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In 2024, over 70 countries held elections, and almost half of the world's population was involved in voting. Usually, the election seasons throw economies into turmoil; however, this was not the case in 2024.
Even with the year having a record number of elections, the global economy performed better than expected by critics. Numerous global stock markets closed on a high, and even struggling economies remained stable.
Based on this outstanding performance, experts predict an even better 2025 for investors. If you want to make big profits, here are the top 4 financial predictions of where to invest your money in 2025.
Rise in green energy investments
The world is on a countdown to meet the Sustainable Development Goal of ensuring global access to sustainable, affordable, reliable, and modern energy for all — 2030 is only 5 years away. Government subsidies for renewable energy projects such as wind, solar, and battery storage projects have been slowly increasing yearly.
They are now expected to hit all-time highs in the next few years. This move has aimed to create the best environment for the shift to renewable energy research and investments.
The latest S&P Global Commodity Insights report predicts that green energy investments will be higher for the first time in history than upstream oil and gas spending.
What's more, green energy investments are expected to hit $670 billion in 2025, so investing in companies leading in these clean energy solutions sectors could have you reaping major returns.
Highest Bitcoin surge yet to happen
In 2024, the Bitcoin surge was fueled by the halving event, the approval of spot Bitcoin ETFs, and Donald Trump's promise to promote cryptocurrency growth if he won the presidential elections in the U.S.A. A few days after being sworn in as the 47th President of the United States of America, the President kept his promise by releasing executive orders for the protection of banking services for crypto companies and the formation of a cryptocurrency task force to propose new digital asset regulations and look into creating a national cryptocurrency fund.
This executive order was an immense display of support for cryptocurrencies and caused the price of Bitcoin to surge by 3% up to $105,000. By the end of 2025, the price of one bitcoin is forecast to reach a staggering $250,000. Therefore, while investing in crypto may sometimes feel like playing free slots games online, where luck is the key, President Trump's backing of this industry is more than an assurance of the best days ahead for crypto investors.
Growth in demand for cybersecurity
Today, more and more industries are embedding AI-driven solutions and AI-driven technologies into their processes. The "Applier" phase of AI is now taking shape, with the focus being on using AI to develop practical and transformative solutions for use.
The Global Cybersecurity Outlook 2025 by the World Economic Forum reports that in 2025, the global demand for cybersecurity professionals will exceed its supply. This is because while AI has become a positively transformative technological advancement, it has also been used by attackers to develop sophisticated cyber threats.
Additionally, securing developed AI models and the data they generate is becoming a growing challenge. In 2025, businesses and governments are expected to invest heavily in cybersecurity and prioritize the protection of sensitive data as well as their AI systems. Investing in AI-powered cybersecurity solutions will ensure you are in business and making money all year long in 2025.
Lowered interest rates by central banks
In 2024, high inflation rates continued to be a challenge globally. Countries worldwide implemented measures to lower inflation, with central banks lowering interest rates being one of the most common measures undone.
The European Central Bank (ECB) made 4 cuts in 2024, with the latest reducing its key interest rate by 0.25% to 3%. While this measure slightly improved inflation, Europe's economic growth remains weak. Experts anticipate further interstate rate cuts by the ECB in 2025 and are looking to rates being as low as 2% by mid-year.
The U.S. Federal Reserve, on the other hand, made three cuts on interest rates in 2024 to close the year at a range of 4.25% to 4.5%, down from 4.5% to 4.75%. At least two more cuts are expected in 2025 by the U.S. Federal Reserve as it works to lower inflation rates in the country.
This interest rate cut by central banks in the U.S. and Europe represents the global situation as nations struggle to reduce inflation to pre-COVID levels. This easing of monetary benefits, such as real estate and the financial sector, makes them good investment options in 2025.2025 is anticipated to be a pivotal year for markets.
Therefore, depending on your timeline, goals, and risk tolerance, investing in businesses, industries, and markets to be influenced by any of these top 4 financial predictions is a sure bet to making good returns on your investments.