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Malaysia’s market opened with mixed signals as  strong global sentiment contrasts with local profit-taking , while the  IMF upgraded the country’s 2026 GDP outlook , reinforcing medium-term optimism. Wall Street Gains on Easing Geopolitical Risks US markets closed mostly higher as optimism grew that the  US-Iran conflict may be nearing an end : S&P 500   +0.8% Nasdaq Composite   +1.59% Dow Jones Industrial Average   -0.15% Technology stocks led gains, driven by continued  AI enthusiasm and corporate developments : Tesla   +7.6%  on AI chip progress Oracle   +4.2%  on energy deal Lower geopolitical risks are expected to  ease oil prices and inflation pressures , supporting equities. KLCI Slips on Profit-Taking in Heavyweights The  FTSE Bursa Malaysia KLCI  edged  0.28% lower to 1,683.42 , as gains were capped by  profit-taking in financial and utility stocks . Top gainer:  Axiata Group   +3.72% ...

Germany’s business outlook weakened unexpectedly at the start of the year, highlighting how  Europe’s largest economy is still struggling to gain momentum , despite growing expectations of higher government spending later in 2026. What Happened An expectations index by the  Ifo Institute  fell to  89.5 in January , down from 89.7 in December. This came as a surprise, with economists surveyed by Bloomberg expecting an improvement to 90.3. While  current conditions edged slightly higher , forward-looking sentiment deteriorated — a sign that businesses remain cautious about the near-term outlook. According to Ifo president Clemens Fuest,  Germany is entering the new year with little economic momentum , with optimism improving in manufacturing but weakening in the services sector. Why Growth Still Looks Subdued Germany returned to growth in 2025 for the first time in three years, but the pace was modest at  0.2% , underscoring how fragile the recovery rema...

The  International Monetary Fund (IMF)  raised its growth forecast for the  Asia-Pacific region  but cautioned that escalating  U.S.–China trade tensions  could derail momentum in one of the world’s most interconnected regions. Asia’s Resilient Growth Amid Tariff Headwinds According to  Krishna Srinivasan , Director of the IMF’s Asia and Pacific Department, Asia’s economy is expected to  grow 4.5% in 2025 , slightly down from 4.6% in 2024 but  0.6 percentage point higher than the IMF’s April estimate . Growth is projected to moderate to  4.1% in 2026 . “The region is once again set to contribute about 60% of global growth, both this year and in 2026,” Srinivasan said. Despite facing U.S. tariffs, Asia’s economic activity has remained  stronger than expected , driven by  front-loaded exports ,  intra-regional trade , and a  technology boom  led by  artificial intelligence (AI)  demand in  South Kore...

The International Monetary Fund (IMF) has upgraded Malaysia’s economic outlook, projecting  4.5% GDP growth in 2025 , up 0.4 percentage points from its April estimate. For 2026, growth is now forecast at  4.0% , an increase of 0.2 percentage points, according to its latest World Economic Outlook report. Bank Negara Malaysia recently revised its 2025 forecast to  4.0%–4.8% , citing global economic uncertainties and potential tariff impacts. The central bank noted that Malaysia’s growth trajectory remains highly dependent on external conditions. Globally, the IMF now expects  3.0% growth in 2025  and  3.1% in 2026 , supported by better financial conditions, front-loaded demand ahead of tariffs, and fiscal expansion in major economies. While the IMF anticipates global inflation to decline, it warned that  U.S. inflation is likely to stay above target . It also highlighted ongoing risks from tariffs, geopolitical tensions, and uncertainty, stressing that r...

Key Takeaway: The IMF cautions that "tit-for-tat" tariffs could disrupt Asia’s economic growth , raise costs, and destabilize global supply chains , despite the region’s role as a global growth engine. Speaking at a forum in Cebu, IMF Asia-Pacific Director Krishna Srinivasan highlighted the risks of escalating trade tensions, including US President-elect Donald Trump's proposed 60% tariff on Chinese goods and 10% levies on other imports . These measures could harm global trade, inflate costs, and dampen growth prospects for Asia’s export-driven economies. Major Concerns Disrupted Supply Chains: Retaliatory tariffs could lead to longer and less efficient supply chains , hampering regional trade and productivity. Global Economic Impact: Higher tariffs may result in increased inflation in the US , potentially forcing the Federal Reserve to tighten monetary policy in an already weak global economic environment. Escalating Trade Tensions: The European Union’s recent deci...

