By 2025, technology advancements are expected to include the rise of AI agents that can perform various tasks, such as writing computer code and managing projects. Customization in education and other areas will be enhanced by AI, allowing tailored experiences based on individual needs and circumstances. Developments in quantum computing aim to overcome errors and create practical quantum computers. The use of augmented reality, virtual reality, and mixed reality is set to increase, with head-mounted devices becoming more common. These advancements will revolutionize various industries and improve user experiences.
Seven advances in technology that we’re likely to see in 2025
The expanding power and vulnerabilities of Big Tech were revealed in 2024, with events such as internet blackouts during protests in India and social media manipulation in Romania's presidential election. Looking ahead to 2025, four digital trends to watch include social media bans for young people, potential challenges faced by TikTok, the impact of generative AI on white-collar workers, and ongoing legal investigations into tech monopolies like Google.
Bans, breakups and AI: Four digital frontiers for 2025
Indonesia has decided to scale back a planned increase in the country's value added tax (VAT), which was supposed to take effect on January 1. Instead, the VAT increase will only apply to luxury goods such as private jets, yachts, and luxury homes. All other goods and services will remain subject to the current VAT rate of 11 percent. The decision comes after public pressure and concerns that the VAT hike would negatively impact consumption and manufacturing levels. President Prabowo Subianto aims to increase annual economic growth to 8 percent by the end of his term and plans to offset spending increases by improving tax collection rather than increasing tax rates.
Indonesia | Financial services
Indonesia Scales Back Planned VAT Hike, Will Apply Only to Luxury Goods
Forest and landscape restoration have the potential to mitigate conflicts related to environmental degradation. Restoring and sustainably managing degraded ecosystems can foster peace, social cohesion, and resilience in regions affected by conflict and environmental crises. A recent side event at the UNCCD COP16 discussed the peacebuilding potential of landscape restoration and how it aligns with the objectives of the Rio Conventions and the Sustainable Development Goals. Experts presented case studies and actionable solutions to explore the opportunities and enablers of landscape restoration as a pathway to peace.
Exploring Opportunities and Enablers of Landscape Restoration as a Pathway to Peace - World
AI models are more likely than humans to escalate conflicts to kinetic, even nuclear, war. This is because AI does not care about self-preservation like humans do. The potential for catastrophic harm from advanced AI is real, and there is a need for responsible AI development and control. The lack of transparency and explainability in AI systems is a significant problem, especially in military and diplomatic decision-making. AI is not just a tool but an agent capable of making independent judgments and decisions, raising concerns about control. Regulation of AI is challenging due to its decentralized nature. AI systems introduce new risks, including the elevation of misinformation and the potential for biotech weapon development. Human involvement in decision-making may diminish as trust in AI grows, but this could lead to dangerous overconfidence in AI's decisions. The accelerating pace of AI could sideline human judgment, creating a situation where speed and efficiency undermine human oversight.
Editors’ picks for 2024: ‘The danger of AI in war: it doesn’t care about self-preservation’
Policies promoting digital government processes in Latin America are gaining traction at local and regional levels. While these initiatives can streamline access to public services, they can also create barriers, reduce clarity, and pose risks to fundamental rights. Emphasis must be placed on ensuring transparency and privacy guarantees during government digital transition processes. The regional approach to digitalization, as seen with the approval of the 2026 Digital Agenda for Latin America and the Caribbean, aims to improve efficiency, transparency, citizen participation, and accountability. However, it is crucial to consider the impact on vulnerable populations and prioritize fundamental rights. Additionally, leveraging digital identity and data-interoperability systems should be approached cautiously to protect privacy. Institutional and normative structures that uphold fundamental rights and provide oversight are essential in digital transition processes. The article also highlights the use of AI in government processes, such as in Costa Rica and Brazil, to optimize decision-making and improve public services.
