Global Finance Faces Paradigm Shift Amid Decelerating Growth
The global financial system is undergoing a structural transformation as it transitions from an era of globalization to a fragmented, multipolar order. Dubbed the NAVI world—nonlinear, accelerated, volatile, and interconnected—this new environment demands sophisticated risk mitigation strategies. Global growth is projected to slow to 2.3% in 2025, the weakest decadal average since the 1960s, with advanced economies particularly hard hit at just 1.2% expansion.
Trade barriers, monetary policy divergence, and the rise of non-bank financial intermediation are converging to create systemic risks. Financial institutions must now integrate macroeconomic forecasting, derivative hedging, and technological resilience to navigate this uncertain landscape. The tepid recovery expected in 2026-2027 offers little consolation for markets already bracing for prolonged stagnation.
