Economy

Updates on the state of the economy, growth, inflation, and employment.

Economy
'Fail': US court blocks Trump's broad tariff orders
A United States federal trade court has blocked President Donald Trump from enforcing a broad set of tariffs, including his recently announced "Liberation Day" duties, ruling that he had exceeded his authority by unilaterally imposing levies on imports from nations with trading surpluses against the United States. The ruling was issued Wednesday by a three-judge panel in the U.S. Court of International Trade in Manhattan. The panel found that Trump unlawfully invoked emergency economic powers to justify tariffs that targeted a wide array of countries, ruling that the U.S. Constitution grants Congress sole authority over foreign commerce, a power not superseded by the president's emergency economic powers. "The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it," the judges wrote in their decision. The ruling came in response to two separate lawsuits: one brought by the Liberty Justice Center on behalf of five small U.S. importers, and another by a coalition of 13 states led by Oregon. The plaintiffs argued that the tariffs would severely impact their b
Economy
RBNZ cuts rates 25 basis points, one member dissents
The Reserve Bank of New Zealand (RBNZ) reduced its official cash rate (OCR) by 25 basis points to 3.25% on Wednesday, matching expectations and marking the lowest level since September 2022. The move extends the central bank’s current easing cycle to 225 basis points. However, in a rare split, one member of the monetary policy committee voted against the cut, citing uncertainty stemming from escalating United States tariffs. By a majority vote of five to one, the Committee opted for a 25 basis point reduction from 3.50%, as outlined in the media release. The decision comes amid mounting global economic concerns. “Projections for global economic activity have weakened since the February Statement, reflecting the shift towards protectionist policies in some major economies,” the Committee noted. Economic growth forecasts for both China and the United States have been revised downward, largely due to rising tariffs between the two. The Committee warned that heightened policy uncertainty was weighing on global consumption and investment, particularly as countries contemplate various fiscal and monetary responses. The possibility of substantial Chinese fiscal stimulus or additional U.S. fiscal expansion could have bro
Economy
National CPI steady at 2.4% in April; rebates helped
Australia’s monthly consumer price index (CPI) rose 2.4% in the year to April, maintaining the same pace as in March and February, according to fresh data from the Australian Bureau of Statistics (ABS). The result was slightly above market expectations of a 2.3% increase. “Annual CPI inflation has been steady at 2.4% for the past three months,” said Michelle Marquardt, ABS head of prices statistics. The trimmed mean inflation measure - designed to exclude the most volatile price movements - rose to 2.8% in the 12 months to April. The measure is designed to filter out extreme fluctuations such as the sharp annual declines in Automotive fuel and Electricity. "This was up slightly from the 2.7% inflation in March and has remained relatively stable for the past five months,” said Marquardt. The CPI indicator that excludes volatile items and holiday travel increased by 2.8% annually in April, up from 2.6% in March. This measure strips out categories such as Automotive fuel, Fruit and vegetables, and Holiday travel and accommodation. “The CPI excluding volatile items and holiday travel measures rose 2.8% in the 12 months to April, compared to a 2.6% rise in the 12 months to March,” Marquardt added. Annual inflation
Economy
Poorest nations face record China debt in 2025
China is on track to receive a record volume of debt repayments from developing countries in 2025, with the bulk of those payments coming from the world’s 75 poorest nations, according to a new study by the Lowy Institute. The Australian think tank’s latest report, Peak repayment: China’s global lending, warns that China is now collecting far more than it is lending, marking a major reversal from its previous role as a key financier for the Global South. “Now, and for the rest of this decade, China will be more debt collector than banker to the developing world,” said research fellow Riley Duke. This shift comes as new Chinese loans dry up and existing ones mature, particularly those linked to President Xi Jinping’s Belt and Road Initiative (BRI). The BRI, Beijing’s expansive global infrastructure plan, has funded projects across dozens of low-income countries - from roads and ports to hospitals and power stations. But the report finds that many of the most vulnerable countries are facing a “tidal wave” of repayments. In total, the 75 poorest nations are expected to pay China US$22 billion in 2025 alone, forming the majority of the $35 billion in repayments forecasted to be made to Beijing. Duke highlighted ho
Economy
Is Indonesia's membership exposing BRICS cracks?
At face value, it’s easy to conclude that the growing cadre of "card carrying" member states that belong to the BRICS block share anti-western sentiment and a genuine desire to "stick it" to United States trading alliances. However, on closer analysis nothing could be further from the truth. What’s increasingly evident within Indonesia’s recent addition to the BRICS nations is that all member states by no means walk in lock-step when it comes to either ideology or economic outlook. Growing suspicion over the bi-polar nature of the two very different camps joining BRICS also raises questions about what exactly BRICS is and why it was formed.A fractious groupWhile BRICS was born out of the non-aligned movement of the 1960s cold-war era, it is yet to galvanise as a formal organisation or an agreement-driven trading bloc. It’s hard to talk about BRICS without noticing the vast ideological differences between two distinct camps. On the one side, six of the BRICS nations are authoritarian regimes, led by Beijing and Moscow that are more overtly anti-western in their outlook. However, on the flipside there are democracies like India, Brazil, South Africa and Indonesia that want to take a more middle line and maximise th

