Understanding the Global Economic Outlook: What It Means for Wisconsin and Sauk County (Jan 2025).

The World Economic Forum’s Chief Economists Outlook (January 2025) paints a complex picture of the global economy, highlighting significant trends that will shape the future. From economic fragmentation and inflationary pressures to the shift toward services trade, these global dynamics have tangible implications for Wisconsin and Sauk County. Here’s what these trends mean for our region and how we can prepare.

1. Economic Fragmentation: A Double-Edged Sword

The report underscores rising geopolitical fragmentation, driving up costs for consumers and businesses globally. With supply chains being reshored and regionalized, businesses face higher operational costs but gain opportunities for localized production.

Local Insight: Wisconsin’s manufacturing and agricultural sectors must adapt by building resilient regional supply chains. This presents an opportunity for Sauk County to position itself as a hub for regional production and logistics.

2. The Growing Importance of Services

Globally, services trade is becoming more prominent, benefiting advanced economies with strong digital infrastructure and specialized industries.

Local Insight: Sauk County’s tourism assets, including the Wisconsin Dells, provide a unique opportunity to tap into the services boom. Further investment in digital services and cultural tourism can help the region capitalize on this shift.

3. Persistent Inflation and Its Local Impact

While global inflation is expected to ease, the U.S. will likely see persistent inflation due to policy changes and supply chain adjustments. Rising costs could strain local households and government budgets.

Local Insight: Supporting affordable housing initiatives and prioritizing efficient public spending can help Sauk County mitigate inflation’s impact. Encouraging businesses to adopt cost-saving technologies could also ease local economic pressures.

4. Workforce Challenges in a Shifting Demographic Landscape

The report highlights constraints on labor mobility and the need to address aging populations in many regions.

Local Insight: Sauk County’s aging workforce emphasizes the need for fresh talent. Building partnerships with educational institutions, supporting remote work opportunities, and enhancing local amenities for young professionals can attract and retain a vibrant workforce.

5. The Call for Climate Leadership

As global collaboration on climate issues faces setbacks, local action becomes even more critical. The region’s reliance on agriculture and natural resources underscores the importance of sustainable practices.

Local Insight: Sauk County can lead by investing in renewable energy and promoting sustainable farming methods. These efforts not only protect local industries but also position the county as a model for climate resilience.

Moving Forward: Turning Challenges into Opportunities

The global economic trends outlined in the World Economic Forum’s report demand proactive strategies. By prioritizing regional supply chain resilience, expanding service-driven industries, addressing workforce needs, and embracing sustainability, Sauk County can thrive in this evolving economic landscape.

As we navigate these changes, collaboration between public and private sectors will be key. Let’s work together to ensure that Sauk County not only adapts to these trends but also becomes a leader in innovative economic development.