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China revised upwards yesterday the size of its economy by 2.7%, but said the change would have little impact on growth this year, as policymakers pledged more stimulus to spur expansion in 2025.Policy support late this year has set the world’s second-largest economy on track for a growth target of “around 5%” as activity warmed slightly, but challenges such as potential US tariff hikes still weigh on prospects for next year.Gross domestic product (GDP) in 2023 was raised by 3.4tn yuan to 129.4tn ($17.73tn), Kang Yi, the head of the National Bureau of Statistics, told a press conference, while releasing the fifth national economic census.He did not explain the reasons for the 2023 revision, but said the bureau would provide further details on its website within days.China’s economy has “withstood the test of multiple internal and external risks over the past five years, and maintained a generally stable trend while progressing,” Kang said.In previous five-yearly economic censuses, China revised up the size of the economy for 2018 by 2.1% and for 2013 by 3.4%.The fifth economic census carried out over the past five years encompassed the three years of the Covid-19 pandemic, which had a significant impact on the economy, Kang added. The international environment had witnessed “profound and complex changes” since the previous such census, he said.The revision of 2023 GDP would not have a significant impact on China’s 2024 GDP growth rate, Lin Tao, the bureau’s deputy head, told the same briefing, however.On Thursday, the World Bank raised its forecast for China’s economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would keep weighing it down next year.The economic census will provide important data to help formulate tasks for China’s 15th five-year plan from 2026-2030, and help achieve its 2035 goals, Kang said, without elaborating.President Xi Jinping’s vision of “Chinese-style modernisation” envisages doubling the size of the economy by 2035 from its 2020 level.Government economists estimate that would require average annual growth of 4.7%, a target many analysts outside China consider overly ambitious.At an agenda-setting meeting this month, Chinese leaders pledged to increase the budget deficit, issue more debt and loosen monetary policy to support economic growth next year in expectation of more trade tensions with the US when President-elect Donald Trump takes office in January.Last week Reuters reported that the leaders agreed to raise the budget deficit to 4% of gross domestic product next year, its highest on record, while maintaining an economic growth target of around 5%.The economic census showed the number of business entities in the secondary and tertiary industries at the end of 2023 rose 52.7% from the end of 2018, but growth of employment lagged, at 11.9%.The economic census showed changes in China’s job market, with 25.6% more people employed in the tertiary industries at the end of 2023 than at the end of 2018, but secondary industries had 4.8% fewer employees.As a severe property crisis hobbles a macroeconomic rebound, employees of property developers fell 27% to 2.71mn by the end of 2023 against the corresponding 2018 figure, the economic census data showed.

The United Kingdom’s Labour government has given serious thought to the public investment needed to get the economy back on track after 14 years of austerity, neglect of social infrastructure, and capital flight triggered by Brexit and uncertain economic conditions. It understands that the situation demands a new strategy to tackle big problems like child poverty, health inequities, a weak industrial base, and struggling public infrastructure.What should this look like? The UK Department for Business and Trade’s recent industrial strategy “green paper”, Invest 2035, is a promising start. However, in my own response during the public consultation period, I stressed that an industrial strategy should be oriented around key “missions” like achieving net-zero emissions, rather than around specific sectors, as the government appears to be doing. While the government has set itself five “missions”, they seem more like goals with some targets, rather than being central to the way government and industry work together.For Labour to deliver on its agenda, it must get its public-private partnerships right. Historically, public-private collaborations in the UK have involved the state overpaying and the private sector underdelivering. Following the Brexit referendum, for example, the government secretly gave Nissan £61mn ($76mn) to build new cars in the UK. But Nissan still abandoned a planned expansion at its Sunderland plant, and the promised jobs never materialised.Likewise, under the failed “private finance initiative” schemes of the 1990s, the state would pay inflated sums to private contractors to operate public services such as prisons, schools, and hospitals before handing them back to the state, often in poor condition and without any clear improvement to the service. This approach was widely used in the construction of National Health Service hospitals, with the first 15 contracts generating £45mn in fees – some 4% of the capital value of the deals – for advisers across the public and private sector. A UK Treasury analysis later showed that the general costs of PFIs were double that of government borrowing.Fortunately, many public-private partnerships globally have produced more positive results. Germany’s national development bank, KfW, offers low-interest loans to companies that agree to decarbonise. Similarly, the French government’s Covid-19 bailout of Air France was conditional on the carrier curbing emissions per passenger and reducing domestic flights; by contrast, the UK bailed out easyJet with no strings attached.In the US, the CHIPS and Science Act required companies that benefit from public funds to commit to climate and workforce development plans, provide childcare, and pay a living wage. Preference is also given to companies that reinvest profits instead of using share buybacks.The UK does have some experience in shaping markets around clear goals. In developing the Oxford/AstraZeneca Covid-19 vaccine, the government used a risk- and reward-sharing model in which it provided 95% of the funding in exchange for certain commitments from the company. AstraZeneca would provide the first 100mn doses to the UK and allow the government to donate and reassign surplus vaccines.Similarly, Octopus Energy’s acquisition of energy supplier Bulb allowed the UK government to reap £1.5bn in profit as Octopus repaid the public support it had received through an earlier profit-sharing deal. This agreement safeguarded jobs and prevented consumers from incurring any extra costs.With a mission-oriented strategy, the Labour government could scale up and systematise this type of public-private engagement. Rather than being “unreservedly pro-business,” as it claims to be in its green paper, it should ensure that public investment targets clear objectives: to crowd in private capital, create new markets, and increase long-term competitiveness.Consider the UK’s net-zero-emissions target, which is not only about clean power but also about how we eat, move, and build. The state has a crucial role to play as a first-mover, shaping markets so that private incentives are aligned with public goals. Yet judged by this standard, recent moves by the Labour government appear to fall short.For example, Prime Minister Keir Starmer’s deals with Macquarie (an investment bank), Blackstone (asset management), and others raised more than £60bn without setting clear, outcomes-oriented expectations or ensuring that both risks and rewards are shared. Equally, the government’s support of carbon capture and storage (to the tune of £22bn so far) allows funds to flow to incumbent oil giants without holding them accountable in the green transition.These deals are structured to achieve growth at any cost, when what the UK really needs is growth that is inclusive and sustainable. That requires better corporate governance to prevent situations like Thames Water (a water and waste utility) being saddled with over £2bn in debt after Macquarie became a major shareholder in 2006.As I’ve said before, growth itself is not a mission; it is the result of public and private investment, and good growth is a result of directed investment. If the UK’s climate transition is going to deliver for people and planet over the long term, the government’s engagement with the private sector must reflect confidence, not capitulation. This can start by deploying tools that the government already has. The new National Wealth Fund and Great British Energy (a publicly owned clean-energy company that is expected to launch early next year) could make a huge difference, but only if policymakers get the implementation right.For example, the National Wealth Fund should introduce conditionalities for public investments; provide public access to intellectual property and patents for research; create subsidies and other incentives for mission-aligned investments; and use loan guarantees and bailouts to move companies toward decarbonisation, improved working conditions, and fewer share buybacks. Procurement is also a strong lever, because it represents one-third of the government’s total spending and can direct investment toward strategically important goals.Ultimately, the UK government must shift from a sectoral approach to a mission-oriented one that embraces a confident, outcomes-oriented form of public-private partnership, incentivising the private sector to do its part. Labour understands the problem, but its proposed solution still needs some work. – Project SyndicateMariana Mazzucato is Professor in the Economics of Innovation and Public Value at University College London and author, most recently, of Mission Economy: A Moonshot Guide to Changing Capitalism (Penguin Books, 2022).

