Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Germany’s economic outlook remains cautious, with a new forecast from the German Economic Institute (IW) indicating only modest improvement in 2025 as global trade falters and domestic financial pressures intensify. According to figures shared with Reuters, Germany’s real GDP is expected to inch up by just 0.1% in 2024 after two consecutive years of contraction. Growth is projected to accelerate to 0.9% in 2025, though IW notes that roughly one-third of this increase stems from a calendar effect that adds nearly two and a half additional working days compared to the year prior.
IW chief economist Michael Groemling said the country is “emerging somewhat from its state of shock,” but lingering challenges continue to weigh on the recovery. Export demand remains weak due to slowing global trade and heightened geopolitical tensions, including the impact of U.S. tariff policies. After an anticipated 4.5% increase in 2025, world trade growth is expected to cool sharply to just 1.5% in 2026, further straining Germany’s export-driven economy.
Fiscal pressures are also mounting. IW forecasts that taxes and social contributions will rise to a record 41.5% of GDP in 2025, up from 40.2% the previous year. Higher defense spending, infrastructure investments, and expanding social obligations—such as pensions and health insurance—are driving this increase. Germany’s debt-to-GDP ratio is projected to climb to 66%, while the government’s share of economic output will surpass 50%.
Investment activity will remain subdued, with private sector investment hampered by foreign trade uncertainty and government investment plans not expected to advance significantly. Still, combined private and public investment may contribute about half a percentage point to growth in 2026.
Despite inflation stabilizing near 2%, consumer spending is unlikely to fully recover as employment prospects remain weak. Unemployment is expected to hover around 3 million, and job losses in the industrial sector are likely to continue, reinforcing a muted outlook for Europe’s largest economy.
