USA: Declining Consumption and Rising Trade Deficit
U.S. consumers unexpectedly cut back on purchases of big-ticket items like automobiles in January, as severe winter weather disrupted spending patterns across multiple sectors.
U.S. consumers reduced spending on goods like automobiles in January, influenced by adverse weather conditions. Additionally, demand for services also slowed, raising concerns about the sustainability of consumption. Meanwhile, the trade deficit for goods reached $153.3 billion, driven by record imports of industrial supplies.
In the agricultural sector, the U.S. is projected to post a deficit of $49 billion by 2025. Walmart CEO Doug McMillon noted that consumers are opting for smaller packaging due to high food prices. “There’s clear pressure on household budgets,” he stated.
‘The combination of moderate consumption and pending tariffs strains economic balance.‘
Europe: Defense and Infrastructure Investments Under Pressure
NATO enlargement in Europe
Around 90% of NATO members will meet the target of spending 2% of GDP on defense by 2025. The European Union aims to unlock €300 billion for military reinforcement, its largest initiative since the Cold War. However, critics warn of budget overextension risks.
In the UK, a plan to invest £900 billion in infrastructure by 2029 is already facing criticism. Experts predict logistical bottlenecks and inflation in sectors like construction and energy. “It’s an ambitious but risky leap,” analyzed an economist from the Boston Consulting Group.
‘The race for security and development exposes structural vulnerabilities.‘
Germany and Asia: Costly Energy and Uneven Growth
German households pay 31% more for energy since 2022, according to a recent study. Taxes and grid fees account for 60% of total costs, posing an urgent challenge for the new government. In contrast, India revised its GDP upward, driven by public spending and rural consumption.
In Japan, the number of births fell to 720,988 in 2024, the lowest since 1899. An aging population strains pension systems as the workforce shrinks. “It’s a demographic time bomb,” warned an analyst.
‘While India advances, Europe and Asia grapple with social and energy costs.’
Central Banks: Caution Amid Global Uncertainties
Israel kept interest rates unchanged for the ninth consecutive meeting, awaiting post-conflict inflation easing. Hungary and The Gambia followed suit. Conversely, South Korea and Thailand cut rates to stimulate growth amid fragile domestic demand.
‘Cautious monetary policies reflect geopolitical uncertainties and uneven inflationary pressures.‘