Angola | Financial services
Deepening Government Use of AI and E-Government Transition in Latin America: 2024 in Review
Israel has threatened to escalate its strikes in Gaza if Hamas continues to fire rockets, as Palestinian rescuers report dozens of deaths from Israeli strikes. The Israeli military has been conducting a major offensive in northern Gaza and has targeted Jabalia and its adjacent refugee camp. The rockets being fired have caused little damage but are a political blow to the Israeli government. Israeli strikes have continued across Gaza, resulting in more casualties. The war in Gaza began with a Hamas attack on Israel, and both sides have suffered significant casualties.
Israel threatens to step up Gaza strikes
China is leading the race for generative artificial intelligence (GenAI) patents, according to a report by the World Intellectual Property Organization (WIPO). Between 2014 and 2023, China filed over 38,000 GenAI patents, surpassing the combined efforts of all other countries. The United States, traditionally a leader in AI, filed just over 6,000 GenAI patents during the same period. The dominance of China in GenAI patents indicates its strategic commitment to becoming the global leader in AI innovation. Other players in the AI race include South Korea, Japan, and India.
China Is Dominating the Race for Generative AI Patents
Generative artificial intelligence (AI) tools like OpenAI's ChatGPT can be used to summarize and interpret research findings for effective communication. However, there is a concern about the credibility of AI-generated content and its impact on trust. In a recent experiment, readers from ten countries evaluated research blog posts written by humans and by ChatGPT. The findings reveal that transparency about AI authorship is crucial for maintaining trust. Participants rated AI-written posts lower in quality when the authorship was not disclosed, but this negative perception disappeared when they were informed beforehand. The study highlights the importance of transparency in using AI for research communication and recommends clear and consistent disclosure practices to mitigate trust issues. Additionally, leveraging AI for accessibility and complementing it with human oversight can enhance research communication without compromising trust.
Trust the messenger? The role of AI transparency in policy research communication
Rising protectionism and economic nationalism were the biggest stories in Southeast Asia in 2024. Countries like Thailand and Indonesia implemented policies to boost domestic manufacturing through subsidies and trade tools, such as tariffs and bans, to protect domestic industries. The United States and China also pursued their own industrial policies. The rationale behind these measures is to prioritize local businesses and consumers and protect them from surplus foreign production. This trend towards economic nationalism has been ongoing in the region for several years and is a response to a larger global trend. It is no longer possible to ignore this reality, making it the biggest story of the year.
Australia, Indonesia, Malaysia, Thailand, Viet Nam | Financial services
Why Economic Nationalism Was the Biggest Story of 2024 in Southeast Asia
Artificial intelligence (AI) has a stimulating effect on economic growth in European countries, according to a study using symmetric and asymmetric cointegration models. The study found that an increase in AI is associated with a 0.217% increase in long-term economic growth. Positive shocks to the AI variable resulted in a 0.026% increase in economic growth, while negative shocks led to a 0.029% decrease. AI is believed to promote economic development by enhancing efficiency, promoting economies of scale, improving product quality, and enhancing working conditions. However, challenges such as job displacement, rising training costs, and economic inequality must be addressed by policymakers through the creation of alternative employment opportunities, development of AI-driven industries, and implementation of worker rehabilitation programs.
Education, Financial services
Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach
China's top five priorities for 2025 include dealing with the rivalry and potential trade war with the US, competing in global technology development and setting standards, navigating tariffs from the EU, managing its alliance with Russia, and addressing conflicts in the Middle East that may affect its access to resources.
Five things at the top of China’s agenda for 2025
Former US President Jimmy Carter, who died at the age of 100, left a lasting legacy in foreign policy. His belief in human rights shaped his approach to global affairs, as exemplified by the 1978 Camp David accords between Egypt and Israel. Carter's pursuit of peace and dedication to diplomacy led to him being awarded the Nobel Peace Prize in 2002. After leaving office, Carter continued to engage in issues such as promoting democracy, supporting scientific research, and mediating conflicts. He played a significant role in resolving the nuclear weapons situation with North Korea in the 1990s. Carter's activism and commitment to global causes, including eradicating diseases like Guinea-worm, earned him admiration and recognition throughout his long life.
