Authored by Bradley Peak via BitcoinMagazine.com,

How much Bitcoin is left to mine?

Bitcoin’s total supply is hardcoded at 21 million BTC, a fixed upper limit that cannot be altered without a consensus-breaking change to the protocol. This finite cap is enforced at the protocol level and is central to Bitcoin’s value proposition as a deflationary asset.

As of May 2025, approximately 19.6 million Bitcoin have been mined, or about 93.3% of the total supply. That leaves roughly 1.4 million BTC yet to be created, and those remaining coins will be mined very slowly.

The reason for this uneven distribution is Bitcoin’s exponential issuance schedule, governed by an event called the halving. When Bitcoin launched in 2009, the block reward was 50 BTC. Every 210,000 blocks — or approximately every four years — that reward is cut in half. 

Because the early rewards were so large, over 87% of the total supply was mined by the end of 2020. Each subsequent halving sharply reduces the rate of new issuance, meaning it will take over a century to mine the remaining 6.7%.

According to current estimates, 99% of all Bitcoin will have been mined by 2035, but the final fraction — the last satoshis — won’t be produced until around the year 2140 due to the nature of geometric reward reduction.

This engineered scarcity, combined with an immutable supply cap, is what draws comparisons between Bitcoin and physical commodities like gold. But Bitcoin is even more predictable: Gold’s supply grows at around 1.7% annually, whereas Bitcoin’s issuance rate is transparently declining.

Did you know? Bitcoin’s supply curve is not terminal in the traditional sense. It follows an asymptotic trajectory — a kind of economic Zeno’s paradox — where rewards diminish indefinitely but never truly reach zero. Mining will continue until around 2140, by which point over 99.999% of the total 21 million BTC will have been issued.

Beyond the supply cap: How lost coins make Bitcoin scarcer than you think

While over 93% of Bitcoin’s total supply has been mined, that doesn’t mean it’s all available. A significant portion is permanently out of circulation, lost due to forgotten passwords, misplaced wallets, destroyed hard drives or early adopters who never touched their coins again.

Estimates from firms like Chainalysis and Glassnode suggest that between 3.0 million and 3.8 million BTC — roughly 14%-18% of the total supply — is likely gone for good. That includes high-profile dormant addresses like the one believed to belong to Satoshi Nakamoto, which alone holds over 1.1 million BTC.

This means Bitcoin’s true circulating supply may be closer to 16 million-17 million, not 21 million. And because Bitcoin is non-recoverable by design, any lost coins stay lost — permanently reducing supply over time.

Now compare that to gold. Around 85% of the world’s total gold supply has been mined — approximately 216,265 metric tons, according to the World Gold Council — but nearly all of it remains in circulation or held in vaults, jewelry, ETFs and central banks. Gold can be remelted and reused; Bitcoin cannot be resurrected once access is lost.

This distinction gives Bitcoin a kind of hardening scarcity, a supply that not only stops growing over time but quietly shrinks.

As Bitcoin matures, it’s entering a monetary phase similar to gold: low issuance, high holder concentration and increasing demand-side sensitivity. But Bitcoin takes it further; its supply cap is hard, its loss rate is permanent, and its distribution is publicly auditable.

This may lead to several outcomes:

• Increased price volatility as available supply becomes more limited and sensitive to market demand

• Higher long-term value concentration in the hands of those who remain active and secure in their key management

• A premium on liquidity, where actually spendable BTC trades at a higher effective value than dormant supply.

In extreme cases, this could produce a bifurcation between “circulating BTC” and “unreachable BTC,” with the former gaining greater economic significance, particularly in times of constrained exchange liquidity or macroeconomic stress.

What happens when Bitcoin is fully mined?

There’s a popular assumption that as Bitcoin’s block rewards shrink, the network’s security will eventually suffer. But in practice, the mining economy is far more adaptive — and much more resilient — than that.

Bitcoin’s mining incentives are governed by a self-correcting feedback loop: If mining becomes unprofitable, miners drop off the network, which in turn triggers a difficulty adjustment. Every 2,016 blocks (roughly every two weeks), the network recalibrates mining difficulty using a parameter known as nBits. The goal is to keep block times steady at around 10 minutes, regardless of how many miners are competing.

So, if Bitcoin’s price drops, or the reward becomes too small relative to operating costs, inefficient miners simply exit. This causes difficulty to fall, lowering the cost for those who remain. The result is a system that continually rebalances itself, aligning network participation with available incentives.

This mechanism has already been tested at scale. After China banned mining in mid-2021, Bitcoin’s global hashrate dropped by more than 50% in a matter of weeks. Yet the network continued to function without interruption, and within a few months, the hashrate fully recovered, as miners resumed operations in jurisdictions with lower energy costs and more favorable regulations.

Critically, the idea that lower rewards will inherently threaten network security overlooks how mining is tied to profit margins, not nominal BTC amounts. As long as the market price supports the cost of hash power — even at 0.78125 BTC per block (post-2028 halving) or lower — miners will continue to secure the network.

In other words, it’s not the absolute reward that matters, but whether mining remains profitable relative to costs. And thanks to Bitcoin’s built-in difficulty adjustment, it usually does.

Even a century from now, when the block reward approaches zero, the network will likely still be protected by whatever combination of fees, base incentives and infrastructure efficiency exists at that time. But that’s a distant concern. In the meantime, the current system — hashrate adjusts, difficulty rebalances, miners adapt — remains one of the most robust elements of Bitcoin’s design.

Did you know? On April 20, 2024, following the launch of the Runes protocol, Bitcoin miners earned over $80 million in transaction fees within a single day, surpassing the $26 million earned from block rewards. This marked the first time in Bitcoin’s history that transaction fees alone exceeded the block subsidy in daily miner revenue.

The future of Bitcoin mining: Energy consumption

It’s a common misconception that rising Bitcoin prices will drive endless energy use. In reality, mining is constrained by profitability, not price alone.

As block rewards shrink, miners are pushed toward thinner margins, and that means chasing the cheapest, cleanest energy available. Since China’s 2021 mining ban, hashrate has migrated to regions like North America and Northern Europe, where operators tap into surplus hydro, wind and underutilized grid energy.

According to the Cambridge Centre for Alternative Finance, between 52% and 59% of Bitcoin mining now runs on renewables or low-emission sources. 

Regulations are reinforcing this trend, with several jurisdictions offering incentives for clean-powered mining or penalizing fossil-fuel operations.

Moreover, the idea that higher BTC prices will always mean higher energy use misses how Bitcoin self-regulates: More miners raise difficulty, which compresses margins, capping energy expansion. 

