• Fed Chair Jerome Powell emphasised the need to carefully weigh the risks of stubborn inflation against signs of a weakening labour market. He stressed that policy is “not on a preset course,” with rate decisions depending on incoming data.
• Vice Chair Michelle Bowman argued for faster, proactive cuts to protect the labour market, warning it is easier to support jobs now than to repair them later. In contrast, regional Fed presidents, including Austan Goolsbee, urged caution, given inflation remains above target.
• Powell acknowledged softening conditions, with job growth averaging just 25,000 over the past three months, below breakeven, but noted other indicators remain broadly stable. Unemployment sits at 4.3%, near full employment, though momentum is slowing.
• Inflation remains nearly a point above target, worsened by tariffs that lifted goods prices. Powell warned against easing too aggressively, which could reignite inflation, but also against keeping rates high for too long, which could needlessly damage the labour market.
• Powell’s remarks come amid Trump administration pressure to cut rates, including challenges to Fed independence. He defended past emergency interventions during crises, noting they likely prevented deeper economic damage, and stressed the importance of preserving public trust as his term nears its May end.

(Source: Reuters)

• Global growth is holding up better than expected, but the full brunt of the U.S. import tariff shock is still to be felt as AI investment props up U.S. activity for now and fiscal support cushions China's slowdown, the OECD said on Tuesday.
• In its latest Economic Outlook Interim Report, the Organisation for Economic Cooperation and Development (OECD) said the full impact of U.S. tariff hikes was still unfolding, with firms so far absorbing much of the shock through narrower margins and inventory buffers.
• Many firms stockpiled goods ahead of the Trump administration's tariff hikes, which lifted the effective U.S. rate on merchandise imports to an estimated 19.5% by end-August, the highest since 1933, in the depths of the Great Depression.
• Global economic growth is now expected to slow only slightly to 3.2% in 2025 from 3.3% last year — compared to the 2.9% the OECD had forecast in June. However, the Paris-based organisation kept its 2026 forecast at 2.9%, with the boost from inventory building already fading and higher tariffs expected to weigh on investment and trade growth.
• The OECD forecast U.S. economic growth would slow to 1.8% in 2025, up from the 1.6% it forecast in June, from 2.8% last year before easing to 1.5% in 2026, unchanged from the previous forecast. An AI investment boom, fiscal support and interest rate cuts by the Federal Reserve are expected to help offset the impact of the higher tariffs, a drop in net immigration and federal job cuts, the OECD said.
• In the euro zone, trade and geopolitical tensions were seen offsetting the boost from lower interest rates, the OECD said. The bloc's economy was seen growing 1.2% this year - revised up from 1.0% previously - and 1.0% in 2026 - down from 1.2% - as increased public spending in Germany lifts growth while belt-tightening weighs on France and Italy.
• With growth slowing, the OECD said it expects most major central banks to lower borrowing costs or keep policy loose over the coming year, as long as inflation pressures continue to ease.

(Source: Reuters)

• The Jamaica Business Development Corporation (JBDC) has ramped up efforts to drive the digital transformation of micro, small and medium-sized enterprises (MSMEs). At least 500 businesses are set to digitise one internal process this year under the European Union (EU)-funded ‘Digital Jamaica’ Project.
• The three-year initiative, launched in 2023, is managed by the Ministry of Industry, Investment and Commerce and aims to accelerate the adoption of digital solutions across the MSME sector. Targeted areas include e-payments, payroll, human resource systems, customer relationship management software, e-commerce, contracts, invoicing, and vendor management.
• JBDC Acting Chief Executive Officer, Harold Davis, underscored the programme’s role in equipping entrepreneurs with the requisite tools and competencies to navigate and succeed in an increasingly digital marketplace. Mr Davis noted that a survey at the start of the project revealed that only 32% of local MSMEs were comfortable using digital solutions, with the majority of engagement confined to social media platforms. “With the support of the EU, we embarked on the Digital Jamaica Project to move that needle, because it is essential if our MSMEs are to compete internationally and grow sustainably,” he added.
• Chantol Dormer, Manager for JBDC’s Project Management and Research Department, noted that while training remains central to the programme, the current phase is focused on helping MSMEs implement practical solutions to improve their operations.
• In its inaugural year (2024–2025), the Digital Jamaica Project surpassed expectations, training approximately 1,200 entrepreneurs islandwide, well above the initial target of 700. The broader objective is to equip 2,700 MSMEs with the tools and competencies for digitisation, digitalisation, and full digital transformation by 2026.

