Global economic developments unfolded across multiple regions on Friday, with US banks altering their support strategy for Argentina, Japan unveiling a sweeping stimulus package, OpenAI expanding its AI infrastructure footprint through a new partnership with Foxconn, and Singapore raising its 2025 economic outlook on stronger-than-expected growth.
US banks scale back Argentina support package
JPMorgan Chase, Bank of America, and Citigroup have pulled back from a previously discussed $20 billion financial support package for Argentina, according to the Wall Street Journal, citing people familiar with the matter.
Instead of the larger program, the banks now plan to extend smaller, short-term loans designed to help stabilize the country’s fragile economy.
Under the revised plan, the institutions would offer around $5 billion through a short-term repurchase, or “repo,” facility.
The mechanism requires Buenos Aires to exchange investment portfolio assets for dollars, with the expectation that Argentina would later tap bond and equity markets to repay the facility.
The report said the original $20 billion plan was abandoned due to concerns over financial exposure.
The restructuring comes after the US Treasury announced a currency swap agreement with Argentina in October, following a meeting between US President Donald Trump and Argentine President Javier Milei.
Japan approves $135bn stimulus package to support economy
Japan’s cabinet has approved a ¥21.3 trillion ($135.5 billion) stimulus package aimed at boosting growth, reducing cost-of-living pressures, and expanding defense and diplomatic capabilities.
The program marks Prime Minister Sanae Takaichi’s first major policy initiative since taking office seven weeks ago.
NHK reported the plan focuses on three pillars: curbing rising prices, strengthening the economy, and enhancing national security.
Measures include expanded local grants and new electricity and gas subsidies that will provide roughly ¥7,000 per household over three months starting January.
Gasoline taxes will also be eliminated.
The package includes ¥2.7tn in tax cuts and will be backed by a supplementary budget expected to be 27% larger than last year’s.
Funding will come from special accounts and additional government bond issuance.
Japan will also establish a 10-year fund to bolster shipbuilding capabilities and reaffirm its goal of raising defense spending to 2% of GDP by fiscal 2027.
The yen firmed slightly after the announcement, and long-term Japanese government bond yields eased from multiyear highs.
OpenAI partners with Foxconn to build US AI hardware
OpenAI announced a new partnership with Foxconn to co-develop and manufacture AI data center components in the United States.
The companies will collaborate on multiple generations of AI servers while Foxconn produces key systems — including power, cooling, and networking components — at its US-based facilities.
OpenAI will have early access to evaluate the hardware and the option to purchase the systems as the company accelerates its massive infrastructure buildout. CEO Sam Altman described the collaboration as a “generational opportunity to reindustrialize America.”
OpenAI has recently revealed spending commitments of about $1.4 trillion, raising questions about profitability and long-term financing.
The company maintains cloud and compute partnerships with Microsoft, Google, Amazon, and Oracle, while Foxconn brings manufacturing capacity and experience in AI server assembly.
Singapore raises 2025 GDP forecast after strong Q3 growth
Singapore upgraded its 2025 economic growth forecast to around 4%, up from the previous 1.5%–2.5% range, citing resilience in global conditions and stronger demand for AI-related semiconductors.
The economy expanded 4.2% year-on-year in the third quarter, surpassing earlier estimates.
Growth was supported primarily by manufacturing, with electronics output rising 6.1% on higher demand for AI servers and chips.
However, the Ministry of Trade and Industry warned that 2026 growth is likely to slow to between 1% and 3% as US tariffs weigh on global demand.
Non-oil domestic exports fell 3.3% in Q3 but rebounded sharply by 22.2% in October, driven by non-monetary gold and electronic shipments.
Inflation remains subdued, and the Monetary Authority of Singapore is expected to keep policy unchanged in January amid steady growth momentum.
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