Latest Finance-Economy News
IMF Approves $206 Million Emergency Aid for Sri Lanka After Cyclone Ditwah
The IMF Executive Board approved US$206 million under the Rapid Financing Instrument to address urgent needs from the catastrophic cyclone that killed over 600 and displaced 100,000. This support preserves macroeconomic stability amid fiscal pressures, with the Fifth EFF review deferred to early 2026.
Sri Lanka's reform program continues, backed by fiscal overperformance.
US Fed Minutes and Key Data Previewed for Week of December 22
Upcoming US Q3 GDP updates, industrial production, consumer confidence, and FOMC minutes highlight policymaker views on rate cuts after Fed funds dropped to 3.5-3.75%. Concerns mix weak labor market and sticky inflation, with flash PMI showing low hiring and tariff price pressures.
Global PMI surveys follow in early 2026.
US Economy Grows Without Job Gains, Linked to AI Productivity
US sustains elevated growth into late 2025 despite rising unemployment, attributed to AI-driven productivity surges historically seen as transitory. Fed eases policy, dropping 10-year Treasury yield to 4.02% and supporting mortgage rates.
Labor outlook uncertain but surveys predict hiring rebound.
Texas Job Growth Slows but Optimism Persists in Key Sectors
Texas outperforms national job growth but faces narrowing gap, losses in most industries except health and government. Business surveys show rising hiring plans in manufacturing, slight dip in services and retail.
Home prices decline amid higher mortgage rates at 6.23%.
India GDP Surges 8% in FY2025-26 First Half on Consumption Boom
India's real GDP grew 8% YoY, driven by 7.5% private consumption and 7.6% capital formation, with manufacturing at 9.1%. RBI rate cuts boost credit amid falling inflation; income tax cuts aid disposable income.
Fiscal measures target household spending amid strong tertiary sector.
Global GDP Outlook Improves: 2% US Growth in 2025 Fueled by AI
Deloitte forecasts healthy 2% US real GDP growth in 2025, largely from AI-boosted business investment. India's recovery hits 4% in 2025 post-contractions; China at 0.2% hampered by US tariffs.
Consumption and construction lead rebounds in key markets.
Trump Tariffs Reshape 2025 Canadian Economy and Travel Patterns
US protectionism via tariffs disrupted 2025 trajectories, curbing Canadian-US travel, hitting steel/lumber, spurring domestic policy on investment and trade. Canadians shifted to internal travel amid economic pressures.
Canada accelerates LNG exports, first Kitimat shipments in June.
US Inflation and Labor Cool in November Amid Shutdown Distortions
November data shows cooling inflation and labor market, caution advised due to fall government shutdown impacts. Delayed employment, inflation, retail sales provide rearview clarity post-Fed Chair's 'fog' comment.
December data in January to clarify trends.
US Trade Deficit Narrows in September 2025
The US goods and services trade deficit decreased in September per BEA and Census Bureau data. This reflects ongoing trade dynamics amid global tensions.
US Unemployment Hits 4.6%, Chemical Exports Up 1.8%
Weekly trends show 4.6% unemployment rate persisting, core CPI at 2.6% YoY. Chemical exports rose 1.8%, indicating sector resilience.
CBO to Release 2026 Economic Projections Early Next Year
Congressional Budget Office plans updates on growth, employment, inflation through 2028, based on December 3 data. Projections incorporate recent laws and developments.