(Source: JIS)

• Guyana’s Ministry of Natural Resources announced on Monday that it has approved ExxonMobil’s Hammerhead project, a US$6.8Bn venture that will increase oil production capacity by 150,000 barrels per day (b/d).
• Oil from Hammerhead, discovered in the southwestern part of the Stabroek Block in 2018, will be produced using a very large crude carrier (VLCC) conversion-type floating production, storage, and offloading (FPSO) vessel to be built by MODEC. Production will be facilitated through 10 production wells and 8 injection wells. A total of 445 million barrels of oil is forecast to be produced, the Ministry said.
• In addition to lifting installed oil production capacity to 1.5 million b/d, the associated gas from Hammerhead will be transferred to the Gas-to-Energy (GtE) pipeline for delivery to shore. The gas from that project is expected to be used for power generation and the sale of natural gas liquids (NGL).
• The Ministry stated that the Hammerhead license offers improvements in several areas compared to previous licenses. Some of these include its alignment with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025; improved management of production levels and new conditions to cover off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the GtE pipeline.
• The Ministry expects the Hammerhead project to boost energy security, drive industrial growth, and create employment across various sectors as it joins a growing portfolio of developments that continue to position Guyana as a key player in the global energy landscape. It is expected to start up in the second quarter of 2029.

(Source: Oil Now Guyana)

• The Minister of Finance and Economy, Magín Díaz, highlighted that the Dominican Republic is enjoying solid and sustainable macroeconomic stability, supported by US$14Bn in international reserves and an estimated US$4.8Bn in foreign investment.
• Díaz noted that these strong fundamentals have helped to maintain a stable exchange rate, allowed access to financing on favourable terms, and continue to keep country risk at historic lows. The minister contrasted the country’s internal stability with global economic challenges, particularly U.S. trade and fiscal policies, which have slowed international growth.
• He pointed out that the U.S. economy is growing at half its historical pace and faces inflationary and debt pressures affecting emerging markets. Díaz also recalled that since 2001, the Dominican Republic has improved its sovereign debt issuance, moving from five-year bonds at 9% to terms of up to 40 years under better conditions, reflecting growing investor confidence.
• Díaz reaffirmed his commitment to Goal 2036, aimed at removing growth constraints and preparing the country for eventual OECD membership through concrete fiscal, institutional, and social reforms.

(Source: Dominican Today)

• Euro zone consumers have altered their consumption habits in anticipation of U.S. tariffs, moving away from American products and reducing discretionary spending, a study published by the European Central Bank on Monday found.
• Euro zone consumers, sitting on ample savings built up in the years since the pandemic, have been cautious in making purchases all year as uncertainty over tariffs kept key parts of the bloc's economy in limbo.
• The ECB found that around 26.0% of its survey respondents reported switching away from U.S. products. Around 16.0% indicated they have reduced their overall spending. "High-income households are more likely to switch away from U.S. goods, while lower-income households are more inclined to cut back their overall spending," the ECB said, adding that financial literacy also impacted these decisions.
• Nearly all of the spending cuts impacted discretionary items while spending on necessities remained largely unaffected, the ECB added. The central bank also added that some consumers have adjusted their inflation expectations upward, including for the longer term, suggesting that the perceived impact of tariffs on inflation may not be entirely transitory.

