Global Economy News
LAST UPDATE: July 21, 2025
Political and economic volatility wipes $320bn off global profits
Between 2017 and 2024, $320 billion in EBITDA was lost across nearly 3,500 large companies due to events like inflation, wars, UK gilt crisis, and political shocks. Only ~10% of 2014 profit leaders maintained positions. (フィナンシャル・タイムズ)
Insight
The data highlights how sustained geopolitical and macroeconomic instability is eroding corporate profitability. Only firms adaptable to diversified markets and agile in response are weathering the volatility.
Klaus Schwab rejects misconduct probe findings as WEF dispute deepens
WEF founder Klaus Schwab has denied allegations from an internal probe that he manipulated competitiveness reports and misused funds. He’s filed a criminal defamation complaint as investigations continue. (フィナンシャル・タイムズ)
Insight
Schwab’s legal counterattack signals deep divisions at the WEF, jeopardizing leadership succession, governance credibility, and potentially the Forum’s global influence.
China confirms EU leaders to visit Thursday for summit
China’s foreign ministry confirmed that EU leaders will visit Beijing this Thursday for a summit, marking a crucial diplomatic engagement aimed at stabilizing economic and political relations. (RFI)
Insight
The visit indicates Beijing’s intent to rebalance relations amid global uncertainty. It presents an opportunity to align on trade, technology and climate, but differences remain on sensitive issues like human rights.
US embassy in China warns exit bans risk straining bilateral relations
The U.S. Embassy in China warned that China’s use of exit bans—blocking foreign nationals from leaving, including U.S. officials and businesspeople—could damage bilateral relations. It urged transparent legal proceedings and immediate release of those affected.
Insight
The issue highlights how domestic legal tools are being used in geopolitical pressure tactics, risking foreign investment and trust, while exacerbating U.S.–China tensions on legal fairness.
Top central banker defends climate work after US pushback
Bundesbank deputy governor Sabine Mauderer defended central banks’ climate-related efforts after U.S. pressure led the Fed to exit the NGFS. She warned climate risks could reduce global GDP by 15% by mid-century.
Insight
This signifies a deepening transatlantic divide: European central bankers are emphasizing climate’s systemic financial risks and expanding central bank mandates, while the U.S. resists, preferring less intervention.
ICJ to deliver landmark climate ruling
The International Court of Justice (ICJ) will issue, on July 23, 2025, a groundbreaking advisory opinion clarifying states’ legal obligations under international law to prevent climate change and hold polluters accountable, particularly regarding impacts on vulnerable nations. (arabnews.com, pisfcc.org)
Insight
This non-binding but authoritative opinion could become a global reference point for climate litigation and policy. It is likely to influence both national regulations and corporate responsibility, empowering smaller nations and civil society to demand action and accountability.
