Growth

• The European Central Bank (ECB) reported that corporate lending growth within the Euro zone has reached its highest level in three years. • This surge indicates a significant increase in borrowing activity by businesses across the region compared to previous periods. • The trend is critical as it reflects shifting economic conditions and the impact of the ECB's monetary policies on business investment.

• UK companies have reached their lowest level of optimism regarding growth this year, according to the latest CBI Growth Indicator. • The survey, conducted between May 26 and June 12, gathered data from 848 companies to assess business sentiment. • This downturn in confidence reflects growing economic uncertainty and challenges facing the UK corporate sector.

• India is accelerating its AI and innovation ecosystem through several key initiatives, including BHASHINI's expansion of multilingual AI capabilities and Sarvam AI receiving support from the IndiaAI mission. • Major global tech players are increasing their footprint in the region, highlighted by Meta's $900 million investment in the fintech platform CRED and Google's launch of a new AI incubator. • Other significant developments include gaming expansion efforts by Krafton and strategic activities involving APEDA to bolster the startup landscape.

• Andy Burnham has unveiled a long-term growth strategy for the UK centered on regional devolution, reindustrialisation, and the improvement of national living standards. • The plan emphasizes shifting power away from central government to empower regions to drive their own economic recovery and growth. • Senior Labour figures, including Housing Secretary Steve Reed and Deputy Leader Lucy Powell, have rejected calls for a general election to establish democratic legitimacy for these shifts.

• The Bank for International Settlements (BIS) has warned that a potential artificial intelligence (AI) bust is one of the most alarming threats to current global prosperity. • Along with an AI market correction, the BIS identified persistent inflation and fiscal stress as critical risks that could destabilize the global economy. • This warning highlights the danger of "ripple effects," where a collapse in AI growth could trigger broader credit instabilities and financial volatility.

• India is marking the 11th anniversary of the Digital India initiative, transitioning into a new phase focused on artificial intelligence and semiconductor manufacturing. • The government has approved 12 semiconductor projects with an investment pipeline of approximately ₹1.64 lakh crore, encompassing one fabrication unit, two compound fabrication units, and nine packaging units. • To ensure ethical growth, the government released AI Governance Guidelines in November 2025 to promote the development of "safe, inclusive and trustworthy" AI.

• Ram Singh, Director of the Delhi School of Economics, stated that the easing of conflict in West Asia has reduced the downside risks to India's 6.6% growth forecast. • Growth prospects may be further bolstered by the moderation of El Nino effects and the resolution of ongoing geopolitical uncertainties. • The operationalization of Free Trade Agreements (FTAs) with 37 countries is expected to drive economic expansion by boosting foreign direct investment (FDI) and exports.