Global Economy News
LAST UPDATE: June 24, 2025
World facing ‘most complex’ situation in decades: WEF
Borge Brende, head of the WEF, warned on June 24 that today’s geopolitical and geo‑economic climate—the intertwined effects of trade tensions, the Iran‑Israel war, and shifting global alliances—is the most complex seen in decades, potentially suppressing global growth for years. (m.economictimes.com)
Insight
The warning signals a turning point: global growth engines like trade are faltering, with multidimensional crises (tariffs, conflict, fragmentation) requiring novel multilateral solutions or risking prolonged stagnation.
Central banks eye gold, euro and yuan as dollar dominance wanes
A Reuters/OMFIF survey shows one-third of central banks plan to increase gold reserves in the next 1–2 years; the euro is expected to rebound in the short term, while the yuan is favoured long-term amid concerns over U.S. dollar political risks.
Insight
This illustrates a strategic reshaping of reserve portfolios: diversification into gold and other major currencies reflects concerns over U.S. fiscal and geopolitical leverage, signalling a gradual shift towards a multipolar monetary system.
NATO Prepares for New Kinds of Threats – WSJ
WSJ reports NATO is evolving to address hybrid threats like cyberattacks, drones, and sabotage. Measures include a Maritime Center for undersea infrastructure, a Cyber Defense Center, and enhanced intelligence-sharing. These initiatives aim to counter emerging security risks ahead of the NATO summit.
Insight
NATO’s transition reflects recognition that modern conflicts involve not only traditional military confrontations but also subtle, high-tech disruptions. The alliance’s holistic approach to cyber and hybrid warfare is designed to deter adversaries from launching ambiguous attacks that fall below the threshold of open war.
US totally committed to NATO, Rutte says before Hague summit
NATO Secretary‑General Mark Rutte stated on June 24 that the U.S. is “totally committed” to the alliance, though he urged Europe and Canada to raise defense spending. This comes ahead of new targets to boost member defense budgets.
Insight
Rutte’s framing balances reassurance of U.S. backing with pressure on allies to shoulder more financial burden—signaling a pivot to European responsibility without undermining alliance unity amid internal political strains.