(Source: Reuters)

• Threats to the global economic order have come at a furious pace during President Donald Trump's first eight months in office – from a massive tariff shock to a battle for control of the Federal Reserve.
• However, the global economy has kept growing, stock prices have surged, and inflation fears remain muted.
• While many players worry that things could still unravel given the right spark, it is a far cry from the most dour predictions early in Trump's term, when recession odds soared, markets plummeted, and headlines even fretted over the cancellation of Christmas in a collapse of global trade.
• "The global economy continues to exhibit considerable resilience amid heightened policy and political uncertainty," BNP Paribas economists wrote recently, attributing it to "supportive financial conditions, robust household and corporate balance sheets, the promise of an AI-driven productivity boost, and lower energy prices, among other factors." While the landscape remains in flux, the accommodation shown by U.S. trading partners threatened with sky-high tariffs resulted in more modest levies that are being shared by exporters, importers and consumers in what economists feel has become a manageable distribution.
• Meanwhile, Trump's attempts to oust the Fed chair and fire one of its governors have so far failed, and financial markets appear willing to ignore the risk of rising White House influence over monetary policy until it happens.
• Indeed, the yield on the U.S. 10-year Treasury note has fallen from around 4.6% when Trump took office to around 4.1%. While that might reflect growth doubts, it is not what would happen if global investors were losing faith in the U.S., the Fed's independence or the long-term path of U.S. inflation. The Fed is now comfortable enough about meeting its inflation target that it cut its benchmark rate by 25 basis points this week.
• China's central bank kept a key interest rate unchanged due to resilient exports and a stock market rally, refraining from new stimulus. Meanwhile, the euro zone exceeded expectations, prompting the ECB to raise its 2025 GDP growth forecast to 1.2% from 0.9%.
• But the sense that the current benign situation is not built on firm foundations lingers. Early signs of the hit to exporters are being seen from Japan to Germany. Notably, BoJ Deputy Governor Ryozo Himino warned that tariff effects are taking time to surface and new U.S. policies may emerge.
• Others see investor complacency, with U.S. growth concentrated in AI-driven investment and high-end consumers, while housing is weak, hiring is low, and Trump’s policies could have long-term effects. Some investors warn that markets may not reflect underlying realities despite record highs.

(Source: Reuters)

• Blue Power Group Limited (BPOW) opened its 2025 financial year on a weaker footing, posting a steep 41.4% decline in earnings to J$28.42Mn for the three months ended July 31, 2025 (Q1 FY2025). Higher indirect costs and, to a lesser extent, softer revenues were the primary drivers of the falloff in profits.
• Revenues were broadly flat (-0.9%) at J$231.70Mn (down 0.9% YoY) compared to J$233.88Mn in Q1 FY2024. The sales mix continued to tilt towards value-priced bath and laundry soaps, constraining topline growth.
• Cost pressures intensified with direct costs rising by 11.1% YoY to J$153.83Mn, cutting gross profit by 18.4% YoY to J$77.87Mn. There was an accompanying compression in the gross profit margin to 33.6% from 40.8% in Q1 FY2024. Higher raw material costs, amplified by 40.0% CET on essential imports under CARICOM trade rules, helped to compress gross margins.
• Operating expenses surged, exacerbating the impact of higher production costs. Administrative and other costs increased by 30.5% YoY to J$68.30Mn, further eroding profitability. This outweighed gains from other income (J$5.09Mn vs J$2.93Mn) and limited impairment charges, resulting in operating profit plunging 65.5% YoY to J$15.73Mn.
• That said, non-operating items offered some cushion. Finance income jumped 50.8% to J$12.32Mn, while the share of profit from its associate Lumber Depot Limited contributed J$6.24Mn (down from J$7.44Mn). However, after taxation of J$5.32Mn (vs J$11.49Mn), net profit landed at J$28.42Mn, well below the prior year’s outturn.
• Management remains optimistic, noting that Blue Power continues to lead the local bar soap market and is pushing into premium bath soaps with skincare and beauty features as part of its product innovation strategy.
• BPOW’s stock price has declined by 16.9% year-to-date, closing at $3.98 as at Thursday. At this price, the stock is trading at a P/E ratio of 19.9x, which is above the Junior Market Manufacturing Sector average of 20.99x.

