CareEdge Releases Global Economy Update Highlighting Trade, Policy and Regional Trends for January 2026

CareEdge Ratings has published its Global Economy Update for January 2026, providing an overview of recent developments in international trade, monetary policy, and regional economic performance. The report examines shifts across major economies, with a focus on trade flows, fiscal and monetary policy directions, and emerging regional risks and opportunities.

The January 2026 edition of the CareEdge Global Economy Update outlines a slowdown in global merchandise trade, alongside a decline in the US average effective tariff rate, even as global purchasing managers’ indices remain in expansionary territory. The report also notes diverging monetary policy trajectories between the European Central Bank and the US Federal Reserve, reflecting differences in inflation and growth dynamics.

Across the Asia-Pacific region, the analysis highlights China’s trade surplus exceeding USD 1 trillion, driven largely by subdued domestic demand. In India, the central government is expected to continue adhering to its fiscal consolidation roadmap. The report also points to rising political instability in Bangladesh, occurring alongside a moderation in economic growth.

In the Americas, the United States recorded an upside surprise in GDP growth despite signs of softness in the labour market. Mexico has raised tariffs on imports from China and countries without bilateral trade agreements, while Chile witnessed the election of Jose Antonio Kast as president, followed by a policy rate cut by the Central Bank of Chile (BCCH). Argentina continues its transition toward policy normalisation, according to the update.

The European section of the report notes improving conditions in the Euro Area banking sector, reflected in declining non-performing loan ratios. In Germany, recent pension reforms are cited as an indicator of underlying coalition challenges.

Within Africa, Kenya has seen improvements in its current account balance, supporting the accumulation of external buffers. Meanwhile, Mauritius is projected to record a historic high in tourist arrivals, contributing to economic activity in the island nation.

CareEdge’s report offers a consolidated view of these developments, providing context on how global and regional economic trends are evolving as 2026 begins.