Renewable-based mining brings its own challenges, but the dystopian future of endlessly expanding fossil-fueled hash power is increasingly unlikely.

By Remix News Staff

France’s state audit office, the Court of Auditors, has issued a stark warning regarding the country’s welfare spending, projecting an impending “liquidity crisis.”

The auditors’ report reviewed by Politico indicates that welfare expenditures are “out of control” and could leave France running out of money as early as 2027.

“We need to take back control. Over the past years, especially in 2023 and 2024, we have lost control of our public finances,” the court’s president, Pierre Moscovici, said in an interview with RTL.

The government forecasts a social budget deficit of €15.3 billion for 2024, expected to escalate to €22.1 billion in 2025. However, the Court of Auditors deems even this substantial projection overly optimistic, citing the government’s overestimation of economic growth and the impact of tax cuts.

Pierre Moscovici, president of the Court of Auditors, emphasized the urgency of the situation in an interview with RTL on Monday. “We need to take back control. In recent years, especially in 2023 and 2024, we have lost control of our public finances,” he stated.

However, what Politico and the court both do not mention is that tens of billions of this spending is going to France’s exploding immigrant population.

As France has noted, academics have put the costs of migrants in France at approximately €25 billion a year, with some having even higher estimates. However, many of those with a migration background have French citizenship, and these are not counted in such statistics.

France’s budget deficit has significantly expanded as of late, reaching 5.8 percent of GDP last year, far exceeding the European Union’s 3 percent ceiling.

Despite the French government’s deficit reduction pledges, the situation is not expected to improve substantially in the near term. The deficit is projected to decrease to only 5.4 percent by 2025, with the 3 percent target not anticipated until 2029.

Both the EU and the International Monetary Fund (IMF) have expressed concern over France’s escalating spending. Last week, the IMF advised France to curtail welfare spending and proceed with pension reform.

On Wednesday Reuters is reporting that the Gaza Humanitarian Foundation (GHF), the controversial US-backed aid organization whose distribution sites are protected by American mercenaries, has suspended its operations in Gaza “due to disorder.”

Gaza’s Government Media Office announced in a statement, “We confirm that the ‘Israeli’ occupation’s project to distribute aid in the so-called ‘buffer zones’ has failed miserably, according to field reports and according to what was announced by the Hebrew media as well.” Israel has rejected the charge, instead blaming unruly Palestinian masses, Hamas, and criminal gangs who have long looted aid stores in the Strip.

“Thousands of starving people, besieged by the occupation and cut off from food and medicine for about 90 days, rushed toward those areas in a tragic and painful scene, which ended with the storming of distribution centers and the seizure of food,” it added.

The very public fiasco and chaotic scene at one of the first distribution sites set up by the Gaza Humanitarian Foundation outside Rafah on Tuesday was subject of international outrage and condemnation, including by the UN. The GHF has come under scrutiny for lack of experience and a firm track record.

As we had detailed the American security firm lost control of starving crowds and quickly withdrew from the area as the security situation rapidly broke down, resulting in Palestinians seizing the aid amid mayhem, soon after which Israeli aircraft swooped down to help clear the area. 

Gunshots were heard, and there are reports the US contractors were using warning shots as crowd control, and amid the onrush. Below is a montage of footage in a Reuters report:

GHF had only begun distributing aid since Monday. Israeli media reviews that “While technically an American company, GHF was established earlier this year in close coordination with Israeli authorities who felt existing aid distribution mechanisms led by the UN and other international organizations were insufficient in preventing the diversion of aid by Hamas.”

Hamas has reportedly threatened its operations, also amid US accusations that Hamas and other criminal groups had been routinely stealing and reselling international aid which entered the Strip previously throughout the war. The new plan was as follows:

Israel wanted to create a small number of distribution sites where pre-selected familial representatives would be able to pick up a heavy box full of food for their families in a zone secured and operated by American private contractors.

Emerging reports say at least one person was shot dead in these latest distribution efforts:

At least one civilian was killed and 48 wounded when Israeli troops opened fire on a crowd of Palestinians, after the group chosen by Israel to ship food into Gaza lost control of its distribution center, health officials reported.

Witnesses said Israeli forces started shooting after crowds of Palestinians broke through the fences on Tuesday around the distribution site, as an Israeli military helicopter fired flares and bursts of gunfire were heard in the distance. In one video, a large crowd of panicked civilians, including women and children, can be seen running away from the distribution site, trampling the fencing.

Below: several Middle East publications have slammed the Israeli/US-backed aid scheme as “dehumanization by design”:

‘Dehumanisation by design’: US-Israeli Gaza aid operation descends into chaoshttps://t.co/JK04rKebVr

— Middle East Eye (@MiddleEastEye) May 28, 2025

But amid looming famine, it appears that once word gets out, there is a rush toward the location. Whatever site is set up becomes a big target for mayhem (or worse, potential armed attacks), and likely it doesn’t help that it’s well understood that US mercenaries are guarding the centers.

S&P futures are marginally higher on the day, reversing an earlier loss driven by modestly higher yields after Japan’s 40-year auction sale Wednesday was met with the weakest demand since July, even if it was far more solid than last week’s 20Y yearh JGB auction. As of 8:00am ET, S&P futures are up 0.1% after the index jumped 2% in the previous session; Nasdaq futures rise 0.2%. Premarket, with NVDA rising 1% ahead of tonight’s earnings; the balance of Mag7 names are seeing slight weakness and Defensives are outperforming Cyclicals. Europe’s Estoxx 50 trades slightly lower with losses led by health care and consumer staples sectors. European stocks dropped 0.3% with losses led by health care and consumer staples sectors, while Asian markets were steady as weakness in Chinese tech firms tempered gains in semiconductor shares. The 10Y yield is flat, erasing some modest earlier gains with a weaker JGB auction being credited for weakness in the global bond market. USD is flat helping commodities catch a bid where Energy and Precious Metals are pushing the group higher. Today’s macro data focus will be on Fed Minutes and the 5Y bond auction; but today is only about NVDA and then near-term market direction. 

