Latest Finance-Economy News
IMF Projects Global Growth Slowing to 3.1% in 2026
The IMF's World Economic Outlook Update forecasts global growth declining from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, with advanced economies at 1.5% and emerging markets above 4%. Inflation continues to decline globally but remains above target in the US with upside risks.
Risks include protectionism, fiscal vulnerabilities, and labor shocks, urging credible policies and trade diplomacy.
PwC Forecasts Global GDP Growth at 2.7% for 2026
PwC predicts global GDP growth of 2.7% in 2026, matching 2025 levels, driven by AI investments and resilient US consumer spending at 2.1% growth. Emerging markets like India expected at 6.7% growth via high-tech exports and consumption.
Inflation uneven with rising electricity and medical costs contributing to stickier core inflation.
WEF Economists Anticipate Weaker 2026 Conditions
World Economic Forum chief economists foresee weakening global economy due to mounting debt, geopolitics, and trade realignments. Surging AI investments expected to boost productivity fastest in IT, finance, and healthcare sectors within 1-2 years, especially in US and China.
More bilateral trade deals and regional agreements anticipated amid stable US-China tariffs but rising tech restrictions.
Wall Street Stocks Waver Near Records
US stocks fluctuated but stayed near records, with PNC up 3.8% on strong earnings while Regions Financial fell 2.6%. Treasury yields rose, 10-year at 4.22%, amid Fed's rate hold expectations and persistent inflation above 2% target.
Upcoming earnings from airlines, industrials, and tech like United, 3M, Intel; PCE inflation data next week.
US-Taiwan Trade Deal Sparks China Protest
Taiwan's benchmark rose 1.9% after US trade deal signing, protested by China amid ongoing US trade wars. Canada cuts 100% tariff on Chinese EVs for lower tariffs on farm products, shifting partnerships.
Tesla up 0.3%, Rivian down 2.1% on EV trade shifts.
Scotiabank Warns of Rising Cost Pressures in Canada
Canada faces inflation from depreciating C$, rising producer prices, excess wage growth over productivity, and high inventory buffers amid supply chain frictions. Monetary policy shifting to fiscal; upcoming PMIs, US macro data, Canadian retail sales, UK/Australia jobs.
Little economic slack to absorb price pressures.
President's 10% Credit Card Rate Cap Faces Opposition
US President's proposal for yearlong 10% cap on credit card rates draws lawmaker opposition. Comes amid concerns over consumer debt in resilient spending environment.
Controllers Council Sees US Growth Near 2% Potential
2026 US economy likely to grow about 2% at long-term potential, with upside to 3% or downside to 1% based on policies. Driven by strong consumer spending, wage growth above inflation, and AI/business investment.
Canada-China Agree to Expand 6 Economic Areas
Canada and China commit to enhancing cooperation in 6 economic areas including tourism, with memorandums on tourism board collaboration. One major holdout area remains unspecified.
Builds on tariff adjustments for farm products and EVs.
AI and Energy Demand Shape 2026 Investment Outlook
Genus Capital highlights AI selectivity, surging energy demand from data centers as key 2026 market trends and risks. PwC notes US electricity prices up 4.2%, medical costs 8.5% adding to inflation pressures.
IMF urges structural reforms alongside industrial policy considerations.
Upcoming Key Data: PMIs, Inflation, Jobs Globally
Global PMIs from Australia, Japan, Eurozone, UK, US, India this week; US spending/incomes, PCE inflation ahead of Fed meeting. UK CPI/producer prices, retail; Australia December jobs expected to rebound.
Signals on growth above 50 and inflation trends.
RBC Flags Top Risks for Canada Amid US Strength
Canada faces 2026 risks despite strong US economy and tax breaks attracting investors. ATB forecasts Canadian food prices up 4-6%, outpacing 2% overall inflation.
BMO international outlook shows varied CPI forecasts across regions.