Global Economy News
LAST UPDATE: June 17, 2025
Investment Flows in 2023 Into Developing Countries at Lowest Since 2005, World Bank says
In 2023, FDI into developing economies fell to $435 billion (2.3% of GDP)—the lowest since 2005—due to rising trade barriers, fragmentation, and heightened geopolitical risks. The decline threatens infrastructure, poverty reduction, and climate efforts.
Insight
The sharp drop in FDI signals a turning point for developing nations that have relied on foreign investment as a growth engine. To reverse this, structural reforms, improved ecosystems, and global coordination will be essential.
OPEC expects solid second-half of 2025 for world economy, trims 2026 supply
OPEC’s June report sees the global economy remaining robust through H2 2025 despite geopolitical turmoil and trade tensions. It maintains demand forecasts and forecasts non‑OPEC+ supply to grow by 730 k bpd in 2026—70 k bpd lower than earlier projections.
Insight
By tightening its non‑OPEC+ supply outlook and reaffirming demand strength, OPEC aims to support oil prices near $80/barrel and reinforce market balance. It reflects OPEC+’s increasing role in managing global energy stability.
G‑7 Works to Secure Critical Minerals in Face of China Curbs
Reuters
G7 leaders agreed in a draft to coordinate strategies to secure critical mineral supplies, counter China’s export curbs, and diversify mining, processing, and recycling through transparent, resilient supply chains.
Insight
This move reflects G7’s growing concern over Chinese control of minerals essential to tech and defense, marking a strategic shift toward securing global resilience and less dependence on non‑market actors.
G7 leaders to pressure Trump on trade war threats
G7 leaders are urging President Trump to tone down trade tensions and reconsider his steel and aluminum tariffs, warning that aggressive trade actions pose a significant risk to global economic stability.
Insight
The collective push highlights deep concern among allies about U.S. protectionism destabilizing longstanding economic cooperation and signaling the fragile state of multilateral trade relations.
G7 leaders struggle for unity as Trump says removing Russia from group was a mistake
President Trump criticized the 2014 decision to exclude Russia from the G8, arguing that keeping Russia in might have prevented wars. This remark stirred tension, underscoring divisions among G7 leaders.
Insight
Trump’s remarks expose a rift between his pro-Russia leanings and the core G7 consensus, complicating diplomatic cohesion on issues like Ukraine and challenging the group’s credibility.
Trump does not intend to sign G7 statement on Israel‑Iran, CBS reports
U.S. officials told CBS News that President Trump plans to refrain from signing the G7’s draft statement calling for a de-escalation of the Israel–Iran conflict, despite wider consensus among other leaders.
Insight
Trump’s refusal signals a reluctance to back collective diplomatic stances, further isolating the U.S. at a critical juncture and complicating allied coordination in Middle East diplomacy.
Trump on Trade With Canada: ‘We’re Going to See If We Can Get to the Bottom of It’
At the G7, President Trump stated he and Canadian PM Mark Carney will try to resolve complex trade issues—including tariffs on steel, aluminum, and autos—within the next month.
Insight
This signals that, despite strains, Washington and Ottawa are exploring diplomatic-room for compromise—hinting at a possible shift toward recalibration rather than confrontation.
UN refugee agency says will shed 3,500 jobs due to funding cuts
AFP
UNHCR announced it will cut approximately 3,500 staff, nearly 30% of its workforce, citing a major funding shortfall. The reduction will affect aid programs in education, health, financial support, and sanitation.
Insight
These cuts threaten the agency’s capacity to respond to global refugee needs, potentially worsening crises amid ongoing conflicts. It underscores the fragility of humanitarian funding and may push affected nations to seek alternative aid mechanisms.
