Bank of America (BofA), one of the world's leading investment banks, published its economic projections for 2025, highlighting important aspects to understand the future of the markets in the coming months.

From a strengthening dollar to volatility in emerging markets, these BofA projections for 2025 highlight a year of significant change and strategic opportunities to watch for:

1. S&P 500 with upside potential. Savita Subramanian, head of equity strategy at BofA, forecasts growth of more than 10% for this index, with gains accelerating to 13% by 2025.
2. U.S. Economic Growth BofA expects U.S. GDP to grow 2.4% year-over-year in 2025, driven by higher productivity and a favorable mix of fiscal policies that foster economic growth.
3. U.S. interest rate cut. The Federal Reserve (FED) is expected to cut interest rates twice during 2025, which would stabilize Treasury bond yields in a range close to 4%-4.5%.
4. Slowdown in commodity prices commodities. The prices of key commodities - such as oil and metals - are expected to weaken due to a decline in demand. In addition, gold is expected to reach a peak on the peak of up to US$3,000 per ounce.
5. Dollar strength through mid-2025 .. The U.S. bank expects the dollar to remain strong - at least - until the first half of the year. There could be a weakening in the second half of 2025 due to growth and policy uncertainty.
6. Short-term risk for emerging markets. Although emerging markets may face near-term challenges from uncertainty over U.S. policy, they are expected to improve as the situation becomes clearer, especially if the dollar reaches its peak.
7. Survival of US cyclical assets. Cyclical sectors - such as manufacturing - are expected to outperform by 2025, driven by a favorable economic period.
8. Strong demand for credit. Demand for credit will continue to be exceptionally strong, resulting in a positive performance for developed credit markets for the third consecutive year.
9. China's slower growth. The Asian Giant's real GDP growth is expected to slow to 4.5% y-o-y in 2025, while domestic stimulus offsets the impact of tariffs.
10. Recovery of euro zone equity markets .. The head of European equity strategy at Bank of America estimates a 7% drop in the Stoxx 600 by mid-2025, followed by a recovery that will take the indices to levels close to current levels.

This nuanced view of global markets, with expectations of moderate growth, interest rate adjustments and significant policy moves, seeks to track trends and understand the impact on markets and the global economy for the year ahead.

Source: Bank of America