Global Economy News
LAST UPDATE: June 19, 2025
Middle East conflict adding to uncertainty amid trade tensions, IMF chief says
IMF Managing Director Kristalina Georgieva told Euronews that Mid‑East conflict and global trade tensions may reduce world growth by 0.5 percentage point, increasing business uncertainty .
Insight
Georgieva highlights the combined risks from geopolitical strife and protectionism, stressing that weakened business confidence and disrupted trade channels pose immediate threats to global growth.
IMF FDMD Gopinath on US tariffs, China headwinds
IMF First Deputy Managing Director Gita Gopinath discussed the economic impact of U.S. tariffs and challenges facing China. She emphasized that although tariff truce developments were positive, uncertainty remains high for the global outlook.
Insight
Gopinath underlines how evolving trade policies—especially those involving the U.S. and China—continue to generate significant volatility in global economic forecasts. Even temporary tariff reductions don’t immediately stabilize growth, requiring persistent monitoring.
Zimbabwe Asks South Africa to Back G-20 Debt Overhaul
Zimbabwe has requested South Africa’s support to restructure its approximately $21 billion debt through the G20 Common Framework, aiming to engage a broad range of creditors to help resolve its debt impasse.
Insight
By enlisting South Africa—a key regional influencer—Zimbabwe aims to boost its credibility and push momentum behind its financial recovery. It signals a strategic shift toward multilateral engagement amid long-standing capital market exclusion.
OPEC Fund commits $1 bn in new financing for developing nations
The OPEC Fund for International Development announced a new $1 billion financing package targeting climate, health, and infrastructure projects in developing countries, extending its commitment to support sustainable development.
Insight
This substantial deployment demonstrates the Fund’s strategy to influence global development through large-scale, targeted funding, strengthening its role in addressing climate resilience and equitable growth in the Global South.
Trump Flexes Security Powers to Keep Global Tariff Goal Alive
The Trump administration invoked Section 232 of the Trade Expansion Act—typically used for national security—to apply broader import tariffs on global goods, circumventing traditional trade enforcement mechanisms.
Insight
This move illustrates the administration’s shift toward using security-related legal tools to advance protectionist trade objectives, potentially setting a legal precedent and complicating future U.S. trade policy dynamics.
Why the world cannot quit coal
Despite global decarbonization efforts, coal consumption continues to rise, primarily driven by energy demand in China, India, and Indonesia. Coal remains economically and socially embedded, with projected peaks rather than declines by 2027.
Insight
The FT highlights the stark reality that coal persists not due to ignorance but due to economic necessity and infrastructure lock-in. Achieving climate targets will require addressing development priorities and social stability in emerging economies.
