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AssessmentsApr 7, 2026 | 20:33 GMT
Japanese Foreign Minister Toshimitsu Motegi answers questions at a legislative budget committee session in Tokyo on April 7, 2026, while Prime Minister Sanae Takaichi (left) looks on.
Reviewing Japan's New Budget: Balancing Spending Hikes and Fiscal Reality
Japan's new budget will enable increases in strategic investments and defense expenditure, but future spending increases will remain constrained by relatively low economic growth and a large, if manageable, government debt burden. On April 7, Japan's upper legislative chamber approved the fiscal year 2026 budget proposed by Japanese Prime Minister Sanae Takaichi, weeks after the lower house gave its ascent. Following her decisive victory in the February lower-house elections, Takaichi is partly trying to emulate former Prime Minister Abe Shinzo's economic policies by increasing fiscal deficit spending and raising investment in critical economic sectors. Furthermore, the budget aims to accelerate strategic, state-led investments across seventeen priority sectors, including artificial intelligence, semiconductor manufacturing and shipbuilding. These investments are designed to bolster economic resilience and foster long-term productivity growth amid demographic challenges and sluggish economic growth. Following a supplemental budget passed last December, which aimed to raise defense expenditure to 2% of
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Japan
Economics
Military & Security
Politics
AssessmentsApr 3, 2026 | 19:21 GMT
Iraqi women light candles in memory of the victims of the U.S.-Israeli attacks on Iran and Lebanon during a rally in Baghdad's Tahrir Square on April 2, 2026.
Iraq Is Caught in the Crossfire of Another Destabilizing War
In Iraq, violent spillover from the Iran conflict will further strain pre-existing domestic divisions, while likely stalling the government formation process and fueling U.S. pressure for militias to disarm; reduced state revenue from disrupted oil exports will also hamper public service provision and push Iraq to increase borrowing. On April 2, the U.S. embassy in Baghdad urged Americans to leave the country, warning that "Iraqi terrorist militia groups aligned with Iran may intend to conduct attacks in central Baghdad in the next 24-48 hours." The alert followed U.S. claims that Kataib Hezbollah, an Iran-backed militia within Iraq's Popular Mobilization Forces (PMF), had kidnapped an American journalist working in Baghdad on March 31. Since the United States and Israel began striking Iran in late February, PMF militias have conducted numerous retaliatory attacks across Iraq, including against the U.S. embassy in Baghdad, U.S. military bases and hotels frequented by Americans in the
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United States
Iran
Iraq
Economics
Energy
Military & Security
Politics
AssessmentsMar 31, 2026 | 17:02 GMT
This photo, taken in Lima in November 2024, shows Chinese President Xi Jinping (left) and Peruvian President Dina Boluarte attending the inauguration ceremony for the Chinese-built and operated "megaport" in the small Peruvian town of Chancay.
How the U.S.'s Anti-China Strategy for Latin America Could Unfold
The United States will boost defense and economic cooperation, leverage development finance and make military and economic threats to pressure Latin American governments to favor U.S. interests and counter China, but outcomes will vary depending on their economic reliance and ideological affinity with Washington. On March 7, U.S. President Donald Trump hosted 12 ideologically aligned Latin American leaders at the "Shield of the Americas" summit in Florida. The event created a coalition to fight drug trafficking with military means and counter "hostile foreign influence" in the Western Hemisphere. It marked a new step in Washington's efforts to formally establish U.S. primacy in the region by limiting rivals' influence (especially from China, Russia and Iran), rewarding aligned governments, expanding security partnerships and securing U.S. firms' access to critical material supply chains. The summit was the latest example of the White House's enforcement of a "Trump Corollary" to the Monroe Doctrine (dubbed
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Americas
United States
China
Economics
Environment, Science & Technology
Military & Security
Politics
AssessmentsMar 27, 2026 | 18:42 GMT
A general view of power lines near the Lethabo power station between Vereeniging and Sasolburg, South Africa, on April 17, 2024.
The Outlook for South Africa's Power Sector Reforms and Energy Security
South Africa's power sector reforms will likely spur rising investment in electricity generation and transmission projects despite remaining years away from completion, but the country remains exposed to a high risk of resurging rolling blackouts from 2029 onward if it presses ahead with plans to decommission many of its coal-fired power plants.
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South Africa
Economics
Energy
Environment, Science & Technology
Politics
AssessmentsMar 26, 2026 | 18:11 GMT
Cars drive past a gas station in Ponte Leccia on the French Mediterranean island of Corsica on March 26, 2026.
