Latest Finance-Economy News
IMF Raises Global Growth Forecast to 3.3% for 2026
The IMF's January 2026 World Economic Outlook Update projects global growth at 3.3% in 2026 and 3.2% in 2027, slightly up from October 2025 forecasts, driven by technology investment and policy support offsetting trade headwinds. Inflation is expected to decline, though US inflation returns to target gradually; risks include tech reevaluation and geopolitics.
Policymakers urged to restore fiscal buffers and implement reforms.
Global Markets Rebound After Trump Retreats on Tariffs and Greenland
Financial markets surged as President Trump backed off confrontational tariff threats and Greenland disputes, easing prior tensions. This follows earlier market edginess from his statements on trade and foreign policy.
The retreat signals potential de-escalation in US-led trade disruptions.
IMF Warns of AI Investment Risks and Potential Market Correction
IMF highlights risks from unlisted AI firms' debt financing and high US equity valuations, which could amplify a tech correction's global spillovers. Despite robust earnings, future investments exceed cash flows, raising leverage concerns.
Upside potential exists if AI boosts productivity by 0.3% in global output.
Canada Forecasts 1.6% GDP Growth Driven by AI in 2026
Vanguard predicts Canada's GDP growth at 1.6% this year, fueled by AI contributions, stronger labor market, and mid-2% core inflation. Advantages include low US tariff exposure, stimulative fiscal policy like defense and housing spending, and no expected rate cuts.
AI capital expenditures beyond tech sector to support growth.
Rising Global Tensions Reshape Markets via Venezuela and Tariffs
Aberdeen Investments notes fast-rising tensions from Venezuela upheaval, US intervention in its oil reserves, and Greenland disputes sparking tariff threats. These shifts impact energy prices, trade flows, and defense spending.
US foreign policy changes affect Latin America elections and infrastructure control.
2026 a Make-or-Break Year for US Economy Amid Bond and AI Risks
FTI Consulting warns of rising risks from bond markets, AI investments, and affordability pressures, despite 2025 resilience. Precious metals like gold soared, signaling safe-haven flight amid prosperity.
Restructuring activity remains supported, but fissures from unequal policy benefits could widen.
Mastercard Forecasts Canada GDP at 1.3% Amid Trade Uncertainty
Mastercard Economics Institute anticipates 1.3% real GDP growth for Canada in 2026, down from 1.7% last year, urging shift to offensive strategy. Key uncertainty from CUSMA review affects supply chains; focus needed on AI and affordability.
Data-driven decisions to boost competitiveness and investment.
IMF Downgrades Mexico Growth to 2.6% for 2025, Recovery Ahead
IMF cut Mexico's 2025 growth to 2.6% due to tight policies curbing inflation and trade tensions, but expects recovery in 2026 with neutral fiscal stance. US shows weakness in interest-sensitive sectors carrying into 2025, with growth pickup later via reforms.
Brazil outlook also discussed in conference.
PM Carney Secures Investments at Davos for Canada's Economy
Canada's PM Mark Carney at WEF Davos pitched advantages in energy, AI, defense; met leaders with $10T market cap to attract $1T investments over five years. New partnerships with China ($7B exports) and Qatar on trade/defense; praised Trump on Gaza peace.
Focus on resilient, diversified economy.
Emerging Markets Subnationals Resilient Despite Diverging Access
S&P Global notes emerging market local governments resilient so far, with India's finances insulated by 60% domestic consumption from geopolitics. Market access diverges amid global shifts.
Outlook highlights ongoing stability in key regions.
Canada Stabilizes with Per-Capita GDP Improvement in 2026
RBC Wealth Management sees Canada stabilizing post-2025 per-capita GDP gains, outlining six themes for the economy amid global divergence. Emphasis on commodities, derivatives, and structural strengths.
Continued focus on resilience and opportunity.