AC Industry Faces Weather Disruptions and Rising Costs Ahead of Peak Summer Season India: Air-conditioner manufacturers in India are proceeding cautiously as unseasonal rains across several regions disrupt the early summer demand cycle, which typically peak in March. The industry is also facing rising input costs due to geopolitical tensions in West Asia, leading to higher prices of raw materials such as plastics and reduced LPG supply impacting production. Manufacturers have

Middle East Conflict and Gas Crisis Pressure Indonesian Industry INDONESIA: Indonesian industrial sector is facing mounting pressure due to the combined impact of escalating tensions in the Middle East and a domestic gas supply crisis. Disruptions in global energy markets have contributed to rising gas prices, while local supply constraints have further intensified the challenge for energy-intensive industries. These conditions have significantly increased production costs, p

China’s Consumer Inflation Hits Three-Year HIGH as Producer Deflation Eases CHINA: China’s consumer price index (CPI) surged 1.3% year‑on‑year in February 2026, marking the largest increase in over three years, driven by strong spending during the extended Lunar New Year holiday. Core CPI, excluding food and energy, rose 1.8%, matching levels last seen in March 2019. Meanwhile, the producer price index (PPI) fell 0.9%, slower than expected, signalling easing deflationary pres

Middle East Conflict with Iran Fuels Energy Shortages and Inflationary Strains Across Asia MIDDLE EAST: The conflict involving the U.S., Israel, and Iran is causing widespread economic disruptions across Asia, with the Strait of Hormuz effectively closed, halting around 80% of regional oil imports. Countries including India, Thailand, Bangladesh, and the Philippines have implemented fuel rationing, reduced working hours, and caps on energy prices to mitigate surging costs. Th

Malaysia’s Fuel Subsidy Costs Surge Amid Iran Conflict MALAYSIA: Malaysia is set to spend approximately US$812.8 million per month to maintain subsidised petrol and diesel prices, as the ongoing US‑Israeli conflict with Iran disrupts global oil and gas shipments. The Strait of Hormuz closure has pushed Brent crude prices as high as US$119 per barrel, forcing governments across Southeast Asia to implement measures to protect consumers. Malaysia’s finance authorities said the s

China Sets 2026 GDP Growth Target at 4.5%–5% Amid Economic Pressures China: China has set its 2026 GDP growth target at 4.5%–5%, the lowest target since the early 1990s, according to the government work report released during the annual meeting of the National People’s Congress. The government maintained its budget deficit target at around 4% of GDP, first set in 2025 and the highest level since 2010, while keeping the consumer inflation target at around 2%. Authorities also

Rising Middle East Conflict Impacts Shipping, Oil Prices, and International Trade MIDDLE EAST: Rising geopolitical tensions and policy changes are creating fresh uncertainty in global trade. Escalation in the Middle East following US and Israeli strikes on Iran pushed oil and gas prices higher, with Brent crude briefly exceeding $82 per barrel. The situation has disrupted shipping through the Strait of Hormuz, a route carrying around 20% of global oil and LNG, while attacks a

GDP INDIA: India’s economy expanded by a stronger-than-expected 7.8% in the quarter ending December, surpassing the 7.2% growth forecast in a Reuters survey of economists. The latest figures follow a revision in the methodology used to calculate economic output, aimed at enhancing accuracy. Under the updated series, the previous quarter’s GDP growth has been revised upward from 8.2% to 8.4%. The government has also increased its GDP growth projection for financial year 2026

US–Indonesia Trade Deal Cuts Tariffs to 19% and Secures Palm Oil Exemption Indonesia: Indonesia and the United States finalized a trade deal on Thursday reducing US levies on Indonesian goods to 19% from 32%, with exemptions for palm oil accounting for about 9% of Indonesia’s exports as well as coffee, cocoa, rubber and spices. The agreement was signed in Washington by Airlangga Hartarto and Jamieson Greer after months of negotiations. The 19% rate aligns with US deals with M

Kuwait Draft Budget Sets Higher Capital Spending and Wider Deficit Kuwait: Kuwait’s Ministry of Finance has projected capital spending of around KWD 3.1 billion (USD 10.0 billion/EUR 9.2 billion) in the draft budget for the 2026–2027 fiscal year. The ministry said most capital allocations are expected to be directed towards airport expansion, the Mubarak Al-Kabeer port, and water and power projects. The draft budget forecasts a deficit of around KWD 9.8 billion (USD 32.0 bill