In premarket trading, Magnificent Seven stocks are mixed: Nvidia +0.6% ahead of earnings with the other six mostly in the green (Alphabet +0.3%, Apple +0.3%, Tesla +0.5%, Amazon +0.09%, Microsoft -0.08%, Meta Platforms is flat). Booz Allen slips 2% as Goldman Sachs cut its rating to sell, citing limited revenue and earnings growth in the medium term as federal civilian agency budgets are under pressure. Okta (OKTA) slumps 10% after the cybersecurity company gave a weaker-than-expected outlook. Here are some other notable premarket movers:

• Box (BOX) jumps 10% after the software company raised its full-year forecast. Analysts highlight billings as an area of particular strength.
• Elevance Health (ELV) jumps 6% after the health insurer reaffirmed its adjusted profit forecast for the full year ahead of an investors’ meeting.
• Galaxy Digital (GLXY) falls 9% after the crypto company reported an underwritten offering of 29 million shares.
• GameStop (GME) gains 4% after announcing the purchase of 4,710 Bitcoin tokens. This is the video-game seller’s first Bitcoin purchase after it announced in March that it plans to add the cryptocurrency as a treasury reserve asset
• Joby Aviation Inc. (JOBY) gains 9% after the announcement that Toyota Motor Corp. had invested $250 million in the air taxi maker, completing the first half of a previously announced $500 million commitment.
• Macy’s Inc. rises about 2% after posting better-than-expected quarterly results — a sign the department-store operator’s strategy of focusing on its best-performing locations is starting to pay off.
• Vail Resorts (MTN) jumps 12% after the operator of ski resorts said it reappointed Rob Katz as CEO, succeeding Kirsten Lynch, who has stepped down from the role.

Today we get what may be the most important earnings report this quarter, when AI-vanguard Nvidia reports earnings after the close. In a year in which Trump’s tariff war has spurred significant market volatility, there’s high anticipation around the AI-bellwether’s earnings; the chipmaker’s blistering multi-year rally has already faced scrutiny over whether massive investment in AI is justified and as its products have gotten caught up in US-China trade acrimony.

“Nvidia earnings are going to be really significant,” said Justin Onuekwusi, chief investment officer at St James’s Place in London. “The fact that macro investors now look at Nvidia as an event shows just how big that company has become.”

Good results from Nvidia could unleash some of the $7 trillion parked in cash and spur stocks higher. But the setup is challenging, with Nvidia close to overbought territory and possible complications in the numbers.

Besides Nvidia, all eyes were on today’s ultra long-dated 40Y auction in Japan, which drew the weakest demand since July but was stronger than last week’s catastrophic 20Y auction. Japan’s 30-year yield jumped 10 basis points following the auction. The poor reception sent Japanese longer-dated bonds sliding on Wednesday, prompting similar moves in US and European fixed income markets. US Treasuries of the same maturity snapped three days of gains, with the yield rising three basis points to 4.98%, before erasing the move. UK and German 30-year borrowing costs also climbed 3 bps, but the move was largely reversed.

As the turnaround in stocks from April’s lows shows signs of stalling, investor exposure to equities remains low enough that the “path of least resistance” is higher, according to strategists at Barclays. Institutional investors weren’t a big part of the stock rebound in May, with positioning remaining broadly underweight. Absent a volatility shock, “systematic buying could continue to help equities to grind higher,” the team led by Emmanuel Cau wrote in a note.

“Unless fundamental concerns about further yield increases — driven by supply-demand imbalances and expectations for fiscal expansion — are resolved, this is not the right timing to engage in outright purchases or flattener trades,” said Miki Den, a senior rates strategist at SMBC Nikko Securities in Tokyo.

In Europe, the Stoxx 600 falls 0.3% with underperformance seen in health care, retail and technology names. Here are the most notable European movers:

• Stellantis gains as much as 1% in Milan after the carmaker says Antonio Filosa, current Chief Operating Officer for the Americas, will assume CEO functions on June 23, according to a statement.
• Tenaris shares rise as much as 5.5%, the most in over a month, after the Italian steel firm approved a share buyback program for as much as $1.2 billion.
• Softcat rises as much as 4.4%, hitting the highest since March 2022, after releasing a short statement in which the UK IT reseller says it delivered double-digit year-on-year growth in gross profit and operating profit in the third quarter.
• Elekta gains as much as 6%, the most since April 10, after the Swedish medical-equipment firm’s earnings showed improved margins.
• Rentokil shares rise as much as 2.2% to a three-week high, after the support-services company agreed to offload its Workwear business in France, which analysts at Jefferies said is a “positive catalyst for the shares”.
• Pets at Home shares gained as much as 3.4% to a six-month high after the retailer posted FY25 figures in line with guidance while raising its annual dividend and launching a new buyback.
• Northern Data shares rise as much as 12% after the Frankfurt-listed technology and crypto firm said in a statement on Wednesday that it had received strategic interest for its Taiga Cloud and Ardent divisions.
• L’Oreal falls as much as 2.1% after JPMorgan (underweight) put the cosmetics stock on “negative catalyst watch” ahead of 2Q results, saying sales may disappoint.
• Kingfisher shares drop as much as 5.4%, the most in two months, after the DIY retailer left investors disappointed by not upgrading its annual profit guidance, according to analysts, despite better weather in the UK helping like-for-like sales to come in ahead of expectations in the first quarter.
• Greggs shares fall as much as 5.3%, before paring some losses. Shore downgrades the stock to hold from buy, as the broker resets its forecasts to align with the food-on-the-go retailer’s more modest growth expectations.
• Soitec shares plunge as much as 26% after the company withdrew its guidance for 2026 and its medium-term revenue and Ebitda margin targets, citing reduced visibility and market uncertainties.
• Galderma shares drop as much as 3.4% as some shareholders look to sell an 8% stake in the Swiss skincare giant. Vontobel says that as these exit, some overhang could build up.

Earlier in the session, Asian equities were steady as weakness in Chinese tech firms tempered gains in semiconductor shares. The MSCI Asia Pacific Index was little changed after rising as much as 0.6%. Samsung Electronics, SK Hynix and TSMC gained ahead of Nvidia’s earnings after the US close on Wednesday. Shares of Tencent Holdings and Alibaba were the biggest drags on the regional gauge. “We expect choppy markets over the summer, as several risk events are on the calendar,” Chetan Seth, Asia strategist at Nomura Holdings, wrote in a note. The brokerage sees “limited upside” for Asia ex-Japan equities but slightly raised MSCI Asia ex-Japan end-2025 target to 772 from 754. While a weaker dollar and President Donald Trump’s policies have bolstered inflows into the region, Asian economies still face the prospects of high tariffs if individual countries fail to secure a trade deal with the US. Persistent worries over a slowdown in the world’s largest economy also weigh on sentiment. 

In FX, the Bloomberg Dollar Spot Index falls 0.1% trading close to its lowest levels since 2023. The currency has slumped more than 7% this year on the back of a retreat from US assets. The kiwi is the best performing G-10 currency, rising 0.4% against the greenback after the RBNZ signaled interest rates are now close to neutral.

