Sovereign Outlook 2026: Rising Geopolitical Tensions and Fiscal Headwinds

*Till December 12, 2025. Ukraine is currently assigned no rating outlook in selective default. Outlooks on long-term issuer ratings are displayed in foreign currencies. Source: Scope Ratings.Rating risks erode potential for strong economic growth, fiscal flexibility The significant geopolitical and fiscal risks outweigh the potential positive effects of strong growth and emerging areas of fiscal…

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Global Economic Outlook 2026: Financial System Risk; Trade, Public Debt, Geopolitical Uncertainties

financial-system risks driven by elevated valuations across many asset classes and long-held expectations of a recovery in rising markets; Leveraging risks in the non-bank financial intermediation sector, including private credit, exposures in the less-regulated artificial intelligence and cryptocurrency sectors; high borrowing rates for long periods of time; and US and global financial regulation. The protectionist…

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What’s the Final Economic Impact of the Record US Government Shutdown?

The short-term shutdown has limited economic effects, but could leave a more lasting impact due to its record length. The Congressional Budget Office recently estimated that approximately US$11 billion of economic activity could be permanently lost. Shutdown has increased economic challenges The shutdown has exacerbated economic challenges such as sluggish hiring and persistently elevated inflation….

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What’s the Outlook for US-China Relations After the One-year Trading Truce?

Because many U.S. industries are heavily dependent on the China-dominated rare-earth value chain, Beijing has the wherewithal to extract meaningful concessions during trade disputes. China’s approach could prove helpful to major trading blocs in managing their interactions with the Trump government. New trade tensions are very likely to emerge Many details of the US-China deal…

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US Government Shutdown Reflects Deepening Political Polarisation

Similarly, legal professionals and firms are considered unfavorable for the policy purposes of President Donald Trump, subjected to public pressure, while concerns have also come to light around the fairness of economic data after the dismissal of Erica McAinterfare, former Commissioner of Labor Statistics Bureau, Erica McAntarfer. Extensive challenges emerge Increased criticism of educational institutions…

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Ukrainian Debt Sustainability Challenges Remain Heightened as New IMF Programme Talks Accelerate

NB Scope and IMF estimates are for public and publicly guaranteed loan stock of Ukraine including ERA loans. June -2024 IMF estimates made before Eurobond loan restructuring. Source: IMF, Scope Rating.Finding the financing gap represents a historical challenge – especially to the European Union Ukraine funding represents a historical challenge, given the IMF estimates that…

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Germany: Ambitious 2025-26 Spending Plans Likely Delayed, Weighing on Near-term Growth

Source: Deutsche finanzagentur, scope ratingInvestment expenses need to be targeted, to overcome time and complementary economic capacity It will be important to ensure that investments under special infrastructure funds do not convert the cost of investment from regular, core budget. To end this, the Special Fund law requires the share of investment in the main…

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