(Sources: Blue Power Group Ltd. Financial Statements & NCBCM Research)

• ExxonMobil Guyana continues to deepen its commitment to local content and workforce development, investing heavily in Guyanese businesses, training, and industrial capacity. Since beginning operations in 2015, ExxonMobil and its contractors have spent over US$2.9Bn with local businesses. In the first half of 2025 alone, US$419Mn (approximately GY$87Bn) was directed to 1,800 Guyanese vendors, demonstrating a strong focus on supporting local industry.
• This year also marked a milestone with the launch of in-country fabrication at the Vreed-en-Hoop Shore Base Inc. (VEHSI), including the production of quad joints and Pipeline End Terminations (PLETs), a step that enhances Guyana’s industrial capabilities.
• As at mid-2025, the company and its contractors employ more than 6,200 Guyanese, representing 70% of the oil-and-gas workforce. Women make up one-third of employees, and 1,800 Guyanese are working offshore. In addition, the workforce has received over 370,000 hours of training in leadership, technical skills, professional development, and health, safety, and security protocols.
• Alistair Routledge, President of ExxonMobil Guyana, noted, “We are proud of the progress we’ve made in building local talent. Seeing more Guyanese take on key roles in the oil-and-gas industry is a clear sign that our commitment to capacity building is working.” Looking ahead, the Guyana Technical Training College Inc. (GTTCI), supported financially by ExxonMobil, the Stabroek Block co-venturers, and the government, will welcome its first cohort of locally trained students in October 2025, a landmark in technical education.
• ExxonMobil’s internship programme is also yielding tangible results. Of the inaugural class, five interns have already joined the company, while the 2025 programme continues to provide young Guyanese with meaningful opportunities in the oil-and-gas sector. These initiatives reflect ExxonMobil Guyana’s ongoing effort to foster local expertise, strengthen the domestic workforce, and contribute to the sustainable growth of Guyana’s oil-and-gas industry.

(Source: Guyana Chronicle)

• The cooperation between Suriname and the World Bank has been given a new impetus, with a special focus on the water, energy and mining sectors. Minister David Abiamofo of Natural Resources (NH) received a delegation led by Diletta Doretti, Country Representative for Guyana and Suriname.
• During the meeting, Abiamofo gave an overview of the current programs and challenges within his ministry. Among other things, he pointed to the urgent replacement of the outdated drinking water distribution network in Paramaribo and the implementation of projects such as EMSAGS (Emphasis on Artisanal and Small-Scale Gold Mining) and GEFGOLD (Global Environment Facility), which focus on the formalisation of small-scale gold mining and the phasing out of mercury.
• Cooperation with international partners was also discussed. For example, Suriname is working with the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB) and the United Nations Development Programme (UNDP), which implements the JET-JP programme, among others, to develop financing-ready plans for a just energy transition domestically.
• An important agenda item was the Suriname Competitiveness and Sector Diversification (SCSD) Project. This project finances the strengthening of governance, transparency and administration in the mining sector, including the establishment of the Minerals Authority Suriname (DAS).
• Additionally, Suriname and the World Bank took another important step in their development cooperation earlier this year. The Suriname Preparedness and Enhancing Resilient Communities Project were approved by the World Bank’s Board of Executive Directors in late February. Aimed at strengthening Suriname’s resilience to disasters, the US$22.2Mn initiative is the first to be financed by the International Development Association (IDA), since the country joined this World Bank institution in October 2024.

(Sources: Suriname Herald & the World Bank)