In rates, treasuries are cheaper across the curve, with losses led by the long-end following similar price action across core European rates, leaving 2s10s around session highs leading into the early US session. Long-end remains in focus, after Japan’s 40-year auction sale Wednesday was met with the weakest demand since July. US yields are cheaper by up to 2bp across long-end of the curve with 5s30s spread steeper by around 1bp on the day, unwinding a portion of Tuesday’s flattening move. US 10-year yields trade flat around 4.45%, reversing an earlier rise of 3bps,  with gilts lagging by almost 2bp in the sector, weighing on Treasuries. US session includes 5-year note sale at 1pm New York, following Tuesday’s solid $69 billion 2-year auction. The WI 2-year at ~3.965% is ~17bp cheaper than the April stop-out, which tailed the WI by 0.6bp.

In commodities, WTI rises 0.6% to $61.20 a barrel ahead of an OPEC+ committee meeting to review production quotes later on Wednesday. Spot gold climbs $20 to around $3,322/oz. Bitcoin falls 0.8% and below $109,000.

Looking at the US economic calendar, we get the May Richmond Fed manufacturing index (10am) and Dallas Fed services activity (10:30am). Fed speaker slate empty for the session. FOMC meeting minutes from May 7 are released at 2pm.

Market Snapshot

• S&P 500 mini 0.1%
• Nasdaq 100 mini 0.2%
• Russell 2000 mini -0.2%
• Stoxx Europe 600 -0.3%
• DAX -0.3%
• CAC 40 -0.2%
• 10-year Treasury yield +3 basis points at 4.47%
• VIX +0.4 points at 19.33
• Bloomberg Dollar Index little changed at 1216.3
• euro little changed at $1.1338
• WTI crude +0.6% at $61.23/barrel

Top Overnight News

• Elon Musk expressed dissatisfaction with Trump’s tax bill, telling CBS it undercut his efforts to slash government spending. BBG
• Trump posted that he told Canada, which wants to be part of the Golden Dome System, it will cost USD 61bln if they remain a separate nation, but will cost zero if they become our 51st State, while he added “They are considering the offer!”
• FHFA head Pulte posted on X that Fed Chair Powell should lower interest rates now.
• Trump posted that he is working on taking Fannie Mae and Freddie Mac public but wants to be clear that the government will keep its implicit guarantees.
• China’s Huawei pushes for the creation of a domestic chemical firm capable of cutting Western suppliers (like Shin-Etsu, DuPont, and Dow) out of its supply chain as part of a broader initiative to increase technological self-sufficiency. Nikkei
• China plans to open its commodities markets further by letting foreign investors use FX as collateral for yuan trades. The move aims to boost its pricing power and promote the currency globally. BBG
• Investor appetite for long-term Japanese government bonds remained sluggish on Wed, with yields on sovereign bonds rising amid persistently soft demand. At an auction for 40y JGBs held Wed, the bid to cover ratio, which measures demand, fell to 2.21, the lowest since July 2024. Nikkei
• Japan’s MOF (Ministry of Finance) will hold a meeting on June 20 with JGB primary dealers amid speculation the gov’t could dial back ultra-long issuance to reduce upward pressure on yields. Nikkei
• India has offered “deep” cuts to its important tariffs on a swath of goods in talks with the US, but is seeking to retain its high levies on sensitive agricultural commodities. FT
• Eurozone inflation expectations over 12 months rose 20bp to +3.1% (the highest level since Feb ’24) and were unchanged over 36 months (at +2.5%) and unchanged over 60 months (at +2.1%). ECB
• Israel considers whether to proceed with a strike against Iran’s nuclear facilities, leading to increased tensions between Netanyahu and Trump. NYT
• Fed minutes from the May 6–7 meeting may show rising concern over inflation and unemployment risks and reflect policymakers’ wait-and-see approach. BBG
• Fed’s Williams (voter) said inflation expectations are well anchored and he wants to avoid inflation becoming highly persistent as that could become permanent, while he added that a way to avoid that is to respond relatively strongly when inflation begins to deviate from target and noted they have to be very aware that inflation expectations could shift in ways that could be detrimental.

Tariffs/Trade

• Japan is said to propose buying US-made semiconductor chips as part of US trade talks.
• Mexico’s Agricultural Ministry said Mexico and the US agreed on measures targeted at reopening Mexican cattle exports to the US and the USDA mission is to travel to Mexico in the coming days.
• Brazil’s government decided to renew trade defence measures in the steel sector with Brazil’s trade body maintaining a 25% tariff on 19 steel products and extended the measure to four other products, while renewed tariffs on steel products are valid for 12 months.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly higher following the rally on Wall St where sentiment was underpinned by strong consumer confidence and as US participants took their first opportunity to react to President Trump’s tariff delay for the EU. ASX 200 lacked conviction after mixed data including firmer-than-expected CPI data and disappointing Construction Work. Nikkei 225 gapped higher at the open following the recent currency weakness and the drop in super-long JGB yields. Hang Seng and Shanghai Comp traded indecisively after mixed earnings releases and a lack of major fresh macro drivers.

Top Asian News

• RBNZ cut the OCR by 25bps to 3.25%, as expected, while it stated inflation is within the target band but core inflation is declining and that it is well placed to respond to domestic and international developments. RBNZ said both tariffs and policy uncertainties overseas are to moderate recovery, although conditions are consistent with inflation returning to the mid-point of the 1-3% target band over the medium term. In terms of the projections, it lowered its forecasts for the OCR across the projection horizon with the OCR seen at 3.12% in September 2025 (prev. 3.23%), 2.87% in June 2026 (prev. 3.1%) and 2.9% in September 2026 (prev. 3.1%). Furthermore, the minutes from the meeting stated the Committee discussed the options of keeping the OCR on hold at 3.50% or reducing it to 3.25% and the Committee noted that the full economic effects of cuts in the OCR since August 2024 are yet to be fully realised, while it also revealed that the decision to cut was made by a majority of 5 votes to 1.
• RBNZ Governor Hawkesby said the decision to hold a vote on rates was a healthy sign and not unusual at turning points, while he stated they did form a consensus projection for the cash rate, but added there is a high degree of uncertainty and central projections are wide enough for them to not have a bias either way in terms of what the next step is at the next meeting. Furthermore, he stated the key message is that they have come a long way and are well placed to respond to developments but are not pre-programmed on moves now.
• BoJ Governor Ueda said many tariff negotiations, including those between the US and Japan, are still ongoing, so the outlook remains uncertain and it remains unclear how tariff policies would affect the world and Japan’s economy Ueda said they will carefully examine data and will closely monitor the bond market, as well as be mindful that large swings in super long bond yields could impact other yields.