Egypt is conducting a comprehensive survey to evaluate the impact of its sweeping economic reforms on its population, working closely with the International Monetary Fund (IMF) to ensure the most vulnerable are protected, according to the IMF’s regional head. The $8 billion IMF loan program , implemented to stabilize Egypt's economy amid a foreign-exchange crisis, has triggered significant changes, including currency devaluations and sharp price increases in fuel, bread, and electricity. These measures have placed additional pressure on the Egyptian population of over 106 million , many of whom are struggling with the economic fallout. During IMF Chief Kristalina Georgieva's upcoming visit to Cairo in early November, discussions will focus on Egypt’s social protection programs , aimed at mitigating the effects of these reforms. The new survey will likely reveal the impact of two years of economic strain caused by devaluations and price hikes on household spending, provid...

The International Monetary Fund (IMF) has reduced its global growth forecast for 2025, citing increasing risks from geopolitical tensions and trade protectionism . Global output is now expected to expand by 3.2% , which is 0.1 percentage point lower than the IMF's previous estimate in July. Meanwhile, in North America, the Bank of Canada took bold action, cutting its benchmark interest rate by 50 basis points to 3.75%, the largest cut since March 2020, signaling the end of the post-pandemic era of high inflation. The move aims to boost growth as inflation expectations trend closer to the target of 2% . In China , banks also lowered lending rates following easing measures by the central bank, part of an effort to revive economic growth and mitigate the ongoing housing market slump . However, South Korea's economy saw minimal growth last quarter, highlighting the challenges posed by weakening exports and rising geopolitical tensions. Key risks also loom globally, includin...

The International Monetary Fund (IMF) expects a significant shift in global economic growth, with the BRICS nations — China , India , Russia , and Brazil — playing a larger role in driving expansion over the next five years. This forecast, based on purchasing power parity (PPP) , highlights the growing reliance on emerging markets over wealthier G7 countries, such as the US , Germany , and Japan . According to the IMF’s latest outlook, China will contribute 22% of global growth through 2029, surpassing the combined total of all G7 nations. India is set to add nearly 15% , further solidifying its role as a global growth engine. The report also shows emerging economies like Egypt and Vietnam will contribute similar growth shares to advanced economies like Germany , Japan , France , and the UK . In contrast, Canada and Italy , the smallest G7 economies, are expected to contribute less than 1% each, lagging behind populous nations like Bangladesh and the Philippines . This pr...

Bank of Japan (BOJ) Governor Kazuo Ueda said on Wednesday that it is "still taking time" to sustainably reach the central bank's 2% inflation target , signaling a cautious approach to raising Japan’s near-zero interest rates . Speaking at a panel during the International Monetary Fund (IMF) meeting, Ueda acknowledged the potential risks of moving too slowly in adjusting rates, which could lead to a yen depreciation and higher import costs. However, he stressed that moving too fast could also result in speculative activity that could destabilize markets. "When there's huge uncertainty, you usually want to proceed cautiously and gradually," Ueda said. But he added, "If you proceed very, very gradually and create expectations that rates will stay low for too long, you could see a build-up of speculative positions ." The BOJ has already begun to move away from negative rates, raising short-term rates to 0.25% in July , citing Japan's progress to...

The International Monetary Fund (IMF) has significantly upgraded its UK growth forecast , predicting the economy will expand by 1.1% in 2024, up from its earlier projection of 0.7% . This makes the UK the second-fastest growing economy in the Group of Seven (G-7) , behind the US. Growth for 2025 is projected to rise to 1.5% , placing the UK as the third-fastest growing economy after the US and Canada. The improved outlook reflects easing inflation and interest rates, which are expected to stimulate domestic demand. However, the IMF also urged the UK government to carefully manage its rising national debt , which is forecast to increase from 92.4% of GDP in 2025 to 96.4% in 2029 . The IMF emphasized the need for the UK to stabilize debt dynamics and rebuild fiscal buffers , cautioning that unsustainable debt trajectories could lead to market backlash. This poses a challenge for Rachel Reeves , the new Chancellor of the Exchequer , as she prepares to unveil her first budget. The Labo...

