Global economy

The return of fiscal dominance

As public debt rises and trade fades as a growth engine, central banks risk losing the independence that underpins global financial stability

The IMF says that AI represents significant upside for the global economy if its investment surge leads to rapid adoption and productivity gains are realised.

IMF sees steady global growth in 2026 as AI boom offsets trade headwinds

It forecast global GDP growth at 3.3% in 2026, up 0.2 percentage point from its last estimate in October

The choice of the next Fed chair should be guided by the objectives set by Congress, not by President Trump’s political interests and personal whims.

The last days of Fed independence?

If Trump appoints a pliant Federal Reserve chair and monetary policy is loosened, it could stoke inflation and hurt global economic stability

Trump has become the proverbial fox in the henhouse at WEF with his “America First” mantra.
THE BOTTOM LINE

Tariffs, geopolitical tension and a US$800 billion deal: World Economic Forum 2026

Businesses batten down at Davos as global policy uncertainty reaches two-decade high

China's massive surplus in manufactured goods, now exceeds 12 per cent of the country’s own huge economy.

In 2026, trade drama will shift from Washington to Beijing

The real uncertainty lies in the rising resistance to China’s manufactured surplus

The 2026 GDP forecast is up two-tenths of a percentage point from the last predictions released in June, while 2025 growth will exceed the prior forecast by four-tenths of a percentage point.

World Bank sees resilient global growth in 2026 despite tariffs

Global output growth will slow slightly to 2.6% this year from 2.7% in 2025

Although US-China bilateral trade dropped sharply by 33%, Chinese EV exports to Asean surged 75%.
NEW GLOBAL ORDER

The tariff war that wasn’t: What economists missed about Trump’s trade gambit

Reality proves more complex with non-traditional factors at play, including structural shifts

Tariffs alone have added 0.7 percentage point to inflation, making the typical US household US$600 poorer.

Don’t be fooled – everything has changed for the global economy: Gita Gopinath

Damage caused by US tariffs has so far been muted but that won’t last

Casting an eye across the outlooks of the major investment banks and big asset managers, one would be hard-pressed to find a naysayer.

Why the melt-up is still on

As 2026 begins, optimists are talking down bubble anxiety

High on the White House’s list of 2025 accomplishments are trade deals with several major economies, ranging from investment pledges to better market access for US exports.

Why 2026 is poised to be another rocky year for global trade

The US, Canada and Mexico are about to start reviewing the North American free-trade deal that took effect in 2020