European bourses (STOXX 600 -0.2%) opened around the unchanged mark but sentiment has since slipped to display a mostly negative picture in Europe. Nothing specific for the recent downside, but perhaps as focus turns to FOMC Minutes and NVIDIA results thereafter. European sectors are mixed, in-fitting with the indecisive risk-tone. Real Estate leads, with UK homebuilders boosting the sectors amid reports that the UK Government will ease planning hurdles for small housebuilders. Retail posts very narrow losses, with pressure stemming from post-earning downside in Kingfisher (-2.9%). Fashion retailer Shein reportedly working towards a Hong Kong listing after London IPO plans stalled; will file prospectus in the coming weeks; plans to IPO within this year, according to Reuters sources.

Top European News

• ECB Consumer Expectations Survey (April): See inflation in next 12 months at 3.1% (prev. 2.9%); 3y ahead sees 2.5% (prev. 2.5%); Economic growth expectations for the next 12 months -1.9% (prev. -1.2%)
• ECB’s Lagarde has reportedly discussed stepping down as ECB President early in order to chair the WEF, via FT citing WEF founder Schwab. ECB spokesperson said ECB President Lagarde is determined to complete her term at the ECB.

FX

• DXY is marginally extending on Tuesday’s upside which was triggered by optimism on the trade front and a strong Consumer Confidence release. Newsflow has been light, but docket ahead will include US Richmond Fed Index, FOMC Minutes and NVIDIA results which could impact sentiment.
• Note, Citi’s month-end rebalancing model points to a net selling of USD vs. all of the major currencies with the strongest signals vs. JPY and GBP.
• EUR has seen a slight extension of losses vs. the USD after printing a MTD high on Monday at 1.1419. Focus remains on the trade front given the slew of headlines across recent sessions which has seen the EU seemingly increasing efforts to reach a deal with the US after President Trump threatened an escalation last week. The ECB Consumer Expectations Survey for April showed the 12-month ahead inflation expectation rise to 3.1% from 2.9% and the 12-month ahead growth forecast cut to -1.9% from -1.2%. EUR/USD briefly slipped onto a 1.12 handle with a session trough at 1.1296.
• JPY is fractionally firmer vs. the USD after a soft showing yesterday on account of a strong USD and declines in long-end Japanese yields after reports that Japan’s MoF could trim the issuance of super long debt. It’s worth noting that the 40yr JGB auction overnight was weak. Elsewhere, the latest reports note that Japan is said to propose buying US-made semiconductor chips as part of US trade talks. USD/JPY had ventured as high as 144.76 overnight but has since pulled back to levels closer to the 144 mark.
• GBP flat vs. the USD in what has been a week lacking in major updates from the UK and could well remain the case. BoE Chief Economist is due to speak at 16:00BST, however, the text release will be from a speech delivered on 22nd May. Cable is currently lingering just above the 1.35 mark after hitting a multi-year high on Monday at 1.3593.
• NZD is top of the G10 leaderboard post-RBNZ. As expected, the bank delivered a 25bps rate cut, however, the decision was subject to hawkish dissent from one member. Furthermore, whilst the bank lowered its OCR forecasts, ING notes that they don’t fully signal that rates will be trimmed to 2.75%.
• PBoC set USD/CNY mid-point at 7.1894 vs exp. 7.1996 (Prev. 7.1876).

Fixed Income

• JGBs pulled back at the start of APAC trade after the marked upside seen on Tuesday after reporting around the MOF. An acceleration of this occurred after the highly anticipated 40yr JGB auction. Overall, the outing was a disappointment, featuring an elevated yield and weak cover.
• USTs fell alongside JGBs after the 40yr auction results. Pressure which took USTs to a 110-07+ base and essentially eroded the strength seen after the US’ robust 2yr tap. The results of this helped to drive the complex to a 110-18 high. Ahead, the docket features a 5yr auction, FOMC Minutes, the latest executive order signing by POTUS and NVIDIA earnings.
• Bunds hit an overnight in tandem with JGBs. Since, have been a little choppy in a slim 130.73 to 131.00 band, which is just below Tuesday’s 130.75 base. Modest bounce on cooler-than-expected German import prices this morning, the series posted the largest M/M decline (-1.7%) since April 2020, driven primarily by energy prices. No significant move to the ECB SCE which saw a rise in 12-month inflation expectations and a cut in growth expectations. German auction had little impact on Bunds.
• Gilts opened lower by a handful of ticks, acknowledging the JGB auction. Action since has been slightly bearish, in-fitting with above peers, but minimal in nature as UK specifics have been largely non-existent.
• UK DMO announces the syndicated launch of a new I/L 2038 Gilt, to launch in the week of June 9th.
• Demand for Spain’s new 10yr syndicated bond exceeds EUR 105bln, according to the Lead Manager.
• Orders for the new BTP Italia reach EUR 4bln, via Reuters citing bourse data.
• UK sells GBP 2.75bln 0.875% 2033 Green Gilt: b/c 3.56x (prev. 3.1x), avg. yield 4.511% (prev. 4.473%) & tail 0.3bps (prev. 0.7bps)

Commodities

• Choppy trade once again in the crude complex as the clock ticks down to today’s JMMC and OPEC+ meetings; sources suggest 09:00ET or 09:30ET. Market focus will largely be on the Saturday meeting, assuming no policy decision is front-run and announced at the Wednesday meeting.
• Modest upward tilt in precious metals but with newsflow quiet in the run-up to the FOMC minutes, with trade updates also on the lighter side. The yellow metal currently resides in a USD 3,291.70-3,323.89/oz range.
• Modest upward tilt across base metals, albeit with the breadth of the market particularly narrow amid a lack of macro newsflow and ahead of the FOMC minutes. Copper futures overnight remained lacklustre and resumed the prior day’s declines with price action not helped by the lack of conviction in its largest buyer. 3M LME copper remains north of USD 9,500/t in a USD 9,567.00-9,651.45/t.
• US issued narrow authorisation for Chevron (CVX) to keep joint venture stakes in Venezuela although the new authorisation does not allow oil production operations or exports, according to the sources cited by Reuters.
• DoE is reportedly weighing emergency authority to keep coal plants running, according to Axios.

