Monday, January 26, 2026 at 2:00 AM
Countries are increasing fiscal stimulus packages to counteract economic shocks, which may boost growth in the short term but poses risks due to low unemployment and high interest rates.
Japan’s long-term government bond yields surged to multi-year highs Tuesday, spurred by fears that an upcoming election could lead to a consumption-tax rate cut that might worsen the country’s public finances.
The global economy is set to grow faster than previously expected this year, though could falter if trade barriers rise again and geopolitical conflicts intensify, it said.
The eurozone economy last year expanded at its fastest pace since 2022 despite higher U.S. tariffs, and seems set for continued modest growth.
The U.S. has long been a beacon of safety when uncertainty reigns. That is changing.
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