World Bank Cuts South Asia Growth Forecast Amid U.S. Tariffs on India

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the Asia

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Image Source: Bloomberg

The World Bank has sharply lowered its forecast for South Asia’s economic growth, citing the impact of U.S. trade measures on India and other regional challenges.

In its report released Tuesday, the Washington-based lender projected South Asia’s growth to slow to 5.8% in 2026, down from 6.6% this year—the region’s weakest pace in 25 years outside global recessions. The downgrade reflects weaker export prospects, rising foreign exchange pressures, and political instability in several economies.

“South Asia has enormous economic potential and remains the fastest-growing region globally,” said Johannes Zutt, World Bank vice president for South Asia. “But countries need to proactively address risks to growth.”

The report highlighted that India, the region’s largest economy, is expected to grow 6.5% in the current fiscal year ending March, supported by robust domestic demand. However, growth is projected to ease to 6.3% next year due to the fallout from new 50% U.S. tariffs on Indian exports—measures imposed by President Donald Trump to penalize New Delhi over trade barriers and Russian oil imports. The levies affect more than three-quarters of India’s shipments to the U.S., hitting labor-intensive sectors such as textiles and jewelry.

Elsewhere, Nepal’s growth is set to fall to 2.1% amid political unrest, while the Maldives faces debt repayment challenges tied to low reserves. Bangladesh is expected to rebound to 6.3% growth by fiscal 2026–27 as investment improves, and Sri Lanka continues to recover on the back of strong tourism and remittance inflows.

The World Bank warned that the region faces compounding risks from global volatility, artificial intelligence–driven labor disruptions, and fragile financial systems, which could heighten financing pressures across South Asia.

Global Markets Mixed as U.S. Shutdown Continues and Japan Sees Political Shift

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the Asia

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Image Credit: AP Photo/Julia Demaree Nikhinson

Wall Street looked set for modest gains on Monday as the U.S. government shutdown entered its second week, while markets in Japan and France reacted sharply to political upheavals.

Futures for the S&P 500 rose 0.3%, the Dow Jones Industrial Average gained 0.2%, and Nasdaq futures climbed 0.7%. Investors weighed the impact of limited economic data releases this week due to the shutdown, with earnings reports from Delta Air Lines, PepsiCo and Levi Strauss expected to draw attention. The Federal Reserve will still publish minutes from its most recent policy meeting.

Corporate news drove major stock movements before the opening bell. Fifth Third Bancorp announced a $10.9 billion all-stock acquisition of Comerica, creating the ninth-largest U.S. bank. Comerica shares surged nearly 11%, while Fifth Third fell almost 5%. Semiconductor giant Advanced Micro Devices soared more than 27% after unveiling a deal to supply chips to OpenAI for artificial intelligence infrastructure.

Overseas, political developments unsettled European markets. France’s CAC 40 dropped nearly 2% after Prime Minister Sébastien Lecornu resigned just one day after forming a government, deepening uncertainty in President Emmanuel Macron’s administration. Germany’s DAX edged up 0.3% while Britain’s FTSE 100 gained 0.2%.

In Japan, the Nikkei 225 jumped 4.8% to a record close after Sanae Takaichi, a conservative ally of the late Prime Minister Shinzo Abe, was chosen as leader of the ruling Liberal Democratic Party, paving the way for her to become Japan’s first female prime minister. The yen weakened as investors anticipated increased government spending. Defense stocks rallied, with Mitsubishi Heavy Industries climbing 11.1% and Kawasaki Heavy Industries rising 9.2%.

Elsewhere in Asia, Hong Kong’s Hang Seng index slipped 0.7%, while markets in China, Taiwan, and South Korea were closed for holidays.

In energy trading, U.S. crude rose 51 cents to $61.39 a barrel, while Brent crude added 59 cents to $65.12, following OPEC+’s decision to slightly boost production.

U.S. Government Shuts Down Amid Partisan Deadlock, Thousands of Federal Workers Furloughed

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

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Image Source: Christian Orozco, NBC News

The U.S. government officially shut down last night after Republicans and Democrats failed to reach a compromise on federal funding, marking the first shutdown since 2018. Lawmakers traded accusations and insults in the final hours, leaving the country without a fully funded government.

Republicans argued that Democrats could have prevented the shutdown by voting for a House-passed continuing resolution that would have funded operations through Nov. 21. Democrats countered that the measure failed to address a looming health care crisis, citing the need to extend Obamacare subsidies and reverse cuts to Medicaid from previous legislation.

The shutdown will affect millions of federal employees, who will not receive pay until Congress restores funding. The Congressional Budget Office estimates about 750,000 federal workers will be furloughed. Military service members are also impacted, and the White House has warned that some federal workers could face termination if the shutdown persists. Despite the shutdown, members of Congress continue to receive their salaries.

National parks and other public services will operate on a limited basis, according to contingency plans from the Department of the Interior. Federal agencies deemed essential will continue operations, though without pay, creating uncertainty and delays for many government functions.

The partisan standoff has drawn sharp criticism from Senate Democratic Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries, who blamed “erratic and unhinged” behavior from President Donald Trump for the impasse. Two unions have filed lawsuits challenging the administration’s threat to fire federal employees during the shutdown.

Meanwhile, Defense Secretary Pete Hegseth recently convened a high-profile military meeting at Quantico, Virginia, sparking political debate. While no major policy changes were announced, the event underscored the intersection of government operations, military leadership, and partisan politics amid the current funding crisis.

The duration of the shutdown remains uncertain, leaving federal employees, military personnel, and Americans reliant on government services in a state of uncertainty.