Geopolitics

• Russian Foreign Minister Lavrov told International Security Conference that they will announce the next round of direct talks with Ukraine in the near future.
• Ukrainian President Zelensky says he will attend the G7. Wants USD 30bln to fully fund Ukraine’s defence manufacturing capacity. Russia offered Belarus as a location for talks, this is not possible for Ukraine. Most realistic places for a peace agreement to be attained are Switzerland, Turkey & Vatican.
• Russian Defence Ministry said air defence units destroyed and intercepted 112 Ukrainian drones over a three-hour period, while Moscow’s Mayor said Russian air defence units repelled six Ukrainian drones headed for the capital.
• Israeli officials told US counterparts in April that they were preparing to attack nuclear sites in Iran, according to NYT. Subsequently, Israeli PM Netanyahu’s office denies New York Times report of attack on Iran: “Fake news”, according to Kann News.
• Iranian Nuclear Chief Eslami says, in the scenario of a US nuclear deal, then Iran could allow US inspectors as part of IAEA teams.
• German Chancellor Merz will not deliver Taurus to Ukraine, according to Politico Journalist Hans von der Burchard.

US Event Calendar

• 7:00 am: May 23 MBA Mortgage Applications, prior -5.1%
• 10:00 am: May Richmond Fed Manufact. Index, est. -9, prior -13
• 2:00 pm: May 7 FOMC Meeting Minutes

Central Banks

• 4:00 am: Fed’s Kashkari Participates in Moderated Q&A
• 2:00 pm: FOMC Meeting Minutes

DB’s Jim Reid concludes the overnight wrap

With US and UK markets returning from the public holiday, markets put in another strong performance over the last 24 hours. In part, that stemmed from a holiday-delayed reaction to Trump delaying the threat of 50% EU tariffs until July 9. But markets got a further boost from the Japanese bond rally we discussed this time yesterday, with extra impetus from stronger US data, as the Conference Board’s consumer confidence print was noticeably higher than expected. So that led to a cross-asset rally, with the S&P 500 (+2.05%) picking up after 4 consecutive declines, whilst the 10yr Treasury yield (-6.7bps) fell back to 4.45%.

The biggest of those catalysts was the news out of Japan, which meant the country’s 30yr yield fell by more than -19bps in yesterday’s session. That was its biggest daily decline since the regional banking turmoil of March 2023, and marked a sharp reversal from recent weeks, when yields had hit their highest level since that maturity was first issued. As a reminder, the move came after several media outlets reported that Japan’s finance ministry sent out a questionnaire to market participants, asking about their views on issuance. So that led to speculation that they were about to cut long-dated issuance, leading to a huge rally among those bonds. That rally in Japan then echoed around the world, with long-end bond yields seeing a significant decline. For instance, the 30yr Treasury yield (-8.6bps) was down to 4.95%, which helped to ease fears about the US debt trajectory. And in Europe, 30yr yields fell back in Germany (-6.1bps), France (-5.6bps) and Italy (-5.8bps) as well.

However JGB yields have reversed some of their rally this morning as demand at a 40yr auction fell to its lowest since July, with the bid-to-cover ratio at 2.2 from 2.9 at the previous sale in March. 10 and 30yr JGB yields are up +7.4bps and +9.0bps respectively as I type.

Nevertheless yields are still comfortably lower than where they started the week and that has supported risk over the last 24 hours, with US equities seeing a strong recovery after the long weekend. That included the S&P 500 (+2.05%), which put in its best performance since the US and China agreed to slash their tariff rates a couple of weeks earlier. That was turbocharged by the Magnificent 7 (+3.24 %) ahead of Nvidia’s results tonight. But the rally was a broad-based one, and small-caps in the Russell 2000 also rose +2.48%. Outside the US, even more records were set, with Germany’s DAX (+0.83%) and Canada’s S&P/TSX Composite (+0.75%) both closing at all-time highs. And the advance continued elsewhere, with the STOXX 600 (+0.33%) posting a second day of gains.

This optimism was clear across the board, not least in the US Dollar’s recovery, after a few tepid sessions, suggesting that investors were moving back into US assets again. It was the strongest-performing G10 currency yesterday, and the dollar index itself was up +0.59%. Other indicators of market stress eased too, with the VIX index down -1.61pts to 18.96pts, whilst US HY spreads tightened by -14bps to 316bps.

Those moves got further momentum from the Conference Board’s latest consumer confidence indicator for May. That rose for the first time in six months, rebounding by more than expected to 98.0 (vs. 87.1 expected). That included a particularly large jump in the expectations component, which surged 17.4pts on the month to 72.8, which is the biggest monthly rise since May 2009, as the US economy was still emerging from the aftershocks of the global financial crisis. So that helped to cement the view that a serious downturn would likely be avoided, which helped to support risk assets.
Meanwhile on the trade front, there was growing optimism that more trade deals were in the pipeline, particularly after Trump agreed to delay the threatened EU tariffs from June 1 until July 9. Only yesterday, NEC director Kevin Hasset said to CNBC that “we’ll probably see a few more deals, even this week.” And Trump himself said in a post that “ I have just been informed that the E.U. has called to quickly establish meeting dates.” So there was growing optimism that some kind of compromise could still be reached.

Elsewhere, we had several headlines from central bank officials. Notably at the ECB, Austria’s Holzmann endorsed keeping rates unchanged at the next couple of meetings, saying that moving rates “further south would be more risky than staying where we are and waiting until September”. He’s one of the most hawkish on the Governing Council and had already called for a pause at the last meeting in April. Germany’s Nagel, another typically hawkish voice, said it was too early to say if the ECB will cut rates in June. Meanwhile, ECB Chief Economist Lane said that the ECB can respond with further cuts “If we see signs of further falling inflation” but suggested that the terminal rate in the easing cycle was unlikely to be below 1.5%. Markets are still pricing in a 25bp cut as a near-certainty for June, with a pause considered more likely at the meeting after that in July.

Against that backdrop, 10yr yields moved lower across Europe, with those on bunds (-2.9bps), OATs (-3.3bps) and BTPs (-3.6bps) all declining. That fit into the broader risk-on move, as it pushed the 10yr Italian spread over bunds to just 98.5bps, the tightest since September 2021. However, front-end yield moves were more muted, with the 2yr German yield actually up +0.8bps on the day as part of a global curve flattening. That was repeated in the US as well, where the 2yr Treasury only fell -1.1bps to 3.98%, whereas the 10yr yield fell by a larger -6.7bps to 4.45%. As discussed at the top global yields are giving back some of their gains this morning with 10 and 30yr UST yields around +3bps higher this morning after the weak JGB auction.