While official sources and the media highlight strong consumer-spending and jobs data in the US, or tout high US stock-market valuations, more than three-quarters of Americans view economic conditions as poor (36%) or fair (41%). This disconnect between performance and perception can have far-reaching consequences; it already helped to propel Donald Trump to victory in last month’s presidential election. So, what is causing it?Here, it is worth considering how market participants deal with asymmetric information – when one party has more or better information than another party or parties. Imagine you were seeking to make a purchase. As a buyer, there is a limit to the information you can glean about your options through direct observation. So, you make your decision based on your beliefs about those options, which extend beyond discernible facts to include unseen or anticipated characteristics.But the process is not finished when the transaction is complete. You then engage in “discovery” – essentially, observation. If, during this process, you learn things that do not correspond with the beliefs that drove your decision, you modify your beliefs.In the signalling and screening models that economists use, the choices made by a variety of agents close information gaps and lead to equilibrium: the beliefs shaping demand lead to choices on the supply side that turn out to be consistent with those beliefs. The crucial point is that the direct observation that follows a transaction anchors beliefs and determines equilibrium.But in our highly complex economy, characterised by specialisation and interconnectedness, such observation is not always possible. On the contrary, many or even most of the conditions that are salient for an individual’s well-being or decision-making today are not local or subject to personal observation. There can be no comprehensive discovery process ensuring that beliefs are linked to underlying realities.Where personal verification is impractical or impossible, we rely on informational intermediaries, including the traditional media, government, or experts, such as climate scientists. In our digital age, social-media platforms and online sources have also claimed a prominent position in our information ecosystems.But if these intermediaries are to close information gaps, they must be trustworthy – and Americans are not convinced that they are. A 2023 Gallup poll showed that faith in institutions, from media to government, had reached historic lows in the US, with only 18% of respondents expressing confidence in newspapers, 14% in television news, and 8% in Congress. Scientists fare better, with 76% of Americans reporting a “great deal” or “fair amount” of confidence that they will act in the public’s best interests, though the group that identifies as “highly sceptical” is growing, especially among self-reported Republicans.Why don’t Americans trust the institutions that are supposed to be helping to close information gaps? Rosy news about the economy’s performance that fails to account for people’s pocketbook realities might be part of the answer.Income-distribution data can help shed light on these realities. The 2008 global financial crisis – which began with the collapse of a housing bubble – dealt a major blow to the balance sheets of the bottom 50% of households. In 2010, this group accounted for just 0.7% of total household net worth. A partial recovery followed, but the Covid-19 pandemic and subsequent surge in inflation, which spurred the US Federal Reserve to raise interest rates, produced new headwinds. More than a quarter of US households now spend more than 95% of their income on necessities, leaving them vulnerable to even mild shocks and making wealth-building all but impossible.This year, total US household net worth stood at $154tn, with the bottom 50% of the distribution accounting for $3.8tn – just 2.5% of the total. That works out to $58,000, on average, for some 66mn US households, with many owning much less. The top 10% hold two-thirds of all US household wealth, and the bottom 90% share the remaining one-third.It is not difficult to understand why Americans might be mistrustful of those delivering a rosy economic narrative that does not correspond with their experience. Even when media outlets do highlight the challenging economic conditions many Americans face, their reports are not translated into policies and actions that make a significant difference. This has been true for at least two decades, and undermines confidence in the system as a whole. At a certain point, people may start assuming that traditional institutions are either lying or clueless.The de-anchoring of beliefs from traditional sources of information leaves the field wide open for alternatives, which may well be unreliable. The Internet – and social media, in particular – both facilitates and complicates this process, as it delivers access to vast numbers of unverified sources. The results can be highly polarizing.While research into social media’s impact on our behaviour is ongoing, it seems clear that platforms like Facebook, X, and TikTok have become powerful mechanisms for group formation. The process is self-reinforcing: individuals select their group based partly on shared beliefs, and the group influences members’ perspectives. Confirmation bias – the tendency to seek information that is consistent with one’s prior beliefs – reinforces groups’ diverging perceptions of reality. Some controversial beliefs – such as the claim that the 2020 presidential election was stolen from Donald Trump – are not actually beliefs for many, but rather screening devices to verify group members’ allegiance to the same “facts”.Against this backdrop, restoring a shared baseline perception of reality as a foundation for economic policy amounts to a formidable task. Americans’ sharply divergent economic experiences, rooted in soaring wealth inequality and many other hardships, including the rising costs of health care and college, will only compound the challenge. – Project SyndicateMichael Spence, a Nobel laureate in economics, is Emeritus Professor of Economics and a former dean of the Graduate School of Business at Stanford University and a co-author (with Mohamed A El-Erian, Gordon Brown, and Reid Lidow) of Permacrisis: A Plan to Fix a Fractured World (Simon & Schuster, 2023).

Thousands of selfie-taking Ho Chi Minh City residents crammed into train carriages yesterday as the traffic-clogged business hub celebrated the opening of its first-ever metro line after years of delays.Huge queues spilled out of every station along the $1.7bn line that runs almost 20km from the city centre - with women in traditional “ao dai” dress, soldiers in uniform and couples clutching young children waiting excitedly to board.“I know it (the project) is late, but I still feel so very honoured and proud to be among the first on this metro,” said office worker Nguyen Nhu Huyen after snatching a selfie in her jam-packed train car.“Our city is now on par with the other big cities of the world,” she said.It took 17 years for Vietnam’s commercial capital to reach this point. The project, funded largely by Japanese government loans, was first approved in 2007 and slated to cost just $668mn.When construction began in 2012, authorities promised the line would be up and running in just five years.But as delays mounted, cars and motorbikes multiplied in the city of 9mn people, making the metropolis hugely congested, increasingly polluted and time-consuming to navigate.The metro “meets the growing travel needs of residents and contributes to reducing traffic congestion and environmental pollution”, the city’s deputy mayor Bui Xuan Cuong said.Cuong admitted authorities had to overcome “countless hurdles” to get the project over the line.According to state media reports, the metro was late because of “slow capital disbursement, unexpected technical problems, personnel difficulties and the Covid-19 pandemic”.“The delays and cost overruns have been frustrating,” said professor Vu Minh Hoang at Fulbright University Vietnam, who warned that with just 14 station stops, the line’s “impact in alleviating traffic will be limited in the short run”.However, it is still a “historic achievement for the city’s urban development”, he added.With lessons learnt, “the construction of future lines will be increasingly easier, faster, and more cost-efficient”, Hoang said.Back on the train, 84-year-old war veteran Vu Thanh said he was happy to experience below ground in a more positive way after spending three years fighting American troops in the city’s famous Cu Chi tunnels, an enormous underground network.“It feels so different from the underground experience I had years ago during the war. It’s so bright and nice here,” he said.Reflecting on the delays, he added: “We built the tunnels to hide from our enemies in the past, so building a tunnel for a train should not be that hard,” he added. “Finally, we made it!”

