IFC Economic Report 2025

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Editor's Note:

As we enter 2025, the global financial landscape is anticipating profound transformation, with international tax policy and the movement of wealth across borders at the forefront. 2024 has redefined the international tax framework: our lead feature scrutinises the UN’s expanding role in global tax cooperation following the recent vote on a UN tax convention. Meanwhile, our Global Tax feature sees critical analysis and comment on the future of tax governance from international organisations such as the OECD, whilst industry practitioners like Dan Mitchell argue that the OECD has shifted its focus from fostering tax cooperation to undermining tax competition. We also examine the increasingly urgent debate surrounding wealth tax and distribution, and hear from CEO of the Bahamas Financial Services Board, Niekia Horton, on how tax policy is integral to a nation’s right to development.

Our financial crime feature offers essential insights for IFCs to combat and defend against tax evasion, money laundering and sanctions evasion through their characteristic combination of steadfast compliance and resourceful innovation.

On the geopolitical front, our experts provide a timely examination of 2024’s unforeseen election results, regional conflicts and climate disasters which have continued into 2025, with predictions for the resulting political realignments and implications for IFCs. Amid these escalating challenges, the resilience and adaptability of international finance centres is more crucial than ever. Speaking to this, we have BVI Finance CEO Elise Donovan’s analysis of ‘new economic nationalism’, whilst Rupert Pleasant from Guernsey Finance highlights the indispensable role of IFCs in the global economy.

As the balance of wealth and power is renegotiated worldwide, this issue identifies the challenges and opportunities that lie ahead for professionals shaping the future of international finance.

Abbie Cochrane
Assistant Commissioning Editor