Asian equity markets are still mostly higher this morning though, even if they’re coming off earlier highs, with the KOSPI (+1.29%) outperforming and rallying to a nine-month high on outsized gains in tech stocks with sentiment improving ahead of next week’s election. The Nikkei (+0.21%) is also higher with Chinese indices trading either side of flat. 

However the Hang Seng (-0.55%) is bucking the regional trend while the S&P/ASX 200 (-0.16%) is swinging between gains and losses after a strong consumer inflation report (more below). In overnight trading, US equity futures are down around a tenth of a percent.

Coming back to Australia, headline inflation remained stable at 2.4% year-on-year to April, a bit higher than the projected 2.3%. This slight increase was driven by rising health and holiday expenses, which counteracted the effect of falling petrol prices. The RBA’s preferred inflation gauge, the trimmed mean, climbed to 2.8%.

In monetary policy action, the RBNZ reduced its key interest rate by 25 basis points as expected to 3.25% and signaled a larger-than-anticipated future easing cycle. This decision was driven by growing concerns about the impact of evolving US trade policies on economic growth, with the bank now forecasting rates of 2.92% and 2.85% for late 2025 and early 2026, respectively.

To the day ahead now, and central bank highlights include the minutes from the FOMC’s May meeting, along with remarks from the Fed’s Kashkari and the BoE’s Pill. We’ll also get the ECB’s Consumer Expectations Survey for April. Data releases include German unemployment for May, and in the US there’s the Richmond Fed’s manufacturing index for May. Finally, earnings releases include Nvidia.

Elon Musk had ambitious plans when he took the helm of the Department of Government Efficiency (DOGE), famously pledging to slash at least $1 trillion in government waste. Back in February, we noted that while Musk’s mission in Washington, DC, was admirable, the ultimate cost savings would be decided by Congress.

Fast forward to Tuesday, Musk appeared in a CBS News interview where he voiced his disappointment, citing frustration that despite DOGE’s efforts to root out waste and fraud across federal agencies, President Trump’s “Big, Beautiful Bill” (BBB) comes with an alarmingly high price tag.

“I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing,” Musk said.

He added, “I think a bill can be big or it can be beautiful … but I don’t know if it can be both. My personal opinion.”

Last week, the Republican-controlled U.S. House of Representatives narrowly passed the BBB that fulfills much of Trump’s ‘America First’ agenda, such as delivering new tax breaks on tips and car loans and boosting spending on the military and hemispheric defense.

As we’ve previously explained, BBB will “massively” increase deficits by $3.8 trillion over ten years. In part because new borrowing is front-loaded and offsets are back-loaded, the bill would add massively to near-term deficits. 

The prospect of a ballooning national debt—despite DOGE’s reported $175 billion in federal waste and fraud reductions—has put Musk at odds with Trump’s BBB and, more notably, with Congress. His frustration appears primarily directed at lawmakers, whom he sees as unwilling to implement the sweeping fiscal cuts needed to course-correct that nation to avert a debt crisis.

We predicted this clash between Musk and Congress would unfold as far back as early February:

“What Musk is doing in trying to streamline the govt is admirable but ultimately it will be Congress that decides the endgame. And there things are as status quo as always.”

Here’s the bigger play at hand, and why there is only token pushback to DOGE.

You cut enough spending – even if it’s all grift and fraud – you eventually get a recession, guaranteed. That’s all Congress is waiting for cause then they use the “emergency” to vote through a far…

— zerohedge (@zerohedge) February 8, 2025

Musk is not alone. Rep. Thomas Massie (R-Ky.) has stated, “We’re not rearranging deck chairs on the Titanic tonight. We’re putting coal in the boiler and setting a course for the iceberg.” 

There is brewing dissent among other Republican senators who follow Musk…

🚨BREAKING: Just moments ago, Sen. Rick Scott said he’s a NO on the One Big Beautiful Bill in its current form. He’s demanding more spending cuts and setting America on the path to a balanced budget.

“Oh absolutely I’d vote no. If they brought it to the floor right now there’s… pic.twitter.com/a73QWl2IHb

— Charlie Kirk (@charliekirk11) May 27, 2025

Musk must be furious with Congress.

🚨 Elon Musk on DOGE:

“The ability of Doge to operate is a function of whether the government, and this includes the Congress, is willing to take our advice. We are not the dictators of the government. We are the advisors, and so we can, we can advise, and the progress we’ve… pic.twitter.com/9RrK2rCxK2

— DogeDesigner (@cb_doge) May 20, 2025

Recall what he said last week, “The ability of Doge to operate is a function of whether the government, and this includes the Congress, is willing to take our advice.” 

Authored by Steve Watson via modernity.news,

President Trump has dispatched a cadre of State Department officials to the UK to monitor and investigate the growing attacks on freedom of speech by the British government.

The Telegraph reports that “A five-person team from the US State Department spent days in the country,” and among a host of other issues they looked into a crack down on pro-life activists voicing, or in many cases silently expressing opposition to abortion clinics.

The report notes that Trump’s free speech squad, specifically from the US Bureau of Democracy, Human Rights and Labor (DRL), “met with five activists who had been arrested for silently protesting outside abortion clinics across Britain.”

🇺🇸🔥 TRUMP INTERVENES — WHEN NO ONE ELSE WOULD. 🔥🇬🇧

Finally, a President and true world leader unafraid to speak the TRUTH — and to defend God-given rights not just for Americans, but for every man and woman across the free world.

While British politicians talk endlessly about… pic.twitter.com/y9tbUnSeZo

— Francois Leclerc (@f_leclerc20037) May 26, 2025

The visit demonstrates that Trump is acutely aware of the threat to freedom that is growing in the UK and is willing to intervene in British affairs as required.

The activists, Isabel Vaughan-Spruce, Rose Docherty, Adam Smith-Connor, Livia Tossici-Bolt and Father Sean Gough, a Catholic priest, were all arrested for standing outside abortion clinics on public roads and silently praying.

The UK government introduced a new law creating so called ‘buffer zones’ outside hospitals and clinics providing abortions in Scotland in an effort to stop the activists being present.

Mrs Docherty told reporters “All I did was stand peacefully offering consensual conversation to anyone who wanted to take up my offer to talk. I didn’t break the law, I didn’t influence, I didn’t harass, I didn’t intimidate.”

“And yet, I was arrested just for standing there, peacefully, within 200 metres of a hospital,” she added.

“This can’t be just. It’s heartening that others around the world, including the US Government, have realised this injustice and voiced their support,” the 74 year-old grandmother further urged.

