Key global economic transformations in 2025

The global economy is currently going through a delicate phase in which commercial and monetary factors are deeply intertwined, directly impacting global market movements. Amid rising uncertainty, a set of major economic transformations has emerged, shaping the current landscape, most notably tariffs, movements in gold and silver, geopolitical tensions, and the strong performance of the technology sector alongside fears of a potential bubble.

Donald Trump’s Second Term and April 2: A Turning Point for the Economic Landscape

U.S. President Donald Trump took office for his second term on January 20, 2025, beginning a new chapter as president of the world’s largest economy, the United States. One of the key pillars of his agenda was tariffs aimed at reducing the U.S. trade deficit.

On what Trump called “Liberation Day,” April 2, 2025, he announced the imposition of comprehensive tariffs on imports into the United States from most countries worldwide, with a general minimum rate of around 10%, and higher rates on certain major trading partners. This move aimed to protect American industry and reduce the trade deficit, but it represented a major shift in the global trading system and triggered widespread economic and political reactions.
As we approach the end of 2025, markets have witnessed three major trade agreements between the United States and Japan, the United Kingdom, and the European Union. Meanwhile, the issue of a trade truce and the possibility of its evolution into a solid and permanent trade agreement between the United States and China, remains one of the most important and closely watched files between the world’s two largest economies.

Gold

No individual whether investor or saver can consider 2025 a long-term investment benchmark for gold, as its strong performance was driven by a convergence of exceptional factors. Gold continued to serve as a hedge against inflation, preserving capital as the value of money eroded, while its role as the primary safe-haven asset was reinforced by a trade war that pushed investors and countries such as China and India to increase purchases amid fears of tariff-driven inflation and reduced reliance on the U.S. dollar. At the same time, the return of the U.S. president and pressure on the Federal Reserve to cut interest rates raised doubts about the Fed’s independence, while the longest government shutdown in the history of the world’s largest economy heightened uncertainty. These dynamics were compounded by ongoing geopolitical tensions in the Middle East, alongside the Federal Reserve’s accommodative policy, declining interest rates, and a drop of more than 10% in the U.S. dollar over the year, all of which supported higher gold prices.

Silver

Silver’s sharp rise in 2025 was driven by declining global supply, with inventories in China falling to their lowest levels since 2015, alongside the transfer of large quantities to Western markets to meet rising demand. At the same time, industrial demand particularly from solar energy and advanced technologies grew rapidly, pushing consumption to record levels.

Reports from the Silver Institute also indicate a structural deficit persisting for several years, as demand continues to exceed mine production and recycling. This imbalance has reinforced concerns over a global shortage and supported further upside in silver prices.

Technology Sector: Artificial Intelligence as a Force Reshaping the Global Economy

Since the emergence of ChatGPT in November 2022, financial markets have undergone a fundamental shift, with the technology sector, particularly artificial intelligence becoming the primary driver of global market trends and one of the most influential factors in the performance of financial indices throughout 2025. This transformation is no longer confined to major technology companies but has expanded to encompass the global economic structure.

Artificial intelligence has become an integral part of corporate business models across a wide range of sectors, from industry and energy to financial services and healthcare. This has led to higher operational efficiency, increased productivity, and a reconfiguration of global value chains. Such a profound shift has given companies and countries leading in this field a clear competitive advantage, transforming technology from a supportive tool into a strategic pillar of economic growth.

At the government level, artificial intelligence has moved to the forefront of strategic priorities for major economies, including the United States, China, India, Europe, and Asian countries, alongside the Gulf Cooperation Council states, most notably Saudi Arabia and the UAE, which are investing billions of dollars in AI and advanced technologies as part of long-term economic visions.
Qatar has also emerged as a key regional player in this transformation, accelerating investments in artificial intelligence, digital infrastructure, and innovation-driven policies to enhance economic diversification and strengthen its position within the global digital economy.

Accordingly, artificial intelligence is no longer merely a technological advancement; it has become a key driver in reshaping the global economy and shifting the balance of power and strategic influence among nations, standing out as one of the most significant economic transformations that will define global growth in the years ahead.

What Did 2025 Leave Us With for 2026?

The results and future outlooks of major technology companies provide early signals about the future health of the U.S. economy, which in turn affects other global economies.
 Gold remains a key beneficiary of ongoing uncertainty, trade disruptions, and geopolitical tensions. With the exception of a genuine and lasting trade agreement between the United States and China and an end to geopolitical tensions between Russia and Ukraine, gold prices are expected to move toward medium- to long-term stability. Silver, however, appears to be the biggest beneficiary in the coming phase due to its pivotal role in new energy industries and modern technology, making it a strategic asset in the global economic transition and positioning it to continue outperforming over the medium and long term.