latest news in economy
UK Economy Misses 2025 Growth Forecasts as Construction Sector Hits Four-Year Low
London, Thursday, 12 February 2026.
The UK economy expanded by 1.3% in 2025, missing expectations as the fourth quarter stalled. While manufacturing grew, the dominant services sector flatlined and construction plummeted 2.1%—its worst performance in four years—highlighting the fragility of the recovery.
January Deficit Shrinks to $95 Billion as Tariff Revenues Soar
Washington, Thursday, 12 February 2026.
The U.S. deficit fell 26% to $95 billion in January as customs duties quadrupled to $27.7 billion. This tariff-driven revenue surge successfully outpaced spending growth, offering a temporary fiscal improvement.
Declining Population Growth Projected to Slash U.S. GDP by $100 Billion in 2026
Washington, Wednesday, 11 February 2026.
A sharp demographic slowdown is set to cost the U.S. economy $100 billion this year. Analysis reveals a “growth gap” of 1.4 million fewer residents will eliminate vital household spending, threatening 741,500 jobs and challenging the nation’s reliance on workforce expansion.
Morgan Stanley Strategist Warns High Expectations May Lead to Market Letdown
New York, Wednesday, 11 February 2026.
Andrew Slimmon cautions that high earnings estimates and aggressive AI spending by hyperscalers signal a potential market letdown, advising a strategic shift into financials and industrials.
Markets Pause Near Record Highs as Investors Await Critical Economic Data
New York, Tuesday, 10 February 2026.
US equity markets halted their recent rally on Tuesday, February 10, 2026, as investors adopted a cautious stance ahead of a significant backlog of economic data. While the Dow Jones and S&P 500 hovered near record highs, the release of weaker-than-expected December retail sales—showing a stall in consumer spending—prompted a decline in bond yields to 4.14%, reinforcing expectations for Federal Reserve interest rate cuts. Conversely, the cryptocurrency sector faced renewed volatility, with Bitcoin tumbling below the $70,000 mark. The market’s attention now pivots to Wednesday’s delayed nonfarm payrolls report and Friday’s inflation data, which are critical for gauging the economy’s health following the recent government shutdown. This incoming “data deluge” is creating a complex trading environment characterized by a rotation out of volatile tech stocks into defensive sectors, as traders seek clarity on the monetary policy trajectory.
Emerging Markets Overtake G7 as Global Renewable Expansion Rate Halves
New York, Tuesday, 10 February 2026.
The global drive toward renewable energy hit a significant speed bump in 2025, with the growth rate for wind and solar projects falling to 11%, down sharply from 22% the previous year. This deceleration poses a serious risk to the COP28 goal of tripling capacity by 2030. In a stark geopolitical shift, G7 nations have fallen behind, now representing just 11% of the prospective project pipeline. Conversely, emerging economies are driving momentum, with China alone adding 1.5 terawatts—more than the next six countries combined. While the International Energy Agency forecasts that low-carbon sources could meet 50% of global electricity demand by the decade’s end, this relies on wealthy nations overcoming the grid bottlenecks and failed auctions that stifled progress throughout 2025. The data suggests that without immediate infrastructure investment, the 2030 climate targets may slip out of reach.