Zambia is exploring a debt-for-nature swap as part of its strategy to reduce overseas debt, according to Finance Minister Situmbeko Musokotwane . This option, which allows a portion of a country’s debt to be refinanced in exchange for commitments to environmentally sustainable projects , is under consideration following Zambia’s successful restructuring of $3 billion in eurobonds to exit default. Musokotwane stated that the country is "thinking about it very closely" and is working on a framework to guide how funds can be used to protect the environment. The minister highlighted the benefits of further debt relief through this approach, though no formal plan has been finalized yet. The consideration comes as Zambia faces challenges from a record drought , which has led to the International Monetary Fund (IMF) reducing the country’s economic growth outlook to 1.2% for 2024, down from an earlier projection of 2.3% . Musokotwane also confirmed that Zambia is in talks with...

The 26 poorest countries in the world, which are home to 40% of the most poverty-stricken people , are now in more debt than at any time since 2006, and are increasingly vulnerable to natural disasters and other economic shocks, according to a new World Bank report released on Sunday. The report highlights that these economies are poorer today than they were before the Covid-19 pandemic , even as the rest of the world has largely recovered. This represents a significant setback in global efforts to eradicate extreme poverty . The study, released ahead of the World Bank and International Monetary Fund (IMF) annual meetings in Washington, emphasizes the World Bank’s efforts to raise US$100 billion to replenish the International Development Association (IDA) , which provides financing to the world’s poorest countries. The 26 nations in the study, with annual per-capita incomes below US$1,145 , rely heavily on IDA grants and low-interest loans as access to market financing has dim...

The International Monetary Fund (IMF) has expressed its readiness to work with Sri Lanka's newly elected leftist president, Anura Kumara Dissanayake , on the next steps of the country’s $3 billion bailout package . In a statement following Dissanayake’s inauguration, the IMF emphasized its commitment to collaborating with the new administration to ensure the continuation of the economic recovery efforts initiated during one of Sri Lanka’s worst economic crises in 2022. The IMF noted that it will engage in discussions on the timing of the third review of the loan program with the president’s team "as soon as practicable." The organization underscored that the bailout had been crucial in stabilizing Sri Lanka’s economy, which faced severe inflation and widespread protests just two years ago. During his campaign, President Dissanayake pledged to renegotiate aspects of the IMF loan program , which had included unpopular tax hikes and spending cuts that contributed to the...

Jordan's King Abdullah has appointed Jafar Hassan , a key palace aide and US-educated technocrat, as the new prime minister following the resignation of the government on Sunday, according to a statement from the royal court. This decision comes shortly after a parliamentary election in which the Islamist opposition gained ground in the US-allied kingdom. Jafar Hassan, currently head of King Abdullah's office and a former planning minister, succeeds Bisher Khasawneh , a veteran diplomat and former palace adviser who has served as prime minister for nearly four years. Khasawneh will remain in a caretaker role until a new cabinet is formed. Harvard-educated Jafar Hassan is widely regarded as a capable technocrat and will face the challenge of mitigating the economic impact of the Gaza war on Jordan, which has already been hit by reduced investment and a sharp decline in tourism. In his appointment letter, King Abdullah emphasized the importance of strengthening democracy in Jor...

Asia is "the world's most dynamic region" but structural reforms are key given its increasing importance to the global economy, International Monetary Fund chief Christine Lagarde said in New Delhi on Saturday. IMF chief Christine Lagarde spoke in New Delhi on Saturday Asia already accounts for 40 percent of the world economy and stands to deliver nearly two-thirds of global growth over the next four years, Lagarde, the IMF managing director, told the Advancing Asia conference in the Indian capital. "Given this vital economic role, making the most of Asia's dynamism is of great interest to the entire world," Lagarde, on stage with Indian Prime Minister Narendra Modi, said. "Increased interconnectedness means that Asia now affects the world more than ever before," she said. "By the same token, Asia is now more deeply affected by global economic developments than ever before -- and must respond to them." With the global economy f...