Politics

Fiscal Policy

Pakistan Just Posted Its Smallest Budget Deficit in 21 Years. The New Budget Bets on Keeping It That Way.

Pakistan's Ministry of Finance reported that the country is on track to post its smallest budget deficit in 21 years for the fiscal year ending June 2026, with the deficit projected at 3.6% of GDP. The primary surplus, which excludes interest payments on debt, reached 3.2%

Monetary Policy

Zambia's Inflation Fell From 11.2% to 9.4% in One Month. A Maize Harvest Did Most of the Work.

The Bank of Zambia cut its key policy rate by 75 basis points to 13.5% on February 11, 2026, the second consecutive rate cut, after annual inflation slowed sharply from 11.2% in December 2025 to 9.4% in January 2026. The scale of that single month decline is

Monetary Policy

Mexico's Peso Gained 16% Last Year. Now the Central Bank Is Cutting Rates Anyway. Here Is the Logic.

The Mexican peso was one of the best performing currencies in the world in 2025, appreciating almost 16% against the US dollar in what analysts nicknamed the superpeso rally. That made Banco de Mexico's decision in March 2026 to resume cutting interest rates, reducing its benchmark rate by

Fiscal Policy

Vietnam Is About to Enter the Emerging Market Index. But Building a Stock Market That Deserves the Title Is Harder Than Getting the Upgrade.

FTSE Russell's decision to upgrade Vietnam to secondary emerging market status effective September 21, 2026, is the most significant development in Vietnam's capital market history. The move will channel an estimated $6 billion from passive index trackers and up to $25 billion in total long-term

Fiscal Policy

France Has a €44 Billion Budget Plan. Whether It Can Actually Deliver Is Another Question Entirely.

The French government under Prime Minister Sébastien Lecornu entered 2026 with a budget package containing €44 billion in fiscal measures, equivalent to approximately 1.5% of GDP. The plan targets a public deficit of no more than 5.1% of GDP this year, a modest improvement from 5.4% in

Monetary Policy

Malaysia's Central Bank Has Held Rates at 2.75% for Almost a Year. The IMF Says That Is the Right Call.

Bank Negara Malaysia reduced its overnight policy rate to 2.75% in July 2025 and has held it steady since. That is nearly twelve months of unchanged rates in an environment where central banks across Europe, Australia, and parts of Africa have been actively moving their benchmarks in either direction,

Monetary Policy

Singapore Does Not Set Interest Rates. It Manages Its Currency Instead. Here Is Why That Decision Just Got Harder.

Most central banks around the world adjust monetary policy by raising or lowering interest rates. Singapore's Monetary Authority takes a fundamentally different approach. Instead of setting a benchmark rate, the MAS manages monetary policy by controlling the level and rate of appreciation or depreciation of the Singapore dollar

Monetary Policy

The World Is Splintering Into Trade Blocs. For Developing Countries, That Is Both an Opportunity and a Threat.

Something significant is happening to the architecture of global trade, and it is moving faster than most policymakers anticipated. What is often called deglobalisation is more accurately described as a targeted recalibration. Certain sectors, technologies, and supply chains are being reorganised around geopolitical priorities rather than cost efficiency alone. This

Monetary Policy

Nigeria's Rate Is 26.5%. South Africa Just Hiked to 7%. Why African Central Banks Are Tightening While the World Eases.

While central banks in Europe, Canada, and parts of Asia were cutting rates through 2025, most African central banks were moving in the opposite direction, raising rates sharply or holding them at levels that make borrowing painfully expensive for businesses and households. In 2026, that divergence is widening. Zimbabwe maintains

Fiscal Policy

Trump's Tariffs Have Raised the Average US Household's Tax Bill by $1,500. Here Is What the Data Actually Shows.

The debate over whether American protectionism is working depends entirely on which number you look at and whose analysis you trust. In 2026, both sides of that argument have data. The Trump tariffs represent the largest US tax increase as a percentage of GDP since 1993 and amount to an

Monetary Policy

The UAE Just Launched a Digital Dirham. China Has 1.8 Billion CBDC Wallets. The Race for Digital Money Is Moving Fast.

Central bank digital currencies are no longer a future concept. In 2026, they are live infrastructure in some of the world's most significant economies, and the gap between leaders and followers is widening rapidly. The Central Bank of the UAE officially launched the Digital Dirham for retail use

Fiscal Policy

Poland Has the Highest Fiscal Deficit in the EU This Year. Defence Spending Is the Reason. Here Is the Full Picture.

Poland is growing faster than almost any other country in Europe. It is also running the European Union's largest fiscal deficit as a share of GDP in 2026. Those two facts are not contradictions. They are directly connected. Fiscal consolidation is expected to advance in 2026, with the