The standout economies of 2025
Despite fears of a recession early in the year, global GDP is on track to grow around 3% matching last year’s pace, supported by strong labor markets and steady market performance. But behind this stable aggregate picture is sharp divergence.
According to The Economist’s annual ranking, Portugal claims the title of 2025’s top-performing economy, driven by strong GDP growth, low inflation, rising tourism, and a vibrant stock market. Southern Europe more broadly continued a remarkable run, with Greece and Spain also near the top.
Meanwhile, several northern European economies struggled under the weight of inflation and slow growth. The U.S., despite a solid job market, landed only in the middle of the pack — held back by elevated inflation relative to peers.
The data tells a clear story: Inflation management and growth momentum defined economic success in 2025. Countries that balanced both rose to the top. Those unable to do so fell behind.
As we look ahead to 2026, the key question becomes whether these trends stabilize — or if shifting global trade, interest-rate paths, and geopolitical tensions reshape the landscape again.
Source: https://www.economist.com/finance-and-economics/2025/12/07/which-economy-did-best-in-2025
