China’s 2025 GDP print landed at 5.0 %, squeaking past Beijing’s own target and soothing markets rattled by Trump-era tariff hikes. Yet the victory is pyrrhic: exports propped up half the expansion while retail sales rose a meagre 0.9 % and new construction starts plunged 20 %, exposing a recovery glued together by external demand and tactical stimulus. (investing.com)

History rhymes. Japan’s “export-led mirage” of the late 1980s kept headlines bullish even as demographics and property bubbles hollowed its core; China’s 3 million population drop last year and a fourth straight property slump echo that cautionary tale. Unless households—not shipyards—drive growth, today’s resilience risks hardening into 1990-style stagnation. (aljazeera.com)

Investors chasing the China reopening narrative should heed Dani Rodrik’s warning that “economies can’t forever outrun their institutions.” Policy that redirects capital toward domestic consumption and social safety nets, rather than ever-larger industrial surpluses, will decide whether 5 % is a floor or a ceiling.

— The Gist AI Editor

China’s Mixed Economic Signals

China has reported strong economic growth, largely propelled by resilient exports (WSJ). However, a closer look reveals signs of a slowdown, with both investment and consumer spending moderating. This suggests that while external demand remains a key pillar for Beijing’s economy, internal drivers are losing steam. The dynamic underscores a vulnerability in relying on global markets, particularly as geopolitical tensions simmer and protectionist sentiments rise in key trading partners. For global businesses, this points to a more complex and potentially less predictable Chinese market ahead.

UK’s Tax Rebellion

A significant grassroots movement is unfolding in the UK, where over 1,000 pubs are refusing to serve Labour Party members in protest of planned tax hikes (WSJ). This unusual form of civil disobedience, also joined by some hairdressers, signals a deep-seated frustration with government fiscal policy among small business owners. It’s a stark reminder that state-led economic interventions can provoke a powerful backlash from the very entrepreneurs who drive local economies, challenging the notion that tax increases are a straightforward solution to funding public services.

Shifting Ambitions in Asia

South Korea is witnessing a notable shift in the career aspirations of its youth. Applications to medical schools have seen a 32.3% on-year decline, reaching a five-year low as students reconsider the traditional paths to success (The Straits Times). This trend away from STEM and medicine could have long-term implications for the country’s innovation pipeline and healthcare sector. Meanwhile, institutional investors like Franklin Templeton are increasingly bullish on India, citing structural reforms and capital investment as drivers for significant growth over the next decade, presenting a contrast in economic sentiment across the continent (Bloomberg).

Geopolitical Fault Lines

Tensions between the United States and its European allies are deepening under the Trump administration, with threats over Greenland pushing some European officials to consider a new security alliance without the U.S. (Politico.eu). This potential fracturing of the transatlantic relationship, which has been a cornerstone of global stability for decades, introduces significant uncertainty for international trade and security cooperation. The discussions around a “coalition of the willing” indicate a move towards a more fragmented and interest-driven global order.

Stay tuned for the next Gist—your edge in a shifting world.

Pub Owners Turn Against Government in Britain’s Latest Rebellion
— Wall Street Journal

China Reports Robust Economic Growth, Thanks to Resilient Exports
— Wall Street Journal

Recent studies suggest South Korean students are rethinking Seoul universities, STEM and medicine
— The Straits Times

Train Collision in Spain Kills at Least 21
— Wall Street Journal

Sphere Plans New Venue in Washington Area After Vegas Success
— Bloomberg

Tokyo Electric to Delay Niigata Nuclear Plant Restart, NHK Says
— Bloomberg

Italy’s PNRR Stalls

Rome’s implementation of the EU’s post-pandemic recovery plan, the PNRR (Piano Nazionale di Ripresa e Resilienza), is showing significant cracks. The government has failed to allocate funds for 10,000 PNRR-mandated judicial officials, according to Italy’s national magistrates’ association (Ansa). This isn’t mere administrative lag; it actively threatens a core goal of the multi-billion euro plan: streamlining Italy’s notoriously slow justice system. The paralysis is particularly acute in specialised sections dealing with international protection, jeopardising the EU’s common asylum system. The episode reveals the persistent gap between Brussels’ grand designs and the reality of national-level execution, where state capacity fails to deliver on its commitments.

The Davos Disconnect

As the global elite gather in Davos, a stark report from FGS Global underscores a chasm between them and the public. The study, polling nearly 20,000 people across 27 democracies, describes a “rewired world” defined by fragmentation and deep distrust (Politico). It finds that public pessimism has hit “crisis levels,” a sentiment echoed by other pre-Davos analyses highlighting “geoeconomic confrontation” as the top global risk for 2026. For leaders championing top-down solutions, this is a clear warning: the foundational trust required for broad economic cooperation is eroding. Navigating this fractured landscape requires abandoning old assumptions of a cohesive global order, a truth that may be hard to digest amidst the Alpine optimism.

Catch the next Gist for the continent’s moving pieces.

L’Anm all’Ue: gravi problemi per i processi in materia di asilo
— Ansa

Su ChatGpt arriva la pubblicità, test negli Usa
— Ansa

The Guardian view on microplastics research: questioning results is good for science, but has political consequences | Editorial
— The Guardian

Aktuelles zum Krieg in der Ukraine
— ZDF

Der Machtkampf um die Arktis in Karten
— ZDF

Spanien: Tote und Verletzte bei Zug-Entgleisung
— ZDF