Global Economy News
LAST UPDATE: June 12, 2025
World Bank to end ban on nuclear energy projects, still debating upstream gas
The World Bank lifted its long-standing prohibition on funding nuclear energy projects in developing countries. However, the board remains divided on whether to finance upstream natural gas.
Insight
This pivot marks a major strategic shift under President Ajay Banga’s “all-of-the-above” energy thesis—balancing climate, energy security, and equitable development, though gas funding remains contentious.
Fitch Says Global Energy Outlook Worsens on Tariff, OPEC+ Woes
Fitch Ratings downgraded its global energy-sector outlook to “deteriorating,” driven by overcapacity caused by OPEC+ supply increases and mounting trade tariffs that dampen demand.
Insight
The downgrade highlights the sector’s fragility under dual shocks: policy-driven trade barriers and supply gluts, pressuring prices, capex plans, and long-term energy transition viability.
Group of Seven Tries to Avoid Trump Conflict by Scrapping Joint Communiqué
Ahead of the G7 summit in Canada, leaders are preparing to drop a unified communiqué in favor of separate statements, due to disagreements—especially with the U.S.—on Ukraine, climate change, and trade.
Insight
The move highlights fractures within the G7 driven by US unilateralism, risking dilution of collective influence and signaling a shift toward segmented diplomacy over unified declarations.
Supply Chains Become New Battleground in the Global Trade War
The U.S.–China trade war has moved from tariffs to strategic export controls targeting critical materials like semiconductors and rare earths, with control over supply chains becoming central to negotiations.
Insight
The shift toward supply chain weaponization marks a long-term transformation in economic statecraft—highlighting the need for businesses to diversify supply sources and build resilience.
Wars now displace over 122 million people as aid funding falls, UN says
As of April 2025, over 122 million people are forcibly displaced due to war and persecution—nearly double the level of a decade ago—while aid funding has fallen to 2015 levels, increasing humanitarian strain.
Insight
The scale of displacement, combined with aid shortfalls, presents a growing global crisis that risks cascading instability, emphasizing the urgent need for renewed political commitment and funding.
