The Specters Haunting the Global Economy

The BIS Report

“The soft landing for the global economy that was coming into view suddenly seems more elusive. Long-established trade relationships began to fray as a wave of larger than expected tariff announcements in early April hit the global economy. Growth forecasts were cut, and financial markets were jolted as policy uncertainty surged. Even as some of the initial shock has dissipated, a sense of apprehension hangs in the air. “ BIS Annual Economic Report 2025

As we enter the second half of the year, the recent “Annual Economic Report (https://www.bis.org/publ/arpdf/ar2025e_ov.htm) by the Bank for International Settlements presents a timely review of the challenges faced by the global economy.

The Bank for International Settlements (BIS, www.bis.org) is a less-known, but no less consequential, multilateral financial institution. The BIS is commonly known as the central bank of central banks. Established in 1930 to oversee the settlement of World War I reparations, its mission has expanded significantly “…to support central banks' pursuit of monetary and financial stability through international cooperation, and to act as a bank for central banks.” The BIS is owned by 63 central banks and it is a forum for monetary and financial research. The BIS is also houses a number of important committees and institutes, including the Basel Committee on Banking Supervision, the powerful global banking supervision body.