U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Financial appraisal

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 Financial appraisal is a process used to evaluate the financial viability of an investment opportunity. It involves the use of financial metrics and analysis to assess the feasibility and profitability of a project, business venture, or asset.

The financial appraisal typically involves the following steps:

  1. Identify the investment opportunity: This involves defining the scope and objectives of the project or investment opportunity.

  2. Estimate the cash flows: This involves forecasting the expected cash inflows and outflows associated with the investment opportunity.

  3. Determine the discount rate: This involves identifying the cost of capital or required rate of return to discount the expected cash flows back to their present value.

  4. Calculate financial metrics: This involves using financial metrics such as net present value (NPV), internal rate of return (IRR), payback period, and profitability index to evaluate the feasibility and profitability of the investment opportunity.

  5. Sensitivity analysis: This involves testing the sensitivity of the financial metrics to changes in key assumptions, such as the discount rate or expected cash flows, to assess the robustness of the financial appraisal.

The financial appraisal process helps investors and decision-makers to make informed decisions about whether to pursue an investment opportunity or not. It helps to identify the risks and potential returns associated with an investment, and to assess whether the investment is likely to generate a positive return on investment.

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