Major economic powers are always sensitive to predictions and future outlooks of financial markets, studying them meticulously. Experts and pundits, based on data accumulated over years of market activity, analysis of trends, factors influencing them, as well as the peaks and troughs they have experienced, strive to develop theories and forecasts that assist countries in effective planning. At FFMag, you will become familiar with some of these predictions.
The Importance of Predictions and Future Outlooks of Financial Markets
In the vast and complex world of economics, there is always a constant principle: the lack of certainty about the issues and changes occurring in markets. Over time, stakeholders and experts manage this perpetual principle by striving to predict and estimate probable events.
Predictions and future outlooks of financial markets allow economic actors to consider suitable and necessary plans and take necessary actions based on them. These predictions refer to a set of actions and plans that make decision-making about future business performance and activities easy and possible, and they inform financial processes through the analysis of past information and data. Forecasting future finances and planning for it is important for the following reasons:
Annual National Planning and Budgeting
Countries, organizations, companies, and every economic entity at any level of activity require annual planning to allocate their budgets for program implementation and activities and protect against deviations and capital loss. Budgeting reflects the cash and financial processes of businesses and the position and ranking of entities, all structured based on predictions made about the financial and economic future.
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Setting Achievable Goals
By making financial predictions and considering future conditions, it is possible to set economic goals realistically and based on accurate performance.
Analysis and Recognition of Weaknesses and Critical Points
Financial predictions, through the study of past financial data and their analysis, reveal internal weaknesses, problems, and issues within structures and allow for action to be taken to address them for the future.
Minimizing Financial Risks
Until necessary predictions about the economic future are made, mastery over risks and threats that endanger the business situation will not be achieved. Many mistakes, errors, and incorrect decisions leading to loss and damage have occurred due to behaviors that have taken place without considering probabilities.
What Predictions and Future Outlooks of Financial Markets Have Been Proposed?
Given the importance of financial predictions, economists and theorists endeavor each year to express their perspectives and estimates on this matter. Now let’s discuss some predictions and future outlooks of financial markets that have been raised for the coming years. According to credible sources, global growth is increasing, but naturally, uniform growth cannot be expected for all regions and countries.
Inflation
Economic experts believe that inflation is higher than expected and their predictions suggest a decrease in the inflation rate due to policy adjustments to reduce economic pressures. Estimated reports indicate a reduction in core inflation in G20 countries from 6.6% in 2024 to 3.8% in 2025. These estimates are accompanied by a rate of 2.5% in 2024 and 2.1% in 2025 for advanced countries.
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Gross Domestic Product (GDP) Growth
Analysts believe that the world will experience a 2.9% increase in GDP in 2024, followed by a slight further growth to 3.0% in 2025. According to FFMag, these predictions were made by the OECD, which accurately estimated these figures for 2023 as well. This perspective also assigns a significant portion of global growth to Asian countries.
Gold Price
According to predictions and future outlooks of financial markets, the opinions indicate that the price of gold will experience steady growth in 2024. The reason for this is considered to be the instability of financial markets and increasing demand for precious metals. Many analysts believe that the XAUUSD rate as a symbol of gold will increase and surpass $2300. Considering the heavy shadow of regional policies on shaping the price of gold, an increase in tension between China and the United States is predicted to lead to an increase in the price of gold.
Dollar Exchange Rate
Opinions about the dollar exchange rate are also influenced by potential relations and tensions between political powers. Tensions between Russia, China, and the United States, amid military crises and a tendency towards trade disputes, are manifested in the form of economic and trade sanctions, contributing to an increase in the dollar exchange rate. The lack of stability in political positions and their fluctuations also emphasizes this matter.
Oil Price
The predictions and future outlooks of financial markets conducted by the Federal Planning Office estimate the price of oil to be $79 per barrel in 2024 and predict that this amount will decrease to $75 per barrel in 2025.
Summary
Every year, analysts and economic theorists strive to predict various economic indicators, such as the price of gold, inflation rate, GDP growth, and other economic indicators, by considering financial records and economic activities the world has gone through. Currently, some predictions and future outlooks of financial markets have been proposed for the near economic future in global markets, which FFMag presents by examining and discussing some of them.
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By David Taha