China's economy grew 5 percent in the first quarter of 2026, surpassing analyst forecasts and offering a measure of near-term resilience against a deteriorating global backdrop. The result is notable given the headwinds accumulating across major trading partners and commodity markets. The Iran war is currently the principal source of external uncertainty, with its effects on global growth, energy prices, and trade flows still unresolved. How that conflict transmits into Chinese export demand, manufacturing inputs, and supply chains will shape whether Beijing can sustain this pace through the remainder of the year. Policymakers and investors will watch Q2 data closely for any deceleration, particularly in trade-exposed sectors. A durable 5 percent run rate would reinforce confidence in China's domestic demand story and reduce pressure on Beijing to deploy additional fiscal stimulus in the near term.
Pakistan's economy grew 3.7 percent in FY2026, its fastest rate in four years, according to the Pakistan Economic Survey presented by Finance Minister Muhammad Aurangzeb. Growth beat last year's 3.18 percent but missed the 4.2 percent target, with floods, regional conflict, and weaker food exports cited as key drags.
The Union government released an additional Rs 1,09,019 crore in tax devolution to states on August 1, 2026, separate from the regular monthly transfer. The lump-sum release aims to accelerate state capital spending in the July-September quarter, with Uttar Pradesh, Bihar, and Madhya Pradesh among the top recipients.
US mortgage rates have risen to a one-year high as markets weigh Federal Reserve rate uncertainty and Middle East conflict-driven inflation fears. Higher rates increase monthly payments for new buyers and are likely to further suppress housing market activity and refinancing.
Pakistan's Sensitive Price Index rose 13.52 percent year on year for the week ending July 2, 2026, marking 45 consecutive weeks of annual gains. Electricity up 49 percent, wheat flour up 68 percent, and LPG up 44 percent year on year are the main drivers.
