2nd May 2025

U.S. Economy Contracts in Q1 Amid Tariff-Induced Import Surge

• The U.S. economy shrank for the first time in three years during Q1 2025, as businesses accelerated imports ahead of new tariffs. This led to a trade imbalance and raised concerns over a potential recession.

IMF Raises U.S. Recession Risk to 40%

• The International Monetary Fund has increased the probability of a U.S. recession to 40%, citing escalating trade tensions and downgraded the country's 2025 growth forecast from 2.7% to 1.8%.

China Considers U.S. Overtures for Trade Talks

• China is evaluating recent U.S. proposals to initiate trade negotiations, potentially paving the way for easing tensions between the world's two largest economies.

Oil Prices Post Largest Monthly Drop Since 2021

• Oil prices fell sharply in April, marking the steepest monthly decline in over three years, as trade war concerns dampened demand outlooks and Saudi Arabia signalled potential production increases.

U.S. and Ukraine Sign Comprehensive Minerals Deal

• The United States and Ukraine have signed a memorandum of intent to develop Ukraine's critical mineral resources and establish a reconstruction investment fund, strengthening economic ties and signalling unity against Russian aggression.

Global Markets Rally on Strong Tech Earnings

• Global stock markets rose, with the S&P 500 and Dow Jones Industrial Average extending their winning streaks, driven by robust earnings from major tech companies like Microsoft and Meta Platforms.

News written by Jin-Soo Pak | Published by Zhangir Zhangaskin