The year 2025 began like Schrödinger’s cat, existing in a "superposition" of states that was only resolved when the American election return of Donald Trump defined the global path. This year has been a pivotal turning point where long-standing geopolitical alliances, technological gambles, and economic norms were fundamentally reset.
The Geopolitical Realignment
The "America First" agenda returned with a transactional approach that prioritised bilateral deals over traditional security guarantees.
Ukraine: The conflict moved toward a "semi-frozen" state as pressure mounted for a deal involving territorial concessions in exchange for security guarantees.
The Middle East: While some hoped for a "quick win" ceasefire in Gaza, the region remained unstable, with Israel's government moving toward de facto annexation of the West Bank.
The "Quartet of Chaos": Deepening collaboration between Russia, China, Iran, and North Korea created a "deterrence deficit" that challenged Western influence across multiple fronts.
The $1.4 Trillion AI Crunch
In technology, 2025 was the "crunch year" for artificial intelligence as investors demanded proof of value for their massive data-centre spending.
Agentic AI: The industry moved beyond simple chatbots to "agentic" systems capable of planning and executing complex multi-step tasks.
Nvidia’s "AI Factories": The rollout of the Blackwell superchip began, providing the hardware for a new generation of high-energy data centres.
Medical Breakthroughs: AI began to justify its hype in the lab, with mRNA cancer vaccines and AI-developed drugs moving into crucial late-stage clinical trials.
Energy and the Environment
This year may be remembered as the moment global emissions finally peaked, a vital milestone for the Paris Agreement.
Storage Revolution: Grid-scale energy storage became the world's fastest-growing energy technology, helping to manage the intermittent nature of wind and solar power.
Private Fusion: The SPARC reactor aimed to demonstrate that nuclear fusion could operate at a near-commercial scale, shifting the sector's momentum from public research to private enterprise.
Economic and Cultural Shifts
The global economy saw India on the verge of overtaking Japan to become the world's fourth-largest economy. Meanwhile, Japan faced its "2025 problem" as the last of its baby-boomers reached age 75, straining social safety nets. Culturally, the world celebrated the 250th anniversary of Jane Austen’s birth, proving her "height of fashion" status remains unchallenged by time or TikTok.
The Road to 2026: What Lies Ahead?
As we look toward 2026, the global landscape remains volatile and unpredictable.
A New Arms Race: The New START treaty is set to expire in February 2026, meaning that for the first time in decades, there may be no formal limits on the nuclear arsenals of the world's great powers.
Trade Intensification: The "tariffying" prospects of 60% levies on Chinese goods and universal import taxes will likely escalate, forcing more Chinese firms to move production to places like Mexico and Hungary.
The AI Verdict: 2026 will be the year we see if the massive infrastructure built in 2025 actually delivers the productivity boom that justifies its $1.4 trillion price tag.
Summary Analogy: Navigating 2025 is like trying to ride two camels at once. Leaders must balance the old world of stable alliances and traditional industry with a bucking, unpredictable new world of radical technology and protectionist politics.
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