latest news in economy
New Data Reveals a Strategic Shift Toward Measurable Returns in 2026 AI Budgets
New York, Thursday, 15 January 2026.
Embracing ‘AI realism,’ companies are increasing budget allocations to 5% in 2026, shifting focus from experimental hype to infrastructure, governance, and verifiable return on investment.
Goldman Sachs Warns: AI Productivity Boom May Sever Link Between Growth and Jobs
New York, Thursday, 15 January 2026.
Goldman Sachs’ Chief Economist Jan Hatzius identifies a critical shift in the US economy as we enter 2026: the traditional correlation between robust GDP growth and a healthy labor market is fracturing. While AI adoption is projected to drive productivity gains of up to 25%, this efficiency is actively decoupling economic expansion from job creation. Unemployment has already risen to 4.4% despite solid output, with youth unemployment spiking to 8.3%. This divergence suggests AI is accelerating the economy’s “speed limit” while simultaneously dampening labor demand, creating a paradox where the economy booms while workers struggle. As productivity trends accelerate, policymakers face the unprecedented challenge of navigating a “jobless growth” phase that could fundamentally alter the social contract.
Artificial Intelligence Revives Lending for Borrowers with Low Credit Scores
New York, Thursday, 15 January 2026.
Amidst tightening bank regulations in early 2026, artificial intelligence is unlocking credit for subprime borrowers by prioritizing current income stability over past credit history. This shift in risk assessment allows lenders to identify reliable applicants who are traditionally excluded by credit score cutoffs, effectively reshaping the consumer lending landscape.
Global Economy Defies Trade Barriers with Stronger Than Expected 2026 Outlook
Washington, Wednesday, 14 January 2026.
The World Bank upgraded 2026 growth forecasts to 2.6 percent despite historic tariffs. However, a quarter of developing nations remain poorer than pre-pandemic levels, highlighting a widening global economic divide.
Michael Burry Forecasts AI Sector Collapse and Potential Market Panic by 2027
New York, Wednesday, 14 January 2026.
Predicting nearly all AI companies will face bankruptcy, Burry warns of a potential 2026-2027 market panic, arguing the sector resembles a ‘department store escalator’ that benefits users, not investors.
China's Trade Surplus Hits Record $1.2 Trillion as Exporters Pivot to Emerging Markets
Beijing, Wednesday, 14 January 2026.
On January 14, 2026, China reported a historic trade surplus of $1.19 trillion for 2025, demonstrating remarkable resilience against geopolitical headwinds. Despite a 20% decline in exports to the United States amid renewed tariffs, Chinese manufacturers successfully pivoted toward alternative markets. Shipments to Africa surged by 25.8%, while exports to ASEAN nations grew by 13.4%, effectively offsetting losses in North America. The data reveals a strategic shift in global trade dynamics fueled by high-tech manufacturing; exports of semiconductors and ships rose by over 26%, while electric vehicle shipments jumped nearly 49%. However, this external success contrasts with internal challenges, as flat import data highlights continuing weakness in domestic demand and the property sector. This divergence suggests China remains the world’s dominant export engine, even as it navigates a decoupling from the U.S. economy.
Dimon Warns DOJ Probe Into Federal Reserve Could Trigger Higher Interest Rates
New York, Wednesday, 14 January 2026.
JPMorgan’s CEO warns the administration’s criminal probe into Chair Powell will backfire, creating market instability that forces the very interest rate hikes the White House hopes to prevent.
December Inflation Data Reveals Cooling Trend as Price Growth Slows Unexpectedly
Washington D.C., Tuesday, 13 January 2026.
Core inflation hit a four-year low of 2.6% in December, missing forecasts. This cooling trend offers the Federal Reserve a confident signal of stability despite recent government shutdown distortions.