Malaysia, New Zealand Face Fiscal Pressure Amid Global Tariff Uncertainty

Multiple countries are facing significant fiscal challenges amid global economic uncertainties and trade tensions. Malaysia has made progress in reducing its fiscal deficit and stabilizing public debt, but risks from US tariffs and a global slowdown suggest the need for flexible and counter-cyclical fiscal policies to support vulnerable sectors. Pakistan struggles with a widening trade deficit, dependence on remittances potentially threatened by a new US tax proposal, and calls for strong reforms to broaden the tax base and attract investment. The US is grappling with fiscal policy debates surrounding a large tax cut bill that could increase deficits, compounded by a recent sovereign rating downgrade and ongoing tariff impacts on trade with China. New Zealand is adjusting its budget forecasts downward due to weaker economic growth, influenced by global turmoil and tariff effects, leading to delayed plans for an operating surplus. Across these contexts, governments are balancing fiscal discipline with the need to invest in social and economic resilience amid volatile global conditions.