International News 27 February 2026
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Australia’s Business Investment Reaches Decade High in Q4 2025
Business investment in Australia climbed to its highest level in more than a decade in the fourth quarter of 2025, driven by strong spending on renewable energy projects and data centres. Data released by the Australian Bureau of Statistics (ABS) showed private capital expenditure rose 0.4% quarter-on-quarter to A$49.3 billion (US$35.12 billion) in the October–December period, surpassing market expectations for a flat result and marking the strongest level since early 2015. Investment in buildings and structures jumped 2.3%, supported by major outlays on battery storage, wind farms, and solar power projects, while spending on plant and machinery declined 1.7% after a sharp rise in the previous quarter. Forward-looking indicators also remain solid. Businesses now expect to invest A$199.3 billion in the fiscal year ending September 2026, up 4.3% from earlier estimates, while initial projections for FY2026/2027 stand at A$158.4 billion. The data reflects sustained optimism, particularly in energy transition and digital infrastructure sectors, reinforcing signs that Australia’s private sector remains expansionary despite global headwinds such as interest rate uncertainty and slowing growth among key trading partners.
Global Debt Hits Record $348 Trillion in 2025, Led by Government Borrowing
The Institute of International Finance (IIF) reported that global debt surged to a record US$348 trillion by the end of 2025, marking an increase of nearly $29 trillion over the year—the fastest annual rise since the pandemic. More than $10 trillion of the increase came from government borrowing, with the United States, China, and the euro area accounting for roughly three-quarters of the surge. The data highlights a structural shift in the global debt cycle, now increasingly driven by persistent fiscal deficits rather than household or corporate leverage. Although global debt-to-GDP edged down slightly to around 308% in 2025—mainly due to advanced economies—emerging markets saw their debt ratio climb to a record above 235% of GDP, reflecting rising vulnerabilities. Government debt reached approximately $106.7 trillion, up from $96.3 trillion in 2024, while non-financial corporate debt stood at $100.6 trillion and household debt rose moderately to $64.6 trillion. Advanced economies accounted for $231.7 trillion of total debt, with emerging markets at $116.6 trillion—both record highs. The IIF warned that a combination of fiscal expansion, accommodative monetary policy, and lighter regulation could fuel further debt accumulation in 2026, especially as refinancing pressures intensify. According to the International Monetary Fund (IMF), global growth is projected at 3.3% in 2026—stable but insufficient to significantly reduce debt burdens. Emerging markets face over $9 trillion in debt maturities this year, while advanced economies confront more than $20 trillion, leaving global balance sheets increasingly sensitive to interest rate shifts and investor confidence.
OPEC+ Weighs April Output Increase Amid Rising Geopolitical Tensions
OPEC+ is likely to consider raising oil production by 137,000 barrels per day (bpd) in April, according to sources familiar with the group’s deliberations. The potential move, to be discussed at the March 1 meeting involving eight key members—Saudi Arabia, Russia, United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria, and Oman—comes as the group prepares for peak summer demand and heightened geopolitical risks. Rising tensions between the United States and Iran have supported prices, with Brent crude trading near $71 per barrel, close to its seven-month high of $72.50 reached this week. Saudi Arabia has reportedly prepared contingency plans to boost short-term output and exports should potential U.S. military action against Iran disrupt Middle Eastern supply flows. The planned April increase would match the 137,000 bpd hikes implemented in October, November, and December last year. The eight producers had previously agreed to raise output by 2.9 million bpd from April to December 2025—about 3% of global demand—before pausing further increases from January to March 2026 due to seasonally weaker consumption. While concerns of oversupply persist, the output adjustment would allow leading producers such as Saudi Arabia and the UAE to regain market share as other members, including Russia and Iran, face Western sanctions and Kazakhstan recovers from production setbacks. However, one source indicated that maintaining the current production pause for April also remains a possibility.