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We’re in an age of polycrisis. It’s a term that refers to multiple converging crises where the combined impact is greater than the sum of its parts. So, it’s no wonder that we can’t shake off the doom and gloom that’s been hanging around more than the mould in an over-priced Sydney rental. This is backed up by a Harvard study, which found that headlines using fear-driven words like “terror”, “crisis” and “danger” have surged by 52 per cent over the past decade.
I don’t know about you, but I could really go for some precedented times right about now. Even Dulux agrees, releasing their 2025 Colour Trends, which they think will be all about “uplifting and soothing tones in response to periods of uncertainty.”
But all of this uncertainty doesn’t have to mean chaos.
When looking towards the future, 66 per cent of Australians are optimistic about it. Not everyone is ready to tackle it head on though, with only 59 per cent of Australians feeling prepared for the future.
Either way, one thing is clear, which is that there is a lot in store for 2025. Let’s take a look, shall we?
When it comes to politics and the economy, wars will persist throughout 2025, and US President-elect Donald Trump will have a lot to say about it. We’ll continue to see the rise of non-Western alliances, like BRICS, and speaking of Trump, his tariffs will have a big impact on our local economy. How? Well, buckle in because it takes some explaining.
Trump’s tariffs are intended to drive up demand for locally-made goods in the US, which would then drive down demand for those coming in from overseas. This in and of itself won’t directly have a massive impact on Australia, but it will on China. And if it does, they will need less of things like steel, coal, and gas. When something like iron ore, which is used to make steel, accounts for over one fifth of Australia’s entire export load, you can start to see how our economy could take a sizeable knock —something that the OECD suggests could be in the realm of 1.2 per cent of our GDP, making Australia the second hardest hit economy in the world from Trump’s tariffs. This could create economic instability at a time when many business leaders were of the impression we were out the other side of it.
Australians are going to have more than just Trump to think about. Because we’re off to the polls in an election of our own. When it comes to what the pollies will be campaigning on, it is looking like the cost of living, housing affordability, energy policy and misinformation will be big ticket items. These align with the top three economic concerns of Australians, which are inflation (67 per cent), housing affordability (60 per cent), and global economic conditions (57 per cent).
One thing that is particularly interesting about this election is that it will be the first time in Australian history where Millennials and Gen-Z will make up the majority of voters, replacing Baby Boomers as the most influential political constituency. This means that both ends of the political spectrum will need to build policy platforms that appeal to the needs and values of younger voters. It also means that social media users and influencers will be more important in this election than in any we’ve seen in our lifetimes.
At the same time as politicians debate housing policy, SQM Research predicts that the national average house price will increase by somewhere between 1 and 4 per cent across 2025. Specifically, they’re backing prices in cities like Perth to grow, while Sydney and Melbourne house prices are expected to fall. We can’t talk about houses and not talk about interest rates, which are expected to stay steady until starting to drop from mid-2025.
Another economic issue that has people talking is equality and the wealth divide. And in Australia, the conversation around the wealth divide is more focussed on generational wealth. In 2025, every Baby Boomer will have the ability to access their superannuation. This has intensified concerns around how wealth is distributed in Australia, with some suggesting that Baby Boomers will continue to benefit as younger Australians struggle to save and invest.
Beyond politics and the economy, technology is set for another big year. Not everyone is jumping out of their skin though, with more than two thirds of Australians (68%) feeling overwhelmed by the pace of change, which is a contributing factor as to why 57 per cent of Australians think that technology will do more harm than good.
Either way, it’s undeniable that 2024 was a big year for AI, which has many asking what next for 2025? Well, there are three exciting advancements to look out for, being AI agents, next-gen voice assistants, and generative video.
With everyone talking about AI, it can be easy to overlook what else is happening in the technology space. And with the United Nations proclaiming 2025 as the International Year of Quantum Science and Technology, we can expect big things here. Without getting too technical, quantum computing is a super-powerful type of computer that uses the strange rules of physics to solve problems way faster than regular computers can, which could also supercharge the AI agenda.
With any new technology comes questions, concerns and challenges. One that we’ll be talking about more in 2025 will be how we go about navigating a post-truth world —a state where the lines between fact and fiction are increasingly blurred, and where people care more about what feels true to them rather than objective reasoning. With more than three quarters of Australians (78%) saying they are unsure of who and what to trust online, this will see consumers opting for brands that are authentic, transparent, and actively seek to build trust.
Younger generations in particular are placing increasing value on the trustworthiness of the brands they align with and the organisations they work for. And 2025 will be a big year for generations, with the first of Gen Alpha entering the workforce at the same time as the first of Gen Beta are born.
These younger generations are also driving something called the analogue awakening, as 64 per cent of Australians look to spend less time online in 2025. This doesn’t mean they’ll be disconnecting altogether, but it does highlight opportunities for organisations to tap into nostalgia and compelling face-to-face experiences.
As we gear up for 2025, one thing is clear: the world keeps spinning faster, and there’s no slowing down. It will be a year of contrasts: tradition versus innovation, complexity versus simplicity, division versus unity. The trick will be finding balance in the middle of it all.
To read out more about what 2025 has in store, download a copy of the 2025 Future Forecast at www.benhamer.space.
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