Trump’s State Department officials are also said to have met with officials from the Foreign Office and challenged telecom officiator Ofcom with regards to the much maligned Online Safety Act, which critics charge is being used to enforce censorship and punish those expressing opinions deemed to be ‘hateful’ by the authorities.

Trump’s officials are also reportedly  “monitoring” the case of Lucy Connolly, the mother who have been imprisoned and denied early release over an X post wherein she called for action to be taken against illegal migrants following the horrific Southport attacks last year when three children were stabbed to death by the son of Rwanden migrants living in the UK.

“The United States supports freedom of expression at home and abroad, and remains concerned about infringements on freedom of expression,” a State Department spokesperson commented.

Back in February, during a State visit to the White House, British Prime Minister Kier Starmer encountered a fired up Vice President JD Vance who directly called out Starmer’s crackdown on free speech in the UK.

Vance Calls Out British PM Starmer To His Face About UK Crackdown On Free Speech

“There have been infringements on free speech that actually impact not just the British… but also impact American technology companies and by extension American citizens,” Vance told Starmer and the reporters in the room.

It has been over three years since the Russia-Ukraine war began. 

According to the World Bank’s Fourth Rapid Damage and Needs Assessment, rebuilding the country will require an estimated $524 billion investment over the next decade. 

This graphic, created by Visual Capitalist’s Julia Wendling, in collaboration with Inigo, visually breaks down the reconstruction costs by sector, highlighting where funds are needed most. 

Top Sectors Damaged by the Russia-Ukraine War 

So far, Russia’s invasion of Ukraine has hit the housing sector the hardest. 

By the end of 2024, 13% of the country’s houses had been damaged or destroyed, leaving nearly 5 million Ukrainians displaced. 

Over the next decade, an estimated $83.7 billion will be needed to rebuild the homes lost. 

The damage to the transport sector has affected emergency response and evacuation procedures. The investment needed by this sector is second highest, totaling $77.5 billion. Of this, road repairs remain under the most strain, requiring an estimated $44.3 billion. Rails will need $20.3 billion as railway facilities endured over 190 attacks. Public transport is estimated to account for $5.3 billion. 

Before the Russian invasion, Ukraine’s energy sector contributed 14% of GDP and employed 3% of the population. 

This sector was also hit hard, requiring $67.8 billion over the next 10 years.

Other Sectors 

The damage done in Ukraine is widespread. An additional four sectors—commerce and industry, agriculture, social protection and livelihoods, and education and science—will all require over $30 billion of investment each in the coming years. 

Get Insights at Your Fingertips In the face of global change, today’s data can help form the foundation of tomorrow’s resilience. 

Visit Inigo for a data-driven view of risk.

Via OilPrice.com,

• The chief executive of Enquest criticizes the UK’s Energy Profits Levy, claiming it is doing “irreversible damage” to the oil and gas industry and discouraging investment.

• Due to the heavy tax burden, the company is planning a “disciplined approach” to investment and expects to pay a significant amount in windfall tax in June 2025.

• Enquest argues that the UK is the only country levying a windfall tax on its domestic energy producers where no windfall profits exist, further impacting competitiveness.

The boss of Enquest has slammed the windfall tax on oil and gas firms as doing “irreversible damage” to the industry and “driving job losses across the sector”.

Amjad Bseisu, Enquest’s chief executive, called for the North Sea tax to be scrapped in an operations update on Tuesday after claiming it makes the UK a less attractive place to invest.

The UK Energy Profits Levy (EPL) was introduced in May 2022 and applies to oil and gas companies operating in the North Sea.

It is designed to tax the extra profits these companies made due to surging energy prices after Russia’s invasion of Ukraine.

Initially, the rate was 25 per cent, but it later jumped to 35 per cent in January 2023.

The tax has been extended by Chancellor Rachel Reeves to run until March 2030, but has a “price floor” mechanism, which allows it to end early if prices fall significantly.

London-listed company Harbour Energy slammed the government’s “punitive fiscal position” earlier this month as it axed 250 jobs in Aberdeen.

Bseisu argued: “The recent stepdown in commodity prices has further amplified calls for the UK government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness.”

Commodity prices set to tumble

The World Bank last month forecasted that weakening global growth amidst geopolitical turmoil was set to push commodity prices down 12 per cent in 2025, followed by another five per cent in 2026.

This would mark the lowest levels of the 2020s and bring an end to the price boom fuelled by the COVID-19 pandemic recovery and the Russia and Ukraine war.

Bseisu said the UK was “the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist.”

As a result of the heavy tax burden, the FTSE 250 firm has laid out a “disciplined approach” to investment plans for the next 18 months.

The company plans to pay nearly $100m (£73.7m) in windfall tax in June 2025, which would mean most tax payments for the year will be made in the first half. As a result, the firm expects cash outflows to to be lower in the final six months of the year.

Enquest expects operating expenses to top $450m in 2025 but remains committed to “ongoing” cost reductions.

Bseisu said: “We remain focused on delivering a material UK transaction in the short term, and we are resolute in our belief that our relative advantages, both operational and fiscal, see us ideally placed as a North Sea consolidator.”

A country’s prosperity is often linked to the education level of its working-age population.

Highly educated workforces tend to have higher productivity, more capability for innovation, and offer more support for economic growth.

This chart, via Visual Capitalist’s Niccolo Conte, shows the countries with the most educated populations, measured by both the number and share of adults aged 25–64 who have a bachelor’s degree or higher. The data comes from CBRE Research, using the latest available figures as of 2023.

Which Countries Have the Most Educated Populations?

Globally, countries are at different stages of expanding access to higher education. While developed nations have generally achieved high penetration rates, emerging economies are still catching up.

Here’s a look at the countries with the most educated populations, by both absolute number and share of population:

Western nations have the highest education rates, with Europe accounting for six of the top 10 countries by share of educated adults.

Ireland leads the list, with over half or 52% of its population aged 25–64 holding a university degree or more. Switzerland and Singapore follow closely behind, at 46% and 45%, respectively.

Meanwhile, the United States stands out with a high share (40%) of educated population and the third-highest number of educated people, at over 78 million.

India and China, the world’s two most populous countries, have the lowest proportion of educated people in the dataset. However, they have the highest volume of degree-holders among all other countries due to their population sizes.

Other emerging economies in South America, including Chile, Costa Rica, Brazil, and Colombia, have education attainment rates ranging between 19% and 23%.

Given the strong positive correlation between education levels and GDP per capita, improving access to higher education remains a priority for developing economies, where large parts of the workforce are uneducated.

To learn more about this topic, check out this infographic showing How U.S. Universities Make Money, on the Voronoi app.