Companies that spent billions on poorly timed acquisitions in recent years are now offloading those assets at knockdown prices.Alibaba Group Holding Ltd announced on Tuesday it’s going to sell Chinese department-store chain Intime to a local apparel group for $1bn. The price is around 30% of the company’s valuation when Alibaba bought it during the heady days of 2017. The Internet giant, which has largely abandoned its acquisitive ways amid government pressure, said it will book a $1.3bn loss on the transaction.The deal came a day after BlackBerry Ltd said it would divest its Cylance endpoint security unit to software startup Arctic Wolf for $160mn plus a small amount of stock. That’s a far cry from the $1.4bn BlackBerry paid when it agreed to buy the business in 2018. Under BlackBerry’s ownership, Cylance reported substantial losses and its revenue fell over 50%, according to Royal Bank of Canada analysts.The moves show how companies that were major acquirers during the boom times may sober up and regret those purchases only a few years later. Just last month, Just Eat Takeaway.com NV agreed to sell US food delivery service Grubhub for $650mn, a roughly 90% discount to the price it paid to buy the business at the height of the Covid pandemic.Overpayment was the inevitable byproduct of an era when competition for assets was fierce, according to Oliver Scharping, a portfolio manager at Berenberg.“Years of zero interest rates and pandemic-fuelled deal hysteria sent valuations soaring in hype sectors, often detached from fundamentals,” Scharping said. “Now, as the zeitgeist demands a sober look in the mirror, companies are trimming excess, dumping underperformers, and opting for brutal honesty over sunk-cost fantasy — even if it means a multibillion-dollar haircut.” Valeriya Vitkova, a senior lecturer at City University of London’s Bayes Business School, said that companies didn’t properly assess synergies and the expected benefits of some deals were overestimated.Now may be a good time to find buyers for these assets as the M&A market has become active again, Vitkova said. Overall M&A volumes have risen 16% this year to $3.2tn, according to data compiled by Bloomberg, and bankers expect the pace to pick up next year.These divestments allow the companies to focus on shoring up their main operations at a pivotal time. Alibaba has been working to reignite growth in its Chinese e-commerce division, where it faces fierce competition from PDD Holdings Inc and ByteDance Ltd.Meanwhile, BlackBerry Chief Executive Officer John Giamatteo is trying to turn around the company by devoting more attention to its Internet of Things business as well as its secure communications platforms.A representative for Just Eat Takeaway said the market has changed since it bought Grubhub, with competition increasing and sector valuations falling. The sale to Wonder Group Inc represents the “most attractive outcome” and “reflects the current trajectory of the business,” the representative said. Alibaba didn’t immediately respond to queries.A spokesperson for BlackBerry said it’s “incredibly pleased” with the outcome for Cylance, which will help profitability and let it focus on the growth engines in its portfolio. Investors seem happy too, with BlackBerry shares jumping 15% the day the deal was announced, the biggest gain since August 2023.Companies will continue to pursue divestments of acquisitions that didn’t work out, as markets are rewarding focus and punishing bloated firms, Berenberg’s Scharping said. That could provide good opportunities for cash-rich corporate buyers looking for bargains, as well as private equity firms that Bloomberg-compiled data show are sitting on $1.6tn of dry powder.“The pricing reset has reopened the gates for disciplined buyers to act,” Scharping said. “We’re seeing opportunists leverage cleaner balance sheets and tighter focus to pick up discounted assets with long-term upside.”

Federal Reserve officials lowered their benchmark interest rate for a third consecutive time, but reined in the number of cuts they expect in 2025, signalling greater caution over how quickly they can continue reducing borrowing costs.The Federal Open Market Committee voted 11-1 yesterday to cut the federal funds rate to a range of 4.25%-4.5%. Cleveland Fed President Beth Hammack voted against the action, preferring to hold rates steady.New quarterly forecasts showed several officials pencilled in fewer rate cuts for next year than they estimated just a few months ago. They now see their benchmark rate reaching a range of 3.75% to 4% by the end of 2025, implying two quarter-percentage-point cuts, according to the median estimate.Only five officials indicated a preference for more reductions next year.A majority of economists in a Bloomberg survey had expected the median rate estimate would point to three cuts next year.Policymakers also made a subtle adjustment to the language of the statement released after their meeting, saying they would assess several factors “in considering the extent and timing of additional adjustments” to the policy rate.Previously, they merely said “in considering additional adjustments.”The S&P 500 index fell following the announcement, while US Treasury yields and the Bloomberg Dollar Index rose.Policymakers have now lowered their benchmark lending rate by a full percentage point since mid-September, when they began cuts with an aggressive half-point move. At the time, they were encouraged by falling inflation and worried the labour market was approaching a dangerous tipping point. Since then, the landscape has shifted. The labour market has proved resilient, with payrolls growing by an average 173,000 over the last three months. The unemployment rate ticked up to 4.2% in November, but remains low by historical standards. Powell said earlier this month that downside risks to the labour market appear to have receded.Policymakers now see the unemployment rate 4.3% in 2025, updated projections show. They also slightly raised their forecast for economic growth in 2025 to 2.1%. Meanwhile, recent price data has raised concerns that inflation may be stalling above the Fed’s 2% target, prompting a number of Fed officials to say they’d prefer to slow the pace of cuts.Some have done so while voicing confidence that inflation will continue to decline, pointing to factors such as an anticipated slowdown in housing costs.Others, like Fed Governor Michelle Bowman, have emphasised that inflation remains uncomfortably above the Fed’s goal.The median projection for inflation at the end of next year jumped to 2.5%, from 2.1% in September.Officials again raised their median estimate of where the policy rate will settle over the long run to 3% from 2.9%.Officials have said there is substantial uncertainty over where that so-called neutral rate, which neither promotes nor inhibits economic activity, lies following the Covid-19 pandemic.Some have suggested the neutral rate has moved higher, meaning officials can reach it with fewer cuts than previously anticipated.President-elect Donald Trump’s proposed policies on trade, immigration and taxation add another element of uncertainty to the inflation outlook. Depending on how they are structured, those could put upward pressure on inflation and constrain the labour market, according to some estimates. Powell has said the Fed is modelling and evaluating Trump’s proposals, but not yet incorporating them into decisions because it’s unclear what specific form the policies will take.