European Parliament Committee Calls for EU Action on Housing Affordability European Union: The European Parliament’s Special Committee on the Housing Crisis has adopted its final recommendations on addressing the housing crisis across the European Union. The report calls for EU legislation to support the viability and cost of building new housing, while also urging targeted use of funding under the Commission’s Affordable Housing Plan to improve energy performance in residen

US Inflation Remains Above Target Amid New Price Pressures USA: US inflation remains above target and may be accelerating, reducing the likelihood of near-term Federal Reserve rate cuts. The Fed’s preferred measure, core PCE inflation, is estimated to have reached 3% in December, its fastest pace in over two years and well above the 2% target. Early 2026 data also point to renewed price pressures. Adobe’s Digital Price Index recorded its sharpest January rise in 12 years, wit

RMB Secures US$ 0.28 billion (R4.45bn) Funding to Back Reatile Group’s Energy Growth SOUTH AFRICA: Rand Merchant Bank (RMB) has finalised a US$ 0.28 billion (R4.45 billion) funding package to support South Africa-based Reatile Group’s expansion across the energy sector, including gas, petrochemicals, fuel storage and renewables. The financing, announced on 5 February 2026, includes a US$ 0.21 billion (R3.35 billion) holding company facility and a US$ 0.07 billion (R1.1 billio

Ukraine Ukraine: The country received its first shipment of liquefied natural gas (LNG) from the United States in 2026, delivered through Poland, totaling nearly 100 million cubic meters, enough to supply around 700 000 households with gas for one winter month. The delivery comes amid cold winter conditions and ongoing disruptions to energy infrastructure during the war, with further US LNG shipments already contracted for February-March. Total US LNG supplies to Ukraine this

India’s Union Budget 2026–27 Reinforces Infrastructure-Led Growth INDIA: India’s Finance Minister Nirmala Sitharaman has presented the Union Budget for 2026–27, reinforcing the government’s infrastructure-led growth strategy with a record outlay of ₹12.2 trillion (USD133 billion) for infrastructure in FY2027—an 11.4% increase year on year. Roads, ports and railways remain central to the agenda of the Narendra Modi government, with a renewed emphasis on expanding connectivity

Economy Slows to 4.4% Growth Philippine: The Philippine economy slows to 4.4% in 2025, marking its slowest growth in five years, as a corruption scandal linked to infrastructure projects, trade headwinds, and a series of typhoons weighed heavily on activity. The Philippine Statistics Authority said gross domestic product grew 3% in the fourth quarter, down from a revised 3.9% in the third quarter, making it the weakest quarterly performance since the 3.8% contraction recorded

tariffs INDIA: India and the European Union reached a long-awaited trade agreement on Tuesday, aimed at significantly reducing tariffs on most goods to boost bilateral trade and lessen dependence on the United States amid rising global trade tensions. The deal is expected to double EU exports to India by 2032 by removing or lowering tariffs on 96.6% of traded goods by value, generating an estimated €4 billion ($4.75 billion) in duty savings for European companies, according t

France Unveils Ambitious Housing Recovery Plan Targeting Two Million Homes by 2030 FRANCE: French Prime Minister Sébastien Lecornu has presented a wide-ranging housing recovery plan aimed at addressing the country’s prolonged housing crisis. Central to the strategy is a target to build two million homes by 2030, equivalent to around 400,000 units per year, a significant increase from recent construction levels. The plan combines unprecedented financial support for social hous

US Economy US: The US economy expanded at a faster pace than previously estimated in the third quarter, with gross domestic product revised up to a 4.4% annualised rate, according to updated data from the Bureau of Economic Analysis. The revised figure marked the strongest quarterly growth since the third quarter of 2023, compared with 3.8% growth in the second quarter. The upward revision reflected stronger exports and business investment, while higher imports partially offs

Beijing’s GDP Crosses USD 743.8 Billion in 2025, Growing 5.4% Year-on-Year China: Beijing’s gross domestic product (GDP) exceeded USD 743.79 billion in 2025, marking a 5.4% year-on-year increase and crossing the USD 714 Billion equivalent milestone for the first time, according to the municipal statistics bureau. The achievement underscores the steady economic expansion of the Chinese capital, as GDP rose beyond the equivalent of USD 714 billion, reflecting sustained growth m