Global Economic Brief August 28, 2025

(MENAFN- The Rio Times) The United States delivered the strongest performance among advanced economies. The Commerce Department confirmed GDP rose 3.3% in Q2, rebounding from a 0.5% contraction.

Consumer spending climbed 1.6% and imports fell almost 30%, narrowing the trade gap. Corporate profits rose 2%, and jobless claims declined to 229k.

Payroll growth slowed to 35k a month, but layoffs remain limited. Weak business investment (−13.8%) is the main drag. Europe remains stagnant.

German car registrations jumped 11.1% YoY, but France and Italy reported declines. Confidence indicators fell again, and consumer sentiment hit its lowest in two years. Switzerland's growth slowed to 0.1% QoQ.

Asia shows contrasts. Japan's Tokyo Core CPI cooled to 2.5% from 2.9%, while industrial production dropped 1.1% MoM, signaling fragile momentum.



By contrast, India's industrial production surged 3.5% YoY, with manufacturing up 5.4% MoM, confirming robust growth. Elsewhere, Canada posted rising wages (+3.7% YoY) but a sharply wider current account deficit (−21.2B).

Brazil's IGP-M inflation index swung positive (+0.36% MoM) after a contraction, and South Africa's PPI accelerated to 1.5% YoY, raising inflation risks. Mexico 's jobless rate held steady at 2.6%, showing labor resilience.

Takeaway: The U.S. economy stands out as the clear engine of Western growth, contrasting with Europe's stagnation and Japan's cooling cycle.

India emerges as the second major bright spot, while Canada, Brazil, and South Africa show imbalances. For global markets, the divergence reinforces U.S. and Indian strength as key investment destinations.

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