The recruitment and headhunting industry is often criticised for making empty promises about candidate care and client relationships. In contrast, the Oakfield Group, founded by Paul Mattock, demonstrates the potential a human-centric business model and unwavering commitment to long-standing partnerships can provide to the industry. A headhunting firm that provides unparalleled access to roles and candidates across the UK and specialises in financial services, retail, leisure, hospitality, and pharmaceuticals, the Oakfield Group strives to connect candidates and clients through principles of care, sustainability, and trust.The Oakfield Group has flipped the traditional narrative of recruitment firms by focusing on integrity, transparency, and measurable impacts to back up its promises. The company’s unique approach to headhunting rejects transactional, money-first methods in favour of long-term collaboration and mutual success. For example, Oakfield tailors its terms of service to align with client needs, offering flexible structures and even tying fees to a candidate’s performance over time once recruited. Moreover, the Group remains selective with clients even against lucrative prospects to ensure every partner aligns with its values. Its approach exemplifies its belief in the quality of its candidates and commitment to shared risk and reward.As the founder and managing director, Paul instituted the unyielding principles upholding Oakfield today through the very delayed satisfaction of his career trajectory. Having started his journey at the lowest rung of the ladder in the banking industry—performing tasks like washing his bosses’ cars, collecting food orders, and being the ‘office lackey’—his eventual rise to the regional director of a major commercial bank was the culmination of years of grit, discipline, and empathy. Paul’s background gives him the unique ability to connect with professionals at all stages of their careers, from just entering the workforce and navigating career pivots to preparing for retirement.After 35 years in financial services, Paul moved to corporate recruitment only to witness practices that prioritised profits over people. Disillusioned, Paul founded Oakfield Group to set the industry’s practices right. Rather than monetary gain, it was a healthy work-life balance on his mind as he left corporate London to set up Oakfield. By the end of a single train journey, he had already secured five clients, marking the vibrant beginning of the Oakfield Group.Even though the COVID-19 pandemic hit the UK only one week after Oakfield was established, Paul’s determination to spend more time with his family, having had enough long commutes around the country meant that Oakfield was organised for remote work from the get-go. With video-calling platforms and other virtual systems ready, Oakfield was able to rapidly rise through the ranks despite the difficulties of the pandemic. With a business model based on organic expansion and sustainable relationships between headhunters, clients, and candidates, the Oakfield Group represents the power of integrity and care. Its clients in the first year still stick with them today, and 90% of its new clients are based on referrals.Oakfield’s team of headhunters exemplifies the company’s culture of care. Self-employed and empowered to set their own terms with clients, headhunters hunt as a pack without internal competition, often pooling resources together for high-priority roles and clients. This fosters a supportive environment where success is collectively shared. The Group also prioritises the mental well-being of its headhunters, clients, and candidates. Oakfield provides resources and check-ins that go beyond professional placements, addressing family and estate planning concerns to ensure work-life harmony throughout their client partnerships and candidates’ careers.Additionally, individually tailored terms of payment prove to clients and candidates alike the confidence headhunters have in the people they place by sharing the financial risk. Whether fees depend on the longevity of a candidate within their position or a candidate’s material success over several years, Oakfield Group is willing to take the leap and back its recruits. “Does it put us at risk? Yes, a little bit,” says Paul. “But, in a roundabout way, we’ll end up happier with our candidate and our client in the long term.” This approach also secures stable income streams for their headhunters, further enhancing well-being across the board.Beyond the exciting challenges of filling specialist roles, the Oakfield Group offers in-house recruitment training, corporate coaching, and other tailored services to clients upon request. They’ve even combined expertise from different clients to catalyse mutual growth, further demonstrating the lengths Oakfield is willing to go to strengthen strategic partnerships with clients.As Oakfield continues to grow, the company has ambitious plans to build upon its reputation of integrity, trust, and sustainability. They are now preparing a conference celebrating the importance of mental health and well-being within recruitment, the would-be first of its industry’s kind. Oakfield also plans to launch a recruitment app to enhance accessibility to new openings and candidates.With a growing network of referrals, clients reaching out from global hubs like Dubai and New York represent the Oakfield Group’s endless potential for the future. By blending discipline and empathy they are redefining the recruitment landscape to ensure no one is left behind. As Paul Mattock concludes, “Since the beginning, I’ve told myself that setting up Oakfield meant I would look after everybody involved. We are interested in the people, not the money, and our unparalleled success shows it.”

Italy’s growth rebound from the Covid-19 pandemic is petering out much faster than expected as structural weaknesses resurface, raising risks for the fragile public finances of the eurozone’s third largest economy.After gross domestic product unexpectedly stagnated in the third quarter, national statistics bureau ISTAT said this month it expected no near-term recovery and forecast 2024 growth of just 0.5%, half the government’s official 1% target.ISTAT’s estimate would return Italy to its customary place among the eurozone’s weakest performers and contradict an upbeat picture painted by Prime Minister Giorgia Meloni, as well as some economists, just a few months ago.Recent data has been grim. Business confidence is at its lowest since 2021, a long-running manufacturing crisis is deepening, and the services sector which had propped up the economy for most of the year is now also contracting.“Italy’s business model made up of small firms is no longer conducive to growth, it has insufficient public investment and it is fighting the green transition instead of embracing it as a growth opportunity,” said Francesco Saraceno, economics professor at Paris’s Science Po and Rome’s LUISS university.Analysts say the situation is even more worrying considering that Italy is receiving a constant flow of tens of billions of euros from Brussels as part of the European Union’s post-Covid Recovery Fund.Spain, the other main recipient of the fund, is growing at least four times as fast.Saraceno said Italy’s buoyancy in 2021-2022 was based mainly on state-funded incentives for the building sector – the so-called “superbonus” – which powered an investment surge that has reversed this year as the costly scheme has been phased out.Italy has been the most sluggish eurozone economy since the launch of the single currency 25 years ago, and its latest slump threatens to derail its public finances that have already been compromised by the superbonus.The public debt, proportionally the second largest in the eurozone, is forecast by the government to rise to around 138% of GDP in 2026 from 135% last year.If growth in 2025 comes in significantly below Rome’s 1.2% target, as most forecasters now expect, that debt ratio will probably climb faster. Investors may then become more reluctant to buy Italian bonds, increasing the government’s heavy debt-servicing burden.Italy is already under EU orders to slash its budget deficit due to massive overshoots in the last two years, removing any hope of spending its way to growth.The country’s weakness stands in stark contrast to Spain, whose GDP is forecast to grow by around 3% this year. Over the last year Spain has expanded at quarterly rates of between 0.7% and 0.9%, while Italy has hovered between zero and 0.3%.Angel Talavera, head of European research at Oxford Economics, said Spain’s success in attracting migrants and integrating them into its economy had been a key driver of its growth, along with a tourism boom and firm consumer spending.Italy’s far fewer migrants rarely do skilled or even semi-skilled jobs, and are often confined to the informal economy. Meanwhile young Italians are leaving the country in their thousands due to a lack of promising career prospects. Theshrinking population is in itself a source of economic weakness.