Global Economy News
LAST UPDATE: July 23, 2025
IMF warns tariffs aren’t the answer to global imbalances
On July 22, 2025, the IMF’s 2025 External Sector Report cautioned against tariffs to address global current account imbalances. It highlighted increased deficits and surpluses in major economies, urging domestic reforms instead. (Reuters)
Insight
The IMF’s critique underscores the risks of protectionism and emphasizes that tariffs distort trade without solving root causes. This adds a strong multilateral anchor against escalating unilateral trade measures.
Fossil fuels running out of road as clean energy catches up, says UN chief
UN Secretary‑General António Guterres said fossil fuels are “running out of road” as clean energy becomes dominant. In 2024, renewables comprised 92.5% of new capacity. Investments reached $2 trillion, outpacing fossil fuels by $800 billion. He urged tech firms to fully shift to renewables.
Insight
Guterres’ assessment signals a pivotal shift: clean energy is no longer emerging—it’s mainstream. The challenge lies in mitigating remaining fossil fuel subsidies and accelerating the transition within tech infrastructure.
AI Should Run on 100% Renewable Energy by 2030, UN Chief Says
Guterres urged major tech companies to power AI data centers with 100% renewable energy by 2030, citing the rising energy demands of artificial intelligence.
Insight
This call links the AI boom directly to clean energy policy, highlighting a strategic nexus: ensuring AI’s sustainability will require tight integration of climate and tech regulation frameworks.
Banks Aiming For Net Zero Finally Have a Road Map on How to Get There
The Science Based Targets initiative (SBTi) has released a clear roadmap for financial firms—including banks, insurers, and asset managers—to reach net-zero financed emissions by 2050, emphasizing emission reductions, portfolio alignment, deforestation monitoring, and stopping fossil fuel funding.
Insight
The roadmap offers actionable guidance in an industry marked by reluctance and recent high-profile exits from climate pacts. Its success will depend on adoption and enforcement amid political headwinds.
WTO reverses parts of previous decision in EU-China intellectual property dispute
On July 21, 2025, WTO arbitrators overturned portions of a 2022 ruling that had dismissed the EU’s claims against China regarding IP rights for 3G/4G/5G patents. The panel found Chinese anti-suit injunctions violated WTO TRIPS rules and mandated corrections within 90 days.
Insight
The decision reasserts WTO authority over cross-border IP enforcement and could deepen tensions over tech standards. It underscores the importance of impartial international arbitration in resolving major IP conflicts.
Trump pulls US out of UN cultural agency UNESCO for second time
On July 22, 2025, President Trump announced the U.S. will withdraw from UNESCO, labeling it “woke” and divisive. The exit, effective end‑2026, echoes prior withdrawals under Reagan and Trump. U.S. funding constitutes ~8% of UNESCO’s budget.
Insight
The move highlights an ongoing U.S. retreat from multilateral cultural and educational engagement. Budget cuts may weaken UNESCO’s global influence and open diplomatic space for rivals.
