As we stand at the start of another new year, 2025 looks set to be another year of transformative change. From political and economic upheaval around the world, to the widespread adoption of new technologies and the continuing push towards a more sustainable and equitable society – there are multiple interconnected trends that are sure to have long-lasting impact on how we do business.

Our annual look at these trends draws together insights from reports by Deloitte, CB Insights, Mintel, Ibis and industry experts, dissecting their forecasts and demystifying the implications for SMEs looking to grow and scale.

This year, we’ve also prepared sector-specific articles for a few of our key audiences, offering analysis to inspire curiosity, provoke thought, and arm our community with actionable insights. Read on for a general introduction to the trends shaping the next twelve months, or jump straight to one of our industry reports:

The Global Political and Financial Landscape

The economic trends shaping 2025 will be deeply influenced by geopolitics, inflation, migration flows, and policy decisions that will have a profound impact on global businesses and consumer behaviour.

The United States’ economy remains robust, driven by technological innovation and strong consumer spending. However, rising interest rates – a tool to combat persistent inflation – are likely to increase borrowing costs for businesses, potentially slowing investment growth.

Geopolitical tensions, particularly trade disputes with China over semiconductors and AI technologies, are reshaping supply chains. The Biden administration’s CHIPS Act, aimed at boosting domestic semiconductor production, is a direct response to these tensions and is expected to create significant opportunities in tech manufacturing.

Trump’s administration is expected to prioritise protectionist trade policies, likely reigniting tensions with China over tariffs and technology exports. For businesses in the UK and around the world, this could mean increased costs for goods reliant on Chinese components, particularly in sectors like electronics and automotive manufacturing.

Additionally, Trump’s push for deregulation and tax cuts may boost US-based industries but could create volatility in global financial markets. Consumer confidence within the US is projected to remain divided. For global markets, including the UK, Trump’s policies are likely to impact exports. The UK’s post-Brexit trade agreements with the US might be revisited, introducing uncertainties for SMEs involved in transatlantic trade. Furthermore, these measures could drive up costs for US businesses reliant on imports, compelling them to seek local alternatives or diversify supply chains.

The European Union continues its slow recovery from the pandemic, with GDP growth projected at 1.3% in 2025. Energy independence remains a priority following the Russia-Ukraine conflict, pushing investments in renewable energy and reshoring critical industries.

Policies such as the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD) are reshaping industries, compelling businesses to adopt greener operations and increase transparency. Although the UK is not a signatory to these regulations post-Brexit, the new environmental and sustainability norms are likely to impact anyone intending to do business across EU borders.

Migration flows into the EU are reshaping labour markets, with industries like construction, healthcare, and logistics benefiting from an influx of workers. However, political tensions surrounding immigration policies could create uneven labour distribution across member states.

Closer to Home

The UK faces a unique blend of challenges and opportunities under the Labour government, which is prioritising health sector investment, sustainable infrastructure, and regulatory reforms to drive productivity and economic growth. Despite projected GDP growth of 1.2% in 2025, slower than the Bank of England’s 1.5% forecast, the government’s policies aim to address structural weaknesses while maintaining fiscal discipline.

The NHS remains a top priority, with the government pledging £8 billion in additional funding to reduce patient backlogs and improve staffing levels. This focus on healthcare modernisation is expected to boost medtech and healthtech opportunities, particularly for SMEs developing AI-powered diagnostic and patient management systems. However, questions remain about long-term funding sustainability and how easy it is to engage with procurement processes within the NHS.

Inflationary pressures are expected to ease throughout 2025, with inflation forecast to fall to 2.3% by Q4 2025 – below the Bank of England’s projections. Goldman Sachs predicts that the Bank will continue cutting interest rates from 4.75% to 3.25% by mid-2026 to stimulate growth. While lower borrowing costs may support business investment, cautious consumer spending amidst the ongoing cost-of-living crisis will challenge B2C businesses to offer value-driven solutions.

The UK’s trading relationships remain in flux. Uncertainty over potential US tariffs under Trump’s administration weighs on business confidence, though negotiations for a US-UK free trade agreement could offset some risks. Simultaneously, discussions with the EU on regulatory alignment signal potential for closer cooperation under the Labour government, but the benefits may be limited compared to the broader economic costs of Brexit.

The government’s proposed planning reforms aim to address housing shortages and boost residential investment. By easing restrictions on urban development, these changes could gradually improve labour mobility and productivity. However, the long-term impact on GDP growth depends on effective implementation and alignment with environmental standards.

Emerging Technologies

Generative AI and AI agents are predicted to continue their rapid development in 2025, reshaping industry sectors on a larger scale than anything seen since the arrival of the internet. However, even as AI becomes more ingrained into our everyday lives, much of the technology is still unproven and evolving faster than our ability to keep up with it, creating thorny issues for any SME planning to use it effectively and ethically.

Read our full trends report on AI here.

HealthTech and MedTech

Healthcare is one of the industries that as been earmarked for transformation by these emerging AI technologies – but there is still uncertainty over how it might be implemented within an organisation of the scale and complexity of the NHS. Nevertheless, global technology businesses are investing in transformative healthtech and medtech innovations that may become a reality sooner than we think.

Read our full trends report on HealthTech and MedTech here.

Sustainability and Social Purpose

With energy independence and the transition from fossil fuels becoming an ever more pressing concern, incoming legislation is prompting all forward-thinking businesses to act on their net zero plans. It’s part of a wider pattern of “for-purpose” brands not only supporting social causes, but embracing them as the foundation of their identity and business model.

Read our full trends report on Sustainability and Social Purpose here.