprio Economic Outlook, provides 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 deal making landscape. Aprio Wealth Management is a subsidiary of Aprio, LLP, the 25th largest business advisory and accounting firm in the U.S.
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.
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Tags: Accounting, Aprio, economic outlook, economy, global economy, risk, Small Business, trade
