Five major shifts happened in the global economy in June. Almost none of them made the front page. This video roundup covers the five mechanisms that mattered most last month, and why each one is bigger than the coverage it received.
The headline story is the slow collapse of the aid economy. Foreign aid budgets across the major donor economies have been shrinking for years, but June made the direction unmistakable, and the countries that built public finances around those flows now face a gap that trade and remittances cannot quickly fill. Alongside it sits a quieter structural shift: China is steadily becoming a services economy, a transition that changes what it buys from the rest of the world and who its growth helps.
The roundup also covers the sovereign debt trap tightening around emerging markets, where refinancing costs are swallowing budgets faster than growth can replace them. Closer to home, India's jobs problem is hiding behind a strong GDP number, a gap between output growth and employment growth that a single headline figure conceals.
Finally, the video looks at why RBI rate cuts keep not landing. Policy rates have come down, but lending rates and credit conditions have not followed at the same pace, and the transmission gap is the difference between a rate cut on paper and a rate cut in the real economy. One month, five mechanisms worth understanding.
