Economics Perspective

The International Monetary Fund warned in a pointed new policy paper that tariffs and industrial subsidies are largely ineffective and damaging to economic welfare, as global trade progress since the 2008 financial crisis has reversed. The IMF says rebalancing requires coordinating domestic macroeconomic reform, not trade barriers, with widening imbalances driven by persistently large deficits in national saving in the United States and China’s ongoing real estate slowdown.

Global Findex 2025 data shows women's financial account ownership in low- and middle-income countries rose to 73% in 2024, up from 66% in 2021. Digital payment usage grew from 50% to 58% and formal savings from 22% to 36%, yet over 700 million women remain unbanked. High fees, distance, and limited access to credit continue to hinder full financial inclusion and economic independence.

The European Parliament approved stricter regulation of foreign investments in critical sectors with 508 votes for, requiring all EU countries to screen deals in defence, AI, semiconductors, and finance services to safeguard against geopolitical risk. EU member states have for far too long tolerated the influence of external forces on key areas of the European economy.

At a Tokyo policy symposium, IMF’s Kristalina Georgieva projected 3.3% global growth for 2026 but warned of oil shocks, geopolitical risks, and demographic shifts. She urged fiscal buffers and agility, noting AI could boost Asia’s growth 0.8 points annually.

The World Bank Group has focused on five key industries in which there is great potential for creating employment opportunities: the energy and infrastructure sector, agriculture and agribusiness, health care, tourism, and manufacturing. Each of these sectors is interconnected with the other and supports the creation and development of many job opportunities and a broad-based development strategy.

In a world long dominated by the financial tides of the US dollar, a new story is unfolding, driven not by a grand, planned design but by an unexpected external force: the tariff policies of Donald Trump. Trump's renewed presidency saw him sign an executive order in early 2025, first imposing tariffs on imports from China, then escalating to a "universal" tariff on nearly all imports. But the most pointed attacks were reserved for the BRICS bloc and their partners.

Resolving fragility is not only the role of humanitarian action but also important for international security and economic equality. The country is experiencing fragility and conflicts through a multifaceted issue that hinders development and undermines social security. Prolonged hostilities, weak institutions, and state capacity constraints prevent governments from providing necessary services.