Latest Finance-Economy News
Trump Announces 10% Tariffs on Eight European Nations Over Greenland Dispute
US President Donald Trump threatened a 10% import tax on goods from Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland starting February 1, due to opposition to US control of Greenland, rising to 25% in June if no deal. French President Macron called the threats unacceptable.
This escalates trade tensions amid fair trade debates.
IMF Projects Global Growth Slowing to 3.1% in 2026 Amid Policy Volatility
The IMF's World Economic Outlook Update forecasts global growth at 3.2% in 2025 and 3.1% in 2026, down from 3.3% in 2024, with advanced economies at 1.5%. Inflation declines but US risks upside; downside risks include protectionism and fiscal vulnerabilities.
Policymakers urged to rebuild buffers and pursue trade diplomacy.
US National Debt at $38.5 Trillion Suffocating American Dream
Economist warns $38.5 trillion US debt hampers growth via high interest payments, suppressing productivity and opportunities. Debt-to-GDP ratio risks crisis if unbalanced, potentially forcing spending cuts or inflation.
Fiscal rules offer partial fixes but often falter long-term.
IMF's Georgieva: Global Economy Resilient to Trade Shocks
IMF MD Kristalina Georgieva states upcoming forecasts will confirm resilience to trade shocks with fairly strong growth, though risks tilt downside. October raised 2025 forecast to 3.2%; 2026 at 3.1%.
Geopolitical tensions and AI productivity gaps pose threats.
WEF Chief Economists See AI Fueling Markets but Risking Bubble Burst
Barclays economist notes AI optimism sustains investment despite tariffs; over half foresee US productivity gains soon. 72% expect AI job losses; majority predict US AI stock deflation with short global impact.
94% anticipate more bilateral trade deals.
Global Public Debt Nears GDP Parity, Forcing Tough Choices
WEF Outlook highlights unsustainable debt levels nearing economic output, likely prompting spending reckonings. Chief economists see rising defence outlays and falling environmental protection.
Adaptation via regional trade deals expected.
Canada-China Preliminary Deal on Steel, Aluminum, and EVs
Canada agrees to expand steel/aluminum quotas retroactive to Jan 1, effective March 1, 2026. Initial 49,000 EV quota at 6.1% tariff to boost manufacturing and supply chain.
Half reserved for affordable EVs under $35,000 CAD by 2030.
WEF: Cautious Brightening Global Outlook for 2026 on AI and Trade
Global outlook improves cautiously as AI, debt, and trade realign growth. Defence spending rises near-universally: 97% in advanced, 74% emerging economies.
Resilience persists despite uncertainties.
UK GDP Contracts 0.1% MoM, Matching Estimates
UK GDP fell 0.1% month-on-month and 3-month average, aligning with forecasts. This indicates ongoing economic stagnation in a key advanced economy.
Broader wholesale price data also released.
US Monthly Budget Deficit Wider at -$173B
US budget statement shows -$173B deficit, better than -$250B expected but signaling fiscal pressures. Amid rising debt concerns, this underscores spending challenges.
Export/import prices data pending.
Brazil Retail Sales Miss Forecasts Amid Slowing Growth
Brazil retail sales at 0.5% MoM and 1.1% YoY, below expectations of 0.7% and 1.5%. Car production drops 11.6% MoM.
Reflects emerging market volatility.
Indonesia Loan Growth at 7.74% YoY, Above Forecast
Indonesia's loan growth hits 7.74% year-on-year, surpassing 7.6% estimate. Indicates credit resilience in emerging Asia.
Supports broader growth outlook.