in 2025, two research papers published just prior to the president-elect’s trade announcement against Mexico, Canada and China, identified several preexisting challenges already in place. The analysts who authored the reports also offered retailers and brands strategies to mitigate economic disruptions.
She said high construction costs make it difficult for projects to be financially viable — even in strong markets. “Rising labor and material expenses and overstretched project budgets impact profit margins,” Solanki said. “Even in markets with strong demand, these elevated costs can erode returns, making it harder for developers to justify new investments.”
Last year retail spending growth was 3.4 percent, but will likely slow to 3.2 percent this year and then drop to 3.1 percent in 2025. “This gradual slowdown reflects a stabilizing retail landscape following the post-pandemic consumer activity surge, fueled by pent-up demand and unprecedented spending levels,” Solanki said. “Despite moderating inflation, consumers are becoming more selective in their purchases.