Here are the highlights of Saxo Bank's forecast for this year, according to Sputnik.
The US dollar loses its position
When Donald Trump returns to the White House, his protectionist trade policies could severely weaken the dollar, Saxo Bank said. High tariffs on imports and changes in trade relations would cause the dollar to fall by up to 20% against major currencies and 30% against gold.
Meanwhile, BRICS+ countries will increase the use of gold-backed digital currencies, or new yuan for international markets. As a result, the cryptocurrency market could grow fourfold to $10 trillion.
Electrification boom, OPEC "runs out of breath"
China’s lead in electrification, with electric vehicle sales accounting for more than 45% of total vehicle sales, could have a global domino effect. If other countries follow China’s lead, oil demand will plummet, sending oil prices tumbling.
This will put pressure on OPEC members, which rely on oil revenues. However, low oil prices could be good news for the aviation, chemical and transport industries, thanks to a significant reduction in fuel costs.
NVIDIA: The "King" of the AI Era
The explosive growth of artificial intelligence (AI) is being likened to a new “gold rush,” with NVIDIA, the leading chip maker, playing the role of a “shovel seller” for Bitcoin mining.
In 2025, NVIDIA plans to launch a Blackwell chip line with 208 billion transistors, providing 25 times more AI performance than the previous generation. As a result, NVIDIA could surpass Apple to become the most profitable company of all time, with expected profits exceeding $105 billion.
NVIDIA shares could rise to $250, doubling the company's market capitalization to 10% of the global stock market value.
Natural disasters and the nightmare of the insurance industry
Climate change continues to push the world into dire scenarios. According to Saxo Bank, 2025 could see a superstorm in the US that causes damage far exceeding the $40 billion cost of Hurricane Katrina in 2005.
One of the largest insurance companies in the United States could go bankrupt after misjudging the risks of climate change, leading to underpricing of policies. This would trigger a domino effect, eroding confidence in the insurance industry and causing real estate values, especially homes, to plummet.
Saxo’s forecast highlights scenarios that are unlikely but could have a big impact if they happen. From the possibility of a depreciating US dollar, OPEC’s decline, NVIDIA’s rise, to climate change risks, the global picture is facing upheavals that cannot be ignored.
While these forecasts are hypothetical, in a volatile global economic environment, Saxo Bank's "shocking" forecasts are a warning about the complexity and uncertainty of the market.
2025 could be a year of major change, with events that will have far-reaching impacts, from politics, energy, technology to climate change. The question remains how countries, businesses and investors will face and adapt to these challenges.
