Global Economy News Highlights on April 17, 2026
1. Inflationary Pressures and Rate Hike Trajectory in Japan: A survey conducted from April 7 to 14 showed that around 65% of experts believe that the Bank of Japan (BoJ) will raise its benchmark rate to 1% by the end of June 2026, as inflation remains above its target. The pressure for monetary policy tightening is growing, with the yen depreciating approximately 2% against the US dollar since the beginning of the conflict in the Middle East. This could lead the BoJ to raise its interest rates to 1.5% in 2027. Despite a significant drop in projected growth in the second quarter to 0.4%, policymakers prioritize price stability to keep interest rates below the current neutral level of 0.75%.
2. South Korea Aims to Become a Global AI Hub: The South Korean Minister of Finance, Koo Yun Cheol, reiterated the country’s commitment to becoming a global center for artificial intelligence (AI) by attracting international organizations such as the World Bank and the Asian Development Bank to establish AI centers. South Korea plans to focus on areas like high-bandwidth memory chips, sensor chips, and small-scale AI language models for applications in shipbuilding and automotive industries to maintain a competitive edge over the United States.
3. G7 Prefers to Intervene to Alleviate Middle East Conflict: Finance ministers and central bank governors of the G7 have pledged to implement urgent intervention measures to limit global economic losses due to the ongoing conflict in the Middle East. The group is considering regulating the market, including blocking oil from strategic reserves following recent developments in the region.
4. The US Dollar Declines for the Second Consecutive Week: The US dollar index fell to 98.212 points on April 17, marking its second consecutive week of decline as investors shift away from safe-haven assets. Improved prospects for a US-Iran meeting have allowed several currencies to recover losses, with the Australian dollar hovering near a four-year high.
5. Aluminum Prices Reach Historic Highs Due to Supply Shortages: Global aluminum prices have surged by 15% since late February 2026, driving the LMEX metals index to record levels due to severe supply disruptions in the Middle East. The industry is facing unprecedented shortages, impacting non-ferrous metal markets globally.
6. Europe Faces Aviation Fuel Shortage: The International Energy Agency warns that European aviation fuel reserves are depleting rapidly due to disruptions in air traffic in the Strait of Hormuz caused by the Iranian conflict. Major airlines like Lufthansa and SAS have started reducing capacity and canceling flights.
7. IMF Urges ECB to Raise Interest Rates to Control Inflation: The International Monetary Fund recommends that the European Central Bank (ECB) implement two major interest rate hikes in 2026 to curb the energy inflation surge caused by the Strait of Hormuz closure.
8. AI Sector Faces Infrastructure Shortages: The rapid growth of AI players has led to a resource frenzy, resulting in a global shortage of GPU rentals by up to 50%. This imbalance in supply and demand is forcing leading companies like OpenAI and Anthropic to adjust their projects and usage.
Source: baotintuc.vn