“They are quite different types of economies, Spain is strongly reliant on services and tourism, while Italy still has a large manufacturing sector which is increasingly uncompetitive and acting as a brake on expansion,” Talavera said.“Over the last 20 years Spain also seems to have done a better job of modernising its infrastructures and public services,” he added.Economists agree that an incomplete list of Italy’s problems includes under-investment in education, infrastructure and public services, stifling bureaucracy, risk-averse banks, an under-developed stock market and an inefficient justice system – all issues that have lain unresolved for years.There is also a perhaps surprising degree of consensus on what the top policy priority should be to improve things, a question put by Reuters to five prominent Italian economists.Roberto Perotti, economics professor at Milan’s Bocconi University, Lorenzo Bini Smaghi, a former European Central Bank board member, Andrea Roventini, economics professor at Pisa’s Sant’Anna University and Science Po’s Saraceno all said the focus should be on investment in education and research.Lorenzo Codogno, head of LC Macro Advisors and a former Italian Treasury chief economist, said his priority would be further liberalisation of the labour market. — Reuters

The State of Qatar is set to celebrate its National Day (QND) Tomorrow. The event is annually observed on Dec. 18, marking the honorable legacy of the founder Sheikh Jassim bin Mohammed bin Thani, who, nearly 146 years ago, upon assuming the reins of leadership on Dec. 18, 1878, laid the enduring foundations of the modern nation, establishing the pillars upon which the State of Qatars development, progress, and sovereignty have been built.Through his unwavering commitment, he preserved the dignity of the people of Qatar and forged Qatar into a unified, resilient, and sovereign entity, standing tall with unmatched integrity. Under his leadership, Qatar emerged as a cohesive nation that welcomes both its brothers and allies, offers refuge to the distressed, honors its pledges, respects the rights of its neighbors, and steadfastly upholds the principles of honor, ethics, and moral values.Currently, Qatar serves as a shining example to the world, an epitome of security, stability, and resilience, capable of achieving unparalleled rates of development while ensuring the highest standards of living and dignity for its citizens and residents alike.December 18 each year will remain a historic milestone, uniting the hearts of the people of Qatar. The progress and prosperity achieved by the State of Qatar unequivocally reflect the enduring legacy and vision of the long trek of hard work and persistent effort initiated by the founding father, and carried forward by successive leaders of Qatar, who have remained steadfast in achieving the ultimate goal of dignity, honor, and advancement for the nation and all those who live on this blessed land.QND stands as a significant symbol in Qatar's history and is a cherished occasion for all citizens, offering an opportunity to renew the pledge and loyalty to the leader of the prosperous journey, HH the Amir Sheikh Tamim bin Hamad Al-Thani. Additionally, the robust bond between the people and leadership, coupled with major strategic initiatives, has propelled the countrys remarkable development in record time, with Qatar emerging as a global model of success, stability, and prosperity, underpinned by economic and social progress grounded in the values and foundations passed down through generations.By the grace of Allah, The Almighty, and the prudence and guidance of the wise leadership, the State of Qatar continues its path of development and construction, moving forward confidently and steadily toward the future in the service of the nations advancement and in preparing the people of Qatar to be capable of giving, achieving, excelling, while contributing to the construction and protection of the beloved country, safeguarding its identity, interests, rights, and resources. This is achieved through internalizing knowledge, dedication, and sincerity in work, and by drawing on self-sufficiency in all aspects of life and in every area of contribution and productivity within this cherished nation.More tellingly, 2024 has been a remarkable one, filled with successes, milestones, excellence, and distinction for Qatar in a variety of fields both domestically and globally, and by the grace of Allah, The Almighty, the nation has become a hub for successful diplomacy and mediation, and is witnessing one of the fastest economic growth surges in the world. It is now the leading producer of liquefied natural gas (LNG) globally and has emerged as a major player in the field of foreign investments.In addition, the nation continues to achieve remarkable successes across political, economic, scientific, cultural, social, and legislative spheres, as 2024 has been marked by dynamic Qatari political and diplomatic activity, contributing significantly to further successes and achievements in the State of Qatar's foreign relations across the gamut of political, economic, investment, military, and defense arenas. The nation has fostered its strategic partnerships through an open and measured diplomacy, rooted in mutual respect and shared interests.Charted by HH the Amir Sheikh Tamim bin Hamad Al-Thani, these diplomatic efforts have been furthered by his insightful guidance in building the foundation of Qatar's economic independence, safeguarding its national security, and reinforcing its bilateral relations with all nations around the globe.HH the Amir undertook a series of diplomatic trips to numerous Arab, Islamic, and friendly nations, and subsequently Doha has emerged as a global hub for political, diplomatic, and economic engagement, hosting an array of visits by heads of state, senior officials, and prominent international figures, thereby underscoring the widespread respect and appreciation for Qatar's foreign policy, as well as its significant contributions to global political, economic, diplomatic, and developmental efforts, in addition to its commitment to dialogue as a means of bolstering international peace and security as a bedrock of its approach.In 2024, the State of Qatar hosted a series of strategic dialogues and political consultations with a host of sisterly and friendly nations and remained steadfast in its participation in key international forums, including the 79th session of the United Nations General Assembly in New York.In November, HH the Amir Sheikh Tamim bin Hamad Al-Thani, attended the award ceremony for the 8th edition of the HH Sheikh Tamim Bin Hamad Al-Thani International Anti-Corruption Excellence Award (ACE), held in San Jose, Costa Rica.As part of the nations consistent progress, HH the Amir issued a decree on Oct. 29, 2024, inviting all citizens who have reached the age of 18 to participate in a national referendum on the amendments to the country's permanent constitution. The decree established a national referendum commission vested with the responsibility of organizing, managing, and announcing the results of the referendum. It specified that voting would take place from 7:00 am to 7:00 pm, with the results to be declared within 24 hours of the conclusion of the referendum.In its regular weekly session on Oct. 28, the Shura Council unanimously approved the proposed constitutional amendments and forwarded them to HH the Amir, following a review of the report from the special committee tasked with studying amendments to certain provisions of the constitution. The session featured constructive and in-depth discussions, reflecting the members' commitment to strengthening national unity, upholding the principles of justice and the rule of law, and ensuring the nation's supreme interests, in line with the directives of HH the Amir.Upon completion of the voting and the tallying of votes, HE Minister of Interior and Chairperson of the General Referendum Committee, Sheikh Khalifa bin Hamad bin Khalifa Al-Thani, announced that the proposed constitutional amendments had received 90.6% approval from the total valid votes cast.On Dec. 12, HH the Amir Sheikh Tamim bin Hamad Al-Thani, issued a decree approving the general state budget for the fiscal year 2025, with HE Minister of Finance Ali bin Ahmed Al Kuwari announcing that the total projected revenues for the State of Qatar's 2025 budget amount to QR 197 billion, reflecting a decrease of 2.5%, compared to the total revenues of