Page 2 - Global Economy

Trump aide blames China for 'damaging global economy' after rare earth curb

Bessent argued that China's restrictions on critical minerals reflect internal economic challenges and a desire to drag the rest of the world along with it

Private sector sees scope in India as govt maintains capex push: Sitharaman

Finance Minister Nirmala Sitharaman on Friday said India's capacity to absorb external shocks is strong at a time when the world economy is undergoing a structural transformation. She said the task before nations is not only to manage uncertainty but to confront trade, financial and energy imbalances. "Geopolitical conflicts are intensifying. Sanctions, tariffs, and decoupling strategies are reshaping global supply chains... For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving. "Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty," Sitharaman said at Kautilya Economic Conclave 2025 here. Addressing the session on 'Seeking Prosperity in Turbulent Times', Sitharaman said wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. "Alliances that once appeared solid are being tested, and new .

Correcting populist policies is essential for India's growth

Populists, whether from the left or the right, have a greater penchant for autarchic policies that restrict trade and view the world through a mercantilist zero-sum perspective

Global economy to weaken in 2026; headwinds for India from US tariffs: WEF

Global economy is entering a period of weak growth and systemic disruption, the World Economic Forum said in its latest Chief Economists' Outlook on Tuesday. Noting that India has emerged as the fastest-growing major economy and is projected to grow by 6.5 per cent in 2025 by IMF, the report said the country's manufacturing ambitions face headwinds from newly announced US tariffs of 50 per cent on exports, a development that weighs heavily on the regional outlook for entire South Asia. According to the survey, 72 per cent of chief economists expect global economy to weaken in 2026 amid intensifying trade disruption, rising policy uncertainty and accelerating technological change. The findings pointed to the emergence of a new economic environment shaped by persistent disruption and growing fragmentation. Emerging markets are anticipated to be the main engines of growth, with the Middle East and North Africa (MENA), South Asia and East Asia and Pacific seen as bright spots. One in

World economy yet to feel full impact of Trump's tariffs, warns OECD

The full impact from an overall effective tariff rate imposed by the White House of 19.5 per cent - the highest since 1933 - has yet to be felt, officials said

Climate-driven health risks could cost global economy $1.5 trn by 2050: WEF

Climate-related health risks can cost the global economy at least USD 1.5 trillion (over Rs 131 lakh crore) in lost productivity in the next 25 years due to rising illness and labour shortages across key sectors, a new study showed on Thursday. The World Economic Forum report, developed in collaboration with Boston Consulting Group, assessed climate-driven health impacts in four of the most affected economic sectors: food and agriculture; the built environment; health and healthcare; and insurance. The USD 1.5 trillion estimate reflects losses in only the first three sectors, under a mid-range scenario, suggesting the burden on the global economy could be far higher, it said. The study encourages companies to act now to protect workforce health, build operational resilience and safeguard productivity before the costs of climate adaptation become unmanageable. The findings highlighted that adapting to extreme heat, infectious diseases and other health risks accelerating due to clima

Global 36-hour interest-rate spree heralds first US reduction of 2025

Starting with the Bank of Canada and then the Federal Reserve on Wednesday, shifting to the Bank of England the following day, and ending with the Bank of Japan

World Bank plans securitisation, debt swaps to boost development

"We can't do project by project," Banga said of the securitisation plans. "We don't have 100 years."

Trump gets economy he wants, but growth risks may spoil his victory lap

President Donald Trump is getting his way with the world economy. Trading partners from the European Union to Japan to Vietnam appear to be acceding to the president's demands to accept higher costs in the form of high tariffs for the privilege of selling their wares to the United States. For Trump, the agreements driven by a mix of threats and cajoling, are a fulfillment of a decades-long belief in protectionism and a massive gamble that it will pay off politically and economically with American consumers. On Sunday, the United States and the 27-member state European Union announced that they had reached a trade framework agreement: The EU agreed to accept 15 per cent US tariffs on most its goods, easing fears of a catastrophic trans-Atlantic trade war. There were also commitments by the EU to buy USD 750 billion in US energy products and make USD 600 billion in new investments through 2028, according to the White House. We just signed a very big trade deal, the biggest of them .

A World in Flux: Sitharaman flags need to reshape institutions for present

At the launch of 'A World in Flux', Finance Minister Nirmala Sitharaman said multilateral institutions are now in limbo and stressed the urgent need to reshape them for today's rapidly evolving world

Donald Trump's tariff chaos leaves global trade partners in uncertainty

Gone is the idea that the White House would strike 90 deals in 90 days after a period of rapid-fire negotiation, as Trump pledged in April

Viksit Bharat by 2047 goal: Are we on track for tech advancement?

Public support for innovation must shift towards radical improvements in higher education and financial support for startups and new innovators

Datanomics: Despite gains, Brics still lags behind G7 in per capita terms

Average Brics per capita income stood at $2,087 in 2000, which is projected to rise to $9,437 by 2025. In contrast, G7's average may rise from $27,855 to $53,623

OPEC sees solid second-half of 2025 for world economy, trims 2026 supply

OPEC also said supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast

Trump tariffs to shrink US economic growth to 1.6%, global to 2.9%: OECD

The OECD notes that Trump's policies have raised average US tariff rates from around 2.5 per cent when he returned to the White House to 15.4 per cent, highest since 1938

Stanley Fischer, who shaped global macroeconomic policy, dies at 81

Fischer, known as Stan, served as vice chairman of the US Federal Reserve from 2014 to 2017 following eight years as governor of the Bank of Israel

Economists see global growth coming under strain; India story intact: WEF

Chief economists from across the world are the most optimistic about a strong economic expansion in South Asia, with India looking set to be the primary engine of growth in 2025 and 2026, a new survey showed on Wednesday. The chief economists, however, warned of the overall global growth coming under strain from trade policy shocks and AI disruption, the World Economic Forum (WEF) said in its latest 'Chief Economists Outlook' report. A majority of surveyed economists saw the current US economic policy as having a lasting global impact, with 87 per cent expecting it to delay strategic business decisions and heighten recession risks. The global growth outlook was divided, with weak prospects in North America, resilience in Asia-Pacific and cautious optimism in Europe. "The outlook for China remains muted, and the chief economists were divided over whether it will reach its target of 5 per cent GDP growth this year. "Optimism remains highest for South Asia, where 33 per cent expect .

Outlook for India is one of cautious optimism, says the RBI report

The prospects of bumper rabi harvest and the outlook of an above normal monsoon would further strengthen rural consumption and is also likely to keep food inflation in check

WEF courts Christine Lagarde as next leader after founder's abrupt exit

As the board deals with the fallout, it still sees Lagarde as the top candidate and has held internal discussions on the matter since Schwab's resignation last month

Empty Vessel: The story of globalisation told through one big barge

This elegant and enlightening book is an impressive feat, given that its main character is, as Kumekawa admits, stubbornly uncharismatic: "a dumb pontoon without voice, personality or drive"