Economy
National commercial TV network spending dips: ACMA
A new report by the Australian Communication and Media Authority (ACMA) found commercial TV networks invested A$1.62 billion on Australian programs in the 2023-24 financial year, representing 88% of total programming expenditure. This is down from $1.67 billion the previous year. Overall, the networks spent $1.84 billion on Australian and overseas programs combined, a decrease from $1.91 billion the previous year. Despite this there were multiple genres that experienced an increase in expenditure including Australian children’s drama and other, Australian light entertainment variety and other and Australian documentaries. Categories that maintained the same expenditure were Australian news and current affairs and ‘Overseas other’ programs. The report shows that $408 million was spent on trusted news sources, including continued funding for regional news and current affairs. This investment was welcomed by Free TV CEO Bridget Fair who said their commitment to local content for trusted news and sports content remains strong. “Despite challenging economic conditions and increasing competition from global digital platforms, Free TV broadcasters continue to step up and deliver for Australian audiences,” Fair said.
Economy
Japan's 900bn yen stimulus package targets Trump tariffs
Japan is rolling out a 900 billion yen (A$9.749 billion) emergency stimulus to counter United States President Donald Trump's latest tariffs, marking its first fiscal response to trade duties. The package, which could reach 2.8 trillion yen ($30.332 billion) with local government spending, aims to shield businesses and households from rising costs. With parliamentary elections looming, Prime Minister Shigeru Ishiba is moving swiftly to stabilise the economy and regain political ground. The stimulus focuses on utility bill subsidies and corporate financing support. It has 600 billion yen earmarked to curb electricity and gas price spikes and 300 billion yen set aside for struggling businesses. The government plans to tap 388 billion yen from its reserve fund and secure low-interest loans to finance relief measures. The move comes as Japan braces for a potential economic slowdown, driven by higher import costs and weak consumer spending. The utility subsidy program, first introduced in 2023 under former Prime Minister Fumio Kishida, was designed to offset rising energy costs linked to Russia’s war in Ukraine. It was also designed to offset yen depreciation. While crude oil prices have since declined, criti
Economy
Across 2021-2025, Sth Korea spent US$222bn on defence
South Korea has poured US$222 billion (A$339 billion) into defence spending from 2021 to 2025, ramping up its military capabilities amid rising tensions with North Korea and China’s growing assertiveness. The investment, according to GlobalData, a leading data and analytics company, spans advanced weapons systems, cybersecurity fortifications, and military readiness, signalling a strategic shift toward self-reliance. With 28,500 U.S. troops still stationed in the country, South Korea faces a delicate balance between indigenous defence expansion and continued reliance on American military support. South Korea's modernisation drive is based on home-grown military technology. The country has prioritised indigenous production, acquiring the KF-21 Boramae multi-role aircraft, K239 Chunmoo multiple rocket launch systems, and K9 self-propelled artillery systems. The successful 2022 flight of the KF-21 prototype marked a milestone in South Korea’s push for combat aircraft self-sufficiency, with full deployment expected by 2028.Credit: GlobalDataAnalysts say this shift reduces reliance on foreign imports while strengthening regional deterrence. Despite these advancements, North Korea’s nuclear-capable missile tests remain
Economy
Morocco makes top 10 in Africa for startup ecosystem
Morocco is making waves in Africa’s startup scene, securing a top 10 spot in the continent’s latest rankings. The Global Startup Ecosystem Index 2025, published by StartupBlink, shows Morocco climbing four places to 88th globally. This marks the highest growth rate in North Africa at over 23%. While the country’s startup ecosystem is expanding rapidly, challenges remain, particularly with funding and regulatory support. Casablanca is leading Morocco’s tech charge, jumping 42 places to 317th worldwide, with a 40% growth rate — the highest in North Africa. Morocco’s capital Rabat also gains ground, climbing seven spots to 811th globally. These cities are emerging as key innovation hubs, fuelled by a tech-savvy youth population, improved digital connectivity, and rising investment funds. Momentum is undeniable, but sustained progress requires strategic policy shifts. Despite Morocco’s progress, South Africa remains Africa’s top startup ecosystem, ranking 52nd globally, followed by Kenya (58th), Egypt (65th), and Nigeria (66th). Morocco’s rise is impressive, but it still lags behind regional heavyweights. The country’s entrepreneurial environment is stable, yet economic and social constraints hinder growt