US fiscal situation gets worse

Economy Watch · Jul 29, 2025 · 4m

Kia ora,

Welcome to Wednesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.

I'm David Chaston and this is the international edition from Interest.co.nz.

And today we lead with news the IMF says global growth is projected at 3.0% for 2025 and 3.1% in 2026, an upward revision from the April 2025 World Economic Outlook. This reflects front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions.

But first, the overnight GDT Pulse dairy prices came in without the…