the 2024 fiscal budget.Regarding the total expenditures, His Excellency stated that they amount to QR 210.2 billion, marking an increase of 4.6% over 2024, emphasizing that the allocations for the health and education sectors reached QR 41.4 billion, representing 20% of the overall budget. This allocation underscores Qatars unwavering commitment to human capital development policies and boosting the quality of public services.In addition, necessary financial resources have been designated for strategic sectors, including trade and industry, research and innovation, tourism, digital transformation, and information technology, to back efforts aimed at diversifying the economy and achieving sustainable development. Furthermore, the provision for salaries and wages in the 2025 budget has been increased by 5.5% over 2024, totaling QR 67.5 billion, whilst the budget for major capital expenditures has seen a modest increase of 1.4% to ensure the consistent implementation of strategic and developmental projects.Throughout the year, and in alignment with the nations economic priorities, HH Sheikh Tamim bin Hamad Al-Thani, Chairman of the Supreme Council for Economic Affairs and Investment, chaired four meetings of the Council, which were convened at the Amiri Diwan.In October, HH the Amir Sheikh Tamim bin Hamad Al-Thani enjoined the Cabinet to issue instructions for the preparation and implementation of a comprehensive package of economic initiatives aimed at supporting the private sector and fostering its participation in the national economy.These initiatives included the forgiveness of outstanding loans for Qatari firms that benefited from the national guarantees program, which was designed to assist the private sector during the COVID-19 pandemic. Moreover, new initiatives were introduced to provide short-term financing for working capital to those Qatari firms that had previously benefited from the aforementioned program. The Cabinets statement confirmed that this royal initiative was intended to support private sector firms in addressing the economic repercussions stemming from the measures implemented to combat the spread of the pandemic.Last June, HE Minister of Municipality, Abdullah bin Hamad bin Abdullah Al Attiyah, issued a ministerial decision to reduce the rental value of land in the industrial zones under the Ministry's jurisdiction, in pursuit of fostering the growth of the national economy, bolstering the private sector's role in economic diversification, and contributing to the ongoing development trajectory of the nation.In September, HH the Amir promulgated a law concerning the localization of employment within the private sector, elevating the efforts to attract a talented national workforce to the private sector, and expanding the opportunities for enhancing the competencies of the national workforce, while encouraging the private sector to absorb and nurture national talent.In November, under the patronage of HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thanis, HE Minister of Labor Dr. Ali bin Samikh Al Marri, inaugurated the National Strategy for an Effective and Highly Productive Workforce 2024-2030, emphasizing that this new strategy intends to increase the Qatari nationals engagement in the labor market by empowering and qualifying them, particularly within the private sector. The strategy seeks to enhance the ability to attract skilled labor while ensuring the protection of their rights, in addition to driving increased productivity, stimulating innovation, and optimizing efficiency across various sectors, as well as bolstering performance and productivity of workers in the public sector.The National Human Rights Committee (NHRC) launched its strategic plan for 2024-2030, in observance of Qatar's Human Rights Day, which falls annually on Nov. 11. The event was held under the theme of human rights: a sustained force toward a better future.Last May, HH the Amir issued an Amiri decree establishing the National Planning Council, with the General Secretariat of the Council of Ministers clarifying that the decree ushered in a new era in the strategic and developmental planning of the state, positioning the country to better align with the ongoing developmental renaissance across multiple sectors.Last January, the State of Qatar launched its third National Development Strategy for 2024-2030, marking the final phase on the path toward achieving the objectives of the Qatar National Vision 2030, which was unveiled in 2008. The strategy, in question, is dedicated to ensuring steadfast preparedness to surmount emerging challenges while steering Qatar toward becoming one of the worlds leading nations by 2030, in addition to achieving the sustainable development and ensuring a high quality of life for all citizens and future generations.The new strategy will prioritize enhancing competitiveness, fostering innovation, and supporting institutional excellence, while striving to balance sustainable growth with social cohesion, in line with national outcomes.Recognizing that education is the cornerstone underpinning the State of Qatars advancement and the prosperity of society, the nation has, since the inception of its blessed journey, embraced the principle of investing in human capital, positioning it at the vanguard of its national priorities. Notwithstanding the significant strides the state has made in achieving comprehensive developmental and economic progress, the ambitions of its visionary leadership remain boundless.The leadership consistently strives for excellence, seeking the highest aspirations for the dignity, welfare, rights, and aspirations of its people. With the commencement of the current academic year on Sept. 1, 136,802 students enrolled in 303 public schools and kindergartens began their studies, marking the official launch of the 2024-2025 academic year.On Sept. 2, HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, launched the Ministry of Education and Higher Education's Strategy for 2024-2030, under the theme: "Igniting the Spark of Learning", to advance the education sector in the State of Qatar by ensuring the provision of high-quality education, promoting equal opportunities, continuously developing the skills of educators, and fostering the educational environment through the adoption of cutting-edge pedagogical practices.In alignment with the nation's commitment to the advancement of knowledge and the recognition of academic excellence, HH Sheikh Tamim bin Hamad Al-Thani, sponsored the 17th Education Excellence Day Award ceremony at the Sheraton Doha Hotel, and honored the recipients of the 2024 award, a pantheon of 60 individuals, including holders of PhD and master's degrees, as well as graduates of both undergraduate and secondary education.Additionally, outstanding students from both preparatory and elementary levels were recognized, alongside outstanding educators, schools, and exceptional scientific research.Last May, HH the Amir presided over the award ceremony that honored the winners of the sixth edition of the State Incentive and Appreciation Awards in science, arts and literature at the Amiri Diwan, with 13 outstanding individuals, both men and women, being honored for their remarkable contributions to their respective fields, further underscoring Qatar's unyielding commitment to fostering talent and innovation.Last January, HH the Amir Sheikh Tamim bin Hamad Al-Than, formally inaugurated the Qatar National Archives located in Musheireb, an institution that operates under the auspices of the Amiri Diwan and toured the facility, familiarizing himself with the archives' infrastructure and its contents, which are devoted to documenting the nations history, as well as organizing the collection, preservation, and oversight of historical records and documents.In March, the State of Qatar launched the Doha Arabic Book Award, an initiative that stands as part of the nation's leadership efforts to support and honor Arab culture and the individuals contributing to its preservation and promotion.In alignment with its commitment to the health and well-being of both its citizens and residents, the State of Qatar has dedicated itself to the creation of a world-class public healthcare system over the past few years, guided by the principles outlined in the Qatar National Vision 2030, and made substantial investments in promoting the health and welfare of its population, which culminated in significant advancements in healthcare services.Recent statistics revealed that by the end of 2023, the number of public hospitals and long-term care facilities reached 19, with the number of public health centers, including those operated by the Primary Health Care Corporation (PHCC) and others managed by the Qatar Red Crescent Society (CRCS) under