Hello MarketShalians, Welcome to today’s World Economy Actions and Its Impact financial blog at MarketShala. Let us take a look at what major buzz related to the economic actions are taking place in the country and the world and what impact they are going to have.
Table of Contents
Manufacturing Slumps as Philly Fed Index Sees Historic Decline
Philly Fed Index Suggests Manufacturing Sector Slowdown. The Philadelphia Federal Reserve’s April 2025 Manufacturing Business Outlook Survey revealed a sharp decline in manufacturing activity, with the general activity index falling to -12.5 from the previous month’s +26.4. This significant decline, one of the largest ever recorded, was marked by decreases in new orders, shipments, employment, and work week hours. New orders reached their lowest level since April 2020, indicating potential recessionary pressures. Despite the current contraction, the survey’s six-month forward expectations show some hope for improvement.
The Philadelphia Fed Manufacturing Survey has experienced a monthly drop of this magnitude only three times before, twice during the spring of 2020 and once in October 2008.
Diavik Diamond Mine Shutdown to Reshape Global Market
The closure of the Diavik Diamond Mine, located in Canada’s Northwest Territories, in early 2026 will mark the end of an important chapter in global diamond production. As one of the world’s richest diamond deposits, Diavik has been a cornerstone of the Northwest Territories’ economy, contributing more than 10% to the territory’s GDP and producing more than 144 million carats of rough diamonds since its commercial operations began in 2003. Managed by Rio Tinto, the mine’s closure is part of a planned lifecycle, with progressive reclamation and site cleanup scheduled to be completed by 2029. The shutdown may influence the global diamond industry and could have an indirect effect on initiatives like Karelian Diamond Resources’ projects in Finland.
India Set to Become World’s 3rd Largest Economy within Two Years
Based on the latest GDP and growth rates, if current trends continue India will overtake Japan in about 5 months and Germany in about 26 months. Therefore, assuming these growth rates remain stable, India could become the world’s third largest economy after the US and China in a little over two years.
In 20 years, economic metrics such as GDP, per capita income and dollar-based terms will become irrelevant. India’s purchasing power will increase with de-dollarization and a new world order after the period 2025-27, making it the world’s second largest economy.
As Ukraine Inks Mineral Deal with U.S., Global Economic Anxiety Intensifies
Ukraine and U.S. confirm signing of framework mineral deal. Signing for Ukraine was the economy minister. There is a lot of panic in Ukraine that this will turn the UA into an economic colony of the USA. Also “tectonic” changes are needed in UA legislation, said one opposition leader.
World Economy on Shaky Ground: U.S. Recession Looms, Central Banks Take Diverging Paths, Fin Bullets
- ECB cuts interest rates by 0.25%
- The Bank of Canada has kept interest rates steady after seven consecutive cuts.
- Powell says the Fed may wait before considering any interest rate changes, at least for now.
- US retail sales hit a 26-month high in March as shoppers rush to avoid tariff-related price hikes.
- The US recession, which is increasingly becoming part of analysts’ forecasts, will inevitably drag the rest of the world down with it.
- In an interview with a CMG reporter, Hidetoshi Tashiro, chief economist of Japan’s Infinity LLC, said that the United States’ tariff measures are completely unjustified. It isolated America from the world economy.
- Kenya is also showcasing its creative economy to the world. The president is pushing for support in film, fashion, music and digital content. Talents are finally getting attention at the highest levels.
Conclusion and disclaimer
The content on MarkShala.com is intended for educational and informational purposes only. We specialize in writing blogs on financial planning, investment strategies, economic trends, and related topics. While we strive to provide accurate and reliable information, the content should not be taken as professional financial, investment, or legal advice.
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