Jimmy Carter was a president whose reputation in foreign policy only grew after he left office
Hungary's 20 years in the EU have seen mixed economic results and growing political conflict. Despite clashes between Viktor Orbán's government and the EU institutions, Hungary has shown a relatively high level of compliance with EU policies. The country's EU membership can be divided into two periods: the learning phase characterized by alignment with EU requirements, and the period after the financial crisis of 2008 when Orbán's government developed Eurosceptic rhetoric. Hungary's economy heavily relies on EU integration, but there has been no significant shift towards higher value-added activities. The effectiveness of EU funds has been low, and there has been an increase in outward labor migration. Public support for EU membership remains generally positive.
Hungary
Mixed economic results and growing political conflict – Hungary’s 20 years of EU membership
The World Bank has increased its growth forecasts for China's economy in 2024 and 2025, citing recent policy easing and export resilience. The bank predicts a GDP expansion of 4.9% in 2024 and 4.5% in 2025, up from its previous predictions made in June. The Chinese government has implemented stimulus measures to address slowing domestic demand, including trade-in programs and debt swap programs. However, the property sector continues to be a drag on economic activity. The World Bank emphasizes the need for both short-term support and long-term structural reforms to achieve sustained recovery.
Financial services
World Bank Lifts China GDP Growth Forecast for 2024, 2025
By examining the intersection of economics, national politics, and global geopolitics, this article provides a baseline scenario for the global economy in 2025. It highlights significant weaknesses in Europe and China, as well as notable bright spots in the United States. The range of possible outcomes for the coming year is expected to broaden further.
Greece | Financial services
A Baseline Scenario for the Global Economy in 2025
This report provides an in-depth analysis of operational certification procedures (OCPs) in Asian free trade agreements (FTAs). It covers various FTAs including ASEAN agreements, RCEP, CPTPP, and agreements with the European Union and the United States. The report examines how different certification requirements impact trade facilitation and highlights opportunities for adopting best practices such as electronic certificates of origin and self-certification. It serves as a guide for policymakers and businesses, offering actionable reforms to enhance regional trade efficiency through streamlined OCPs.
Indonesia, Japan, Philippines, Thailand
Operational Certification Procedures of Free Trade Agreements in Asia: An In-Depth Analysis for Implementing Trade Facilitation Reforms
A recent research study challenges the notion that climate change and the Justinianic plague were responsible for the decline of the eastern Roman Empire (or Byzantine Empire). The study used large-scale datasets to show that there was no decline in the 6th century, but rather a period of population growth and increased trade in the eastern Mediterranean. The decline actually occurred in the 7th century due to Roman miscalculations and failures against their Persian opponents, which weakened the empire and allowed Islam to rise. The study also notes that while there may have been climate change in certain regions, the current climate crisis is far more significant in its potential impact.
What brought the decline of the eastern Roman Empire – and what can we learn from it?
The U.S.-Australia relationship is undergoing uncertainties as the new Trump administration prepares to take office. Experts weigh in on the potential impact on the AUKUS trilateral security partnership between the U.S., Australia, and the UK.
Australia
In Brief: The Economic and Security Complexities of the U.S.-Australia Relationship - War on the Rocks
Azerbaijan's admission to the Developing-8 Organization for Economic Cooperation (D-8) in December 2024 marks the organization's first expansion since its formation. This inclusion enhances economic cooperation among emerging economies with significant populations and markets, fostering trade partnerships, investment flows, and sustainable development. The D-8, which includes Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey, and Azerbaijan, collectively represents a considerable share of global population and economic output, offering crucial insights for global economic governance and development initiatives.
Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Hungary, Jordan, Kazakhstan, Kyrgyz Republic, Moldova, Oman, Pakistan, Russian Federation, Tajikistan, Tanzania, Türkiye, Ukraine, United Arab Emirates, Uzbekistan
Azerbaijan’s Admission to the D-8: Strengthening Economic Cooperation with Global Potential