an agreement with the Ministry of Public Health, rising to 35 centers distributed across the country.Last September, HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, formally launched the National Health Strategy 2024-2030, titled 'Health for All.', devoted to transforming the State of Qatars healthcare sector, ensuring the provision of a high-quality standard of living for all members of the community, with the aim of positioning Qatar as one of the premier countries for family life, while simultaneously promoting the nations standing on the global stage within this critical sector.Last April, Her Highness Chairperson of Qatar Foundation, Sheikha Moza bint Nasser, formally launched Qatar Precision Health Institute (QPHI), to consolidate the efforts of key health and genomics initiatives in the country, namely the Qatar Biobank and Qatar Genome Program, in pursuit of advancing the State of Qatar's commitment to personalized medicine and its application across the healthcare system.QPHI stands as a testament to the nation's vision to harness the power of scientific research and innovation to enhance public health, spearheading the development of precision healthcare in Qatar by adopting a personalized and data-driven approach that maximizes the potential of emerging technologies to optimize patient-centered healthcare outcomes.Last July, HE the Prime Minister and Minister of Foreign Affairs inaugurated the Medical Care and Research Center, that operates under Hamad Medical Corporation (HMC), as part of the State of Qatars unwavering commitment to advancing healthcare services. This cutting-edge facility is dedicated to enhancing clinical practices and fostering the development of precision medicine by conducting rigorous clinical trials aimed at furthering the nations healthcare capabilities. Additionally, Last October, the PHCC launched its third strategic plan 2024-2030, entitled 'The First Choice for Our Communitys Health.'.The State of Qatar has unequivocally excelled itself in the area of clean energy and continued throughout the year 2024 to further its position and leadership in the global gas industry.Last February, HH the Amir Sheikh Tamim bin Hamad Al-Thani, laid the foundation stone for Ras Laffan Petrochemical Complex in the Ras Laffan Industrial City. This ambitious project is one of the largest petrochemical ventures globally and is poised to elevate Qatars petrochemical production capacity to approximately 14 million tons annually by the final quarter of 2026. And with an investment totaling six billion dollars, it stands as the single largest investment in the petrochemical sector in the history of QatarEnergy.On Feb. 25, the State of Qatar announced a significant expansion of the North Field, thereby increasing the Qatars liquefied natural gas (LNG) production capacity, raising the annual output from 77 million tons to 142 million tons before the end of 2030, underscoring Qatar's unwavering commitment to fostering its strategic role in global energy markets, while simultaneously advancing its clean energy initiatives.Throughout 2024, QatarEnergy has entered into an array of new agreements aimed at supplying several nations with LNG, naphtha, and sulfur, while also undertaking offshore exploration operations along the coastlines of a range of countries. The firm has secured multiple contracts for the construction of LNG carriers, bringing the total number of vessels ordered as part of its fleet expansion program to 128, including 24 giant Q-Max class carriers.In addition, QatarEnergy has awarded four major engineering, procurement, construction, and installation contracts worth $6 billion related to the next phase of the development of the Al Shaheen offshore oil field, the largest of its kind in Qatar, with the objective of increasing production by approximately 100,000 barrels per day.In a further testament to its leadership in the energy sector, QatarEnergy has, likewise, unveiled its plans to construct a new monumental solar power plant in the Dukhan region, set to be one of the largest solar power plants globally. Interestingly, with a production capacity of 2,000 megawatts, the facility will nearly double Qatars solar electricity generation capacity, contributing approximately 4,000 megawatts of solar power by 2030.Under the patronage of HH the Amir Sheikh Tamim bin Hamad Al-Thani, HH the Deputy Amir Sheikh Abdullah bin Hamad Al-Thani, laid the foundation stone for the Blue Ammonia Plant project last November at the Mesaieed Industrial City, positioning itself as the worlds first and largest blue ammonia facility, with an annual production capacity of 1.2 million tons. The facility is set to commence operations in the second quarter of 2026, with a total investment value of QR 4.4 billion.Last April, the Qatar General Electricity & Water Corporation (KM1) Kahramaa, launched the Qatar National Renewable Energy Strategy (QNRES), aimed at diversifying and increasing the utilization of renewable energy sources, particularly solar energy, and incorporating them into the national electricity mix, by virtue of the high-quality solar energy resources, with Kahramaa stating that the launch of the strategy is an ambitious step that will yield future benefits for the energy sector in terms of economic advantages, environmental impact, and energy security.Early in December 2024, HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, officially launched the Qatar National Food Security Strategy 2030, as part of the State of Qatars strategies and plans for food security, in pursuit of achieving sustainable food security through guiding principles that include promoting wholesome and sustainable consumption habits, ensuring food safety and quality, supporting sustainability and climate change adaptation, and fostering effective partnerships.Last November, the Ministry of Environment and Climate Change (MOECC) inaugurated its strategic framework for the period 2024-2030, developed under the overarching theme "Together towards a sustainable environment for a better future", in pursuit of establishing an enduring environment in harmony with the nations developmental trajectory, while ensuring resilience in navigating the potential effects of climate change. The strategy underscores the imperative of protecting the environment and its natural resources. And in February, MOECC launched an air quality platform for public access via its official website as part of its complementary effortIn February, the Ministry of Communications and Information Technology (MOCIT) formally unveiled the Digital Agenda 2030, in consistent with the State of Qatars ongoing digital advancement, thereby constituting the definitive roadmap for Qatar's digital transformation, designed to achieve the objectives outlined in the third National Development Strategy, in full alignment with the broader vision articulated in the Qatars National Vision 2030.The State of Qatar envisions a comprehensive digital transformation by 2030, with aspirations to position itself as a formidable global contender in areas such as smart cities, E-government, cybersecurity, and emerging technologies, including AI and the metaverse. This ambitious transformation is projected to generate substantial economic dividends while reinforcing Qatar's stature as a preeminent hub for digital technology globally.On Dec. 10, 2024, HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, inaugurated Fanar The Arab Artificial Intelligence Project, during the opening of the World Summit AI Qatar 2024, in Doha.The project is a salient milestone that reflects the State of Qatars commitment to promoting the omnipresence of the Arabic language, and the Arab and Islamic culture in AI era. It comes by virtue of the productive collaboration between the MOCIT and Hamad Bin Khalifa University (HBKU), a member of Qatar Foundation for Education, Science, and Community Development (QF).Last June, the Ministry of Municipality unveiled its newly developed strategy, which is anchored in three core priorities: excellence in service delivery and digital transformation, enhancement of food security, and advancement of the overall quality of life, underscoring the State of Qatars unwavering efforts to leverage innovative approaches to address critical areas of national development.Qatar has meticulously cultivated a state-of-the-art, integrated, and sustainable transportation ecosystem that spans land, air, and sea, effectively positioning the nation at the vanguard of global transportation networks, thereby facilitating the successful hosting of major global events and enabling the provision of environmentally conscious mobility solutions.Concerning Hamad International Airport (HIA), it has ascended to a preeminent global status, commemorating its 10th