Earnings and Sales Growth: In 2025, strong double-digit earnings growth and mid-to-high single-digit sales growth is expected from the developed and emerging worlds, taken as a whole. Emerging market growth numbers still appear generally higher than in developed markets at the region level, which is typical. From a region perspective, Europe’s earnings growth is projected to be 11.0% next year, though the region is likely to face continued geopolitical uncertainties, particularly with the ongoing war in Ukraine and the potential trade shake-up that could result from the incoming U.S. administration. Emerging Asia has the highest EPS growth expected for 2025 at 14.1%. However, poorly implemented fiscal stimulus or possible political turmoil could play spoiler to these great expectations.
Earnings Expectation Trends: China’s earnings growth is expected to be 12.1% in 2025, though economic stimulus and foreign relations (esp. regarding trade and technology) could continue to impact this number. South Korea’s high 19.2% forecasted median EPS growth has tempered by -6.1% Q/Q. Business sentiment has declined over lagging exports and demand in the domestic market. In the Americas, Canada is expected to see 10.5% median earnings growth next year, slightly lower than the U.S., likely reflecting slower recovery in commodity prices and the impact of global trade disruptions. These estimates have been relatively stable along with many other large developed nations this period
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