latest news in economy
Commerce Secretary Projects Strong Q1 Growth and Warns EU Against Trade Retaliation
Davos, Tuesday, 20 January 2026.
Defying conservative forecasts, Secretary Lutnick projects Q1 growth exceeding 5% and warns European allies that retaliating against Greenland-related tariffs risks spiraling into a “tit-for-tat” trade war.
Canadian Inflation Ticks Up to 2.4 Percent Driven by Past Tax Comparisons
Ottawa, Tuesday, 20 January 2026.
Headline inflation hit 2.4 percent due to tax-year effects, yet core prices cooled. Strikingly, coffee prices surged 30.8 percent, highlighting persistent grocery affordability issues despite stabilizing trends.
US Secures $500 Billion Commitment to Reshore Taiwan's Semiconductor Supply Chain
Washington D.C., Tuesday, 20 January 2026.
Secretary Lutnick detailed a historic $500 billion framework to relocate Taiwan’s semiconductor supply chain to American soil, leveraging massive credit guarantees to secure US technological independence.
IMF Raises 2026 Global Growth Forecast to 3.3% as AI Investment Offsets Trade Risks
Washington, Monday, 19 January 2026.
The International Monetary Fund (IMF) has revised its 2026 global growth forecast upward to 3.3 percent, identifying a persistent surge in artificial intelligence investment as a critical counterweight to recent trade volatility. In a compelling display of economic resilience, the IMF notes that the global economy is effectively “shaking off” the tariff disruptions of 2025 and is now performing better than predictions made before the protectionist measures began. While the easing of U.S. tariffs and robust growth projections for the United States and China underpin this optimism, the Fund cautions that this stability remains vulnerable to geopolitical escalations and the successful realization of anticipated AI productivity gains.