Andy Burnham's new Labour government, with John Healey as Chancellor, faces significant fiscal challenges, balancing ambitious spending plans with market scrutiny. The administration draws parallels to the 1976 Labour government, aiming to roll back Thatcherism while navigating potential tax rises and bond market concerns.
Two powerful earthquakes in Venezuela on June 24 have resulted in 5,069 deaths, with over 20,000 displaced. International aid, including $346 million from the IMF and $300 million from the US, is being utilized for relief and reconstruction.
The IMF has lowered its 2026 global economic growth forecast to 3% due to the energy shock from the Iran war, which caused oil prices to surge. However, booming AI investment is partially offsetting the impact.
The IMF has raised its UK growth forecast to 1% for this year, making it the third fastest-growing G7 economy in 2026. This upgrade comes amid hopes the economic impact of the Iran conflict may be less severe than feared, with oil prices stabilizing and inflation easing.
The IMF has raised South Korea's 2026 growth forecast to 2.6%, citing strong global demand for memory chips and AI adoption, which offsets the impact of the Middle East war. This projection is the highest among advanced economies in the IMF's report.
German Chancellor Friedrich Merz stated China's currency is undervalued by 30%, far exceeding the IMF's estimate. He criticized Beijing's market flooding via subsidies and non-convertible currency, calling it unacceptable and a threat to European manufacturers.
German Chancellor Friedrich Merz stated China's currency is undervalued by 30%, significantly above the IMF's estimate. He criticized Beijing's use of high subsidies and non-convertible currency, warning of market flooding and harm to European manufacturers.
An IMF report details Nigeria's significant stablecoin adoption, noting $59 billion in crypto inflows and 60% of sub-Saharan Africa's stablecoin share. While acknowledging benefits like financial inclusion and cheaper remittances, the IMF warns of risks including "digital dollarization" and illicit finance due to inadequate monitoring.
Senegal's President Bassirou Diomaye Faye has dismissed Prime Minister Ousmane Sonko and dissolved the government, potentially delaying crucial talks with the IMF over a $1.8bn lending program amid a debt crisis.
The IMF has advised UK Chancellor Rachel Reeves to maintain spending limits, warning against caving to demands for government support. The advice, while milder than previous rebukes, urges focus on controlling welfare costs and efficiency in public services. The article questions the untouchability of pensioner benefits compared to those for younger generations and those in work.
The IMF urged Britain to continue cutting government borrowing amid concerns over a Labour leadership challenge. It praised Chancellor Rachel Reeves for balancing deficit reduction and growth spending, upgrading UK growth forecasts.
UK chancellor said to have told US treasury secretary she did not like his tone during meeting in Washington in AprilUK politics live – latest updatesMiddle East crisis – live updatesRachel Reeves had an angry exchange with her US counterpart, Scott Bessent, in Washington last month over the war in Iran, sources have said, in the latest sign of the deepening tensions between the two countries.The chancellor and the US treasury secretary argued in person during the spring meetings of the International Monetary Fund, according to people briefed on the exchange, confirming a story first reported by the Financial Times. Continue reading...
Daniel Gros, director of the Institute for European Policymaking at Bocconi University, explains why the euro failed to rival the US dollar and applies those lessons to the yuan. He identifies the dollar's 'lock-in effect'—its deep, open financial markets and network advantages—as the key barrier. Gros argues that international currency status requires open capital accounts, which means losing control over exchange rates—the same trade-off that made Germany reluctant to globalise the Deutschmark.
Daniel Gros is the director of the Institute for European Policymaking at Bocconi University. Previously, he served as an adviser to the European Parliament, collaborated with the European Commission as economic adviser to the Delors Committee, which developed plans for the euro, and worked at the International Monetary Fund. In this interview, Gros examines the structural tensions shaping EU-China economic ties, draws lessons from the euro’s experience to analyse the yuan’s...
Over 3,300 Iranians, including 383 children, have been killed since the US and Israel launched military operations. The conflict's economic toll is escalating rapidly, with US military costs exceeding $11.3bn in just six days and total US costs potentially reaching $1tn when long-term factors are included. Global impacts are severe: US households face $410 in additional costs, UK households £480 annually, and Arab economies could contract by $120-194bn after one month. The IMF warns of potential global recession, while 45 million more people could face acute food insecurity, primarily in Asia and Africa.
People's Bank of China Governor Pan Gongsheng urged the IMF to take a clear stand against protectionism and defend multilateralism at the fund's 53rd International Monetary and Financial Committee meeting in Washington. Pan warned that escalating geopolitical conflicts, including the US-Israeli war on Iran and the effective closure of the Strait of Hormuz since February 28, are dragging down global growth, exacerbating financial market volatility and threatening energy and food security, particularly for developing countries.
Guardian, Peter Mandelson'ın Washington büyükelçisi atanmadan güvenlik taramasını geçemediğini ortaya çıkardı. Keir Starmer ve kabine üyeleri haberi öğrenince şok oldu; Foreign Office yetkilileri vetting kararını görmezden gelerek atamayı yaptı.
The damage to the economy dwarfs the upsides from the various non-EU trade deals the UK has struck since 2016Rachel Reeves joined EU finance ministers for dinner in Washington last week, on the sidelines of the International Monetary Fund spring meetings – the first time a chancellor had done so since Brexit.It was the latest symbolic step in Labour’s marked shift towards prioritising closer EU relations. Continue reading...
Chancellor Rachel Reeves confirmed the UK has sufficient petrol, diesel and jet fuel supplies following IMF meetings, while announcing upcoming energy policy changes including North Sea drilling expansion and delinking gas and electricity prices. The IMF advised countries to manage energy demand amid Middle East conflict-driven price increases. UK GDP grew 0.5% in February, better than expected, though before US-Israel war with Iran began.
The IMF predicts lasting diesel and jet fuel shortages due to the Iran conflict, impacting global economy and food security. "Scarring effects" lead to growth forecast downgrade.
Finance ministers and central bank governors meet in Washington as the IMF prepares to cut growth forecasts. The US-Iran conflict has triggered a major energy shock, fueling inflation and threatening global economic stability.
Global finance talks are being forced to downplay the climate crisis due to US pressure, with countries urged not to mention climate even while addressing the oil crisis. Experts warn this is "beyond absurd" and disastrous for developing nations.
