Chief financial officers are expected to ensure their organisations are 'shored up' from fluctuations in interest rates and yields in 2025, according to Forvis Mazars.
George Lagarias, chief economist at Forvis Mazars Group, says in terms of macroeconomic indicators, leaders should be focusing on credit spreads and sovereign yields, amid a positive yet challenging growth outlook for 2025.
People should understand and prepare for the consequences of a potential debt crisis, and CFOs face the need to deregulate the finance system as it will be the key to unlocking growth for businesses and generate more healthy competition in the market.
The debate on reducing regulation will continue and will be the game changer that could influence the overall geopolitical challenges and outlook for 2025, according to Lagarias.
"I see reason for cautious optimism, but uber optimism should be avoided, especially considering the shift in geopolitics, supply chains, very high company valuations and very high debt levels fuelling meagre growth."
He says business leaders must not be blind to the risks, which are significant, and need to continue to build resilience, predominantly through their supply chain and by shoring up debt obligations.