How the EU Is Responding to Its Latest Energy Crisis
While Gulf oil and gas supply disruptions are driving higher and more volatile energy prices in Europe, EU-wide market interventions remain unlikely, leaving a fragmented patchwork of national relief measures that will only partially shield households and industry, and although Europe will avoid physical shortages, high prices will continue to weigh on industrial competitiveness and economic growth.
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Iran
Europe
Economics
Energy
Military & Security
Politics
AssessmentsMar 25, 2026 | 19:00 GMT
A medicine distributor stores Mounjaro (tirzepatide) self-injecting GLP-1 prefilled pens and vials in a fridge at his office in Thane, India, on March 20, 2026.
The Growth Outlook for India's Pharmaceutical Sector Remains Strong, Despite Global Uncertainties
Despite ongoing global trade and energy uncertainties, India's pharmaceutical and medical technology sectors are set to experience strong growth driven by manufacturing incentives, regulatory reforms and improved access to foreign markets, although supply-chain vulnerabilities, reliance on imported APIs and U.S. trade investigations pose risks of production disruptions, export delays and market volatility.
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United States
Iran
Kuwait
Oman
Saudi Arabia
United Arab Emirates
Yemen
Europe
India
Economics
Environment, Science & Technology
Politics
AssessmentsMar 20, 2026 | 15:08 GMT
People walk along the corniche area on the occasion of Eid al-Fitr, marking the end of the holy month of Ramadan, in Abu Dhabi on March 20, 2026.
Gulf Arab States, Shaken by Iran War, Plan Economic Pivot
The Gulf Cooperation Council states will shift their economic strategies to domestic and core regional interests as a result of the Iran war, with a renewed focus on domestic infrastructure, safety nets and strategies for comparative advantage to help them recover some of the attractiveness lost during the war. This is likely to impact international investments, long-term domestic projects and reshape their economic links. GCC member states face varying degrees of economic impacts from the closure of the Strait of Hormuz and accompanying Iran war that began Feb. 28. According to Goldman Sachs forecasts, a two-month closure could cause loss of up to 14% GDP for Qatar and Kuwait and 3-5% GDP for Saudi Arabia and the United Arab Emirates in 2026. However, such estimates are preliminary and do not fully account for potential future damage to regional infrastructure, the possibility of food and fuel shocks pushing up the costs
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United States
Bahrain
Iran
Israel
Kuwait
Oman
Saudi Arabia
United Arab Emirates
Economics
Energy
Global Trade
Military & Security
Politics
AssessmentsMar 18, 2026 | 19:32 GMT
A man fills up his truck at a Petroleum Sarawak Berhad (Petros) station in Kuching, Malaysia, on June 20, 2025.
Malaysia's Ballooning Fuel Subsidy Costs Will Test the Government's Reform Agenda
Malaysia is absorbing the Iran war's energy shock through fuel subsidies, but if higher prices persist, the government may have to sacrifice economic reforms to preserve political support ahead of the next election. Following the onset of the U.S.-Israeli campaign against Iran on Feb. 28 and the resulting disruption to shipping through the Strait of Hormuz, Malaysia has sought to shield domestic consumers from rising global fuel costs by maintaining subsidized gasoline prices. On March 11, Malaysia's finance ministry confirmed that the government would keep the price of RON95 gasoline at roughly $0.51 per liter (RM1.99) under the BUDI95 targeted subsidy program, thereby preventing higher global oil prices from passing through to consumers. The decision significantly increased government spending on fuel subsidies as the state compensates fuel retailers for the gap between fixed pump prices and higher market-based costs (albeit with part of the fiscal burden offset by revenues from
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Malaysia
Energy
Politics
AssessmentsMar 13, 2026 | 20:22 GMT
A digital illustration of Pakistan and Saudi Arabia’s national flags.
In a War With Iran, the Pakistani-Saudi Defense Pact Has Limits
Despite the two countries' mutual defense agreement, Pakistan will likely avoid direct military intervention in support of Saudi Arabia against Iranian strikes and instead limit its role to defensive and technical support given the risk of Iranian retaliation, domestic sectarian tensions, economic pressures and Pakistan's ongoing conflict with the Afghan Taliban; yet a more active role from Islamabad remains possible if Iranian attacks were to seriously threaten Saudi energy infrastructure or the kingdom's broader stability. Following Iran's recent missile and drone strikes on Saudi territory, Pakistan and Saudi Arabia have been coordinating closely in the context of their new mutual defense agreement, signed in September. On March 7, Pakistan's army chief, Gen. Asim Munir, met with Saudi Defense Minister Prince Khalid bin Salman in Riyadh to discuss potential joint actions under the agreement, which stipulates that an attack on one country is considered an attack on both. Days later, on
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Iran
Saudi Arabia
Pakistan
Economics
Energy
Military & Security
Politics
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