Economic Spotlight

With Brazil in the middle of a polarising political scenario, investors face a challenging environment in the markets that currently favour more defensive strategies.

They say that "a bird in hand is worth two in the bush", but Prime Minister Sanae Takaichi appears to believe the opposite: free the bird from its cage and trust that people will reward the gesture – and they did.  

The launch of Indonesia’s new sovereign wealth fund, Danantara, has sparked debate as it draws funding from state-owned enterprises. Subianto’s government is painting it as a high-risk, high-reward fund to attract global investors and drive domestic growth.

Germany’s manufacturing sector is in a decline, but this might not be the country’s biggest problem.

Recent changes to Malaysia’s Sales and Service Tax framework has affected the domestic property and construction sectors, resulting in some pessimism. Still, the government remains optimistic that both markets will thrive.

Thai businesses have been lagging behind in innovation compared to its ASEAN peers. In particular, small enterprises have been struggling financially to the point of some closing shop.

The UK’s fiscal deficit shows no sign of narrowing as government expenses continue to outpace tax revenues.

Solely focusing on climate change adaptation obscures the view about green tech’s ability to push the German economy forward.

The story of strong job creation and a resilient services sector continues in Brazil, but looming political risks, high inflation, and cautious monetary policy suggest a slower growth momentum ahead.

Malaysia’s manufacturing sector has contracted for the past year due to higher production costs and the impact of US tariffs. The government hopes to boost the industry with policy support and through economic integration.