An outlook on the Economy in 2025
2024’s word of the year?
Exceptionalism? ChatGPT? Skibidi?
In 2024 the US burnished its exceptionalism through vastly superior productivity, securing its position as the world’s premier investment destination. Now, energised by his second rodeo, President Trump’s targeting the US’s weak spots. MAGA 2.0 will keep the world on edge.
AI is the world’s most powerful technology yet, holding netizens in awe since the launch of ChatGPT. However, AI remains a well of unprofitability. In 2025, Agentic AI, which thrusts AI from reactivity to fulfilled tasks, like an AI Agent using software to curate an end-to-end vacation, could be the fabled genie of monetisation.
Skibidi? For those over the age of 25, allow me to clarify: it’s pronounced “skippity”. The Gen-Z term which wavers between “cool” and “awful”, its essence gleaned through context. “Skibidy rizz” means you’re alluring, “skibidy Ohio” means you’re not. Gen-Z and, more latterly, Gen Alpha, are intertwining tech and urban lexicon to redefine modern youth culture. It’s a lifestyle reboot. How ever will we keep up?
Lastly, turning to South Africa, the coalition government spawned from last May’s election has engendered a long-elusive beacon of hope. There is budding belief that South Africa’s economic upswing can be politically secured, at least until the ANC’s pivotal party elections in 2027. The economic growth rate will double this year, vindicating the early cause for cheer.
Welcome to 2025. It’s going to be fun.
Goolam Ballim
Chief Economist Standard Bank Group