anniversary in 2024, since its operational commencement. And over the course of its first decade, HIA has consistently delivered extraordinary travel experiences to passengers transiting through Doha to destinations around the world.During this period, it has garnered numerous prestigious accolades, including three occasions as the worlds best airport, while also securing the second position in the Middle East for air connectivity. And from May 2014 to May 2024, HIA has efficiently processed 325.1 million passengers, facilitated by its continually expanding and state-of-the-art facilities.In 2024, Qatar's ports played a profound role in enhancing maritime trade flows both domestically and globally, witnessing a 23% increase in transshipment volumes, with the State of Qatar signing new cooperation agreements and memoranda aimed at bolstering the strategic position of Hamad Port, as Qatar's primary gateway for trade with the world to reinforce the port's prominence and optimize investment. Currently, the port is directly and indirectly connected to over 100 maritime destinations worldwide through over 28 shipping lines operated by a range of global shipping firms.More tellingly, the Public Works Authority (Ashghal) continues to pursue the objectives of the Qatar's National Vision 2030 by executing comprehensive infrastructure and public building development projects across the nation to position Qatar as one of the most advanced nations globally in this sector. And Ashghal currently oversees a broad range of infrastructure programs throughout the country, some of which have earned international accolades for their excellence.In June 2024, HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani inaugurated the Al-Semaisma project, one of the latest Ministry of Municipalitys initiatives.Managed by the Qatari Diar real estate investment firm, the project represents an investment of QR20 billion and spans an area of 8 million square meters. Upon completion, it is anticipated to become a new landmark in Qatar, further promoting the country's iconic landmarks and distinctive tourism destinations.In the quest for safeguarding the security of the nation and its citizens, the Qatar Armed Forces with their diverse branches, alongside the Ministry of Interior and its operators have been receiving foremost care from HH the Amir and his sagacious government through outfitting them with the state-of-the-art accoutrements and weapons, in addition to their participation in military trainings at home and abroad with the forces of friendly and sisterly nations to ensure they remain vigilant guardian of the nation's security and the shield that stands in defense of the countrys achievements, interests and territory.On Jan. 23, 2024, HH the Amir Sheik Tamim bin Hamad Al-Thani inaugurated the Qatar Amiri Air Forces No.5 Ababil (F15 QA) strategic fighter jet wing at Al Udeid Air Base. And on Nov.30, the State of Qatars flag was held aloft on the strategic transport and support vessel 'Al Fulk' and the signing of its handover to the Qatari Amiri Navy. The ceremony of holding the Qatari flag aloft took place in La Spezia, Italy.In 2024, new batches of students have been graduated from Qatars military colleges, while on Dec.11, 2024, the Ministry of Defense launched the Defense Digitalization Compass at Ahmed bin Mohammed Military College, with the objective of transforming the Qatar Armed Forces into a more efficient, information-driven, knowledge-based, and networked organization, in pursuit of bolstering the high efficient digitization capabilities within its operating forces.During 2024, the State of Qatar steadfastly proceeded with its humanitarian role on the regional and global stages by extending a helping hand to those in need all over the world, as its flags of humanitarian work have been vibrant and ubiquitous, with the country providing financial, relief and medical aid to states, institutions, and peoples afflicted by persistent natural disasters, crises, wars and conflicts in all hotspots and disaster-stricken territories on the Earth.Last November, the Hamad bin Khalifa Charitable Foundation was established to proceed with the process of giving and relief. The foundation aims to improve the living conditions of needy people through providing support and social care in education, health and social development, in addition to identifying the beneficiaries needs and meeting them at home and abroad.

Canada’s Finance Minister Chrystia Freeland quit yesterday after clashing with Prime Minister Justin Trudeau on issues including how to handle possible US tariffs, dealing a huge blow to an already unpopular government.In a stinging resignation letter, Freeland dismissed Trudeau’s push for increased spending as a political gimmick that could hurt Ottawa’s ability to deal with the 25% import tariffs US President-elect Donald Trump says he will impose.The resignation by Freeland, 56, who also served as deputy prime minister, is one of the biggest crises Trudeau has experienced since taking power in November 2015. It also leaves him without a key ally when he is on track to lose the next election to the official opposition Conservatives.“The government of Canada is itself spiraling out of control,” Conservative leader Pierre Poilievre told reporters, repeating calls for an immediate election.“We cannot accept this kind of chaos, division, weakness, while we’re staring down the barrel of a 25% tariff from our biggest trading partner ... we simply cannot go on like this,” he told reporters.Freeland said she was quitting in the wake of a meeting last Friday with Trudeau, who asked her to take on a lesser post after the two had argued for weeks over spending.A Liberal source said Trudeau wanted Freeland to serve as minister without portfolio dealing with Canada-US relations in name only – in effect a major demotion.Her resignation came just hours before she was due to present a fall economic update to parliament, a document widely expected to show the minority Liberal government had run up a much larger 2023/24 budget deficit than predicted.Officials said the document would be unveiled yesterday as planned but gave no details.“This will likely trigger a leadership crisis within the Liberal caucus ... (it) is politically and personally devastating for Trudeau,” said Nik Nanos, founder of the Nanos Research polling firm.Polls show the ruling Liberals, who have been in power since November 2015, are set to be crushed in an election that must be held by late October 2025.Freeland, a former journalist, served as trade minister and then foreign minister before taking over the finance portfolio in August 2020. As minister, she oversaw the massive government spending campaign to deal with the damage done by Covid.Colleagues were clearly stunned.“This news has hit me really hard and I’ll reserve further comment until I have time to process it,” said an emotional Anita Anand, president of the Treasury Board.Trudeau has been under pressure for months from Liberal legislators alarmed by the party’s poor polling numbers, in part due to unhappiness over high prices.But he is safe for now, since Canadian political leaders are chosen by special conventions.“This is quite a bombshell,” said Nelson Wiseman, political science professor at University of Toronto. “I think the problem the Liberals have is that they have no mechanism to remove Trudeau. Only a full blown caucus revolt could do that.”Trudeau’s minority government, which needs support from other legislators to stay in power, has so far been kept in power by the left-leaning New Democrats.In a statement reacting to Freeland’s resignation, party leader Jagmeet Singh made no mention of whether he would continue to continue propping up Trudeau.Canada’s 10-year note yields climbed to their highest level since November 28. They were last up 4.2 basis points at 3.2%. The Canadian dollar weakened to a four and a half year low at 1.4268 per US dollar before reversing course.Domestic media reports said Freeland and Trudeau had clashed over a government proposal for temporary tax breaks and other spending measures.“For the last number of weeks, you and I have found ourselves at odds over the best path forward for Canada,” Freeland said in a letter to Trudeau posted on X.Freeland said the threat of new US tariffs represented a grave threat.“That means keeping our fiscal powder dry today, so we have the reserves we may need for a tariff war. That means eschewing costly political gimmicks, which we can ill afford,” she wrote.When Trump came to power in 2017 he vowed to tear up the trilateral free trade treaty with Canada and Mexico. Freeland played a large role in helping renegotiate the pact and saving Canada’s economy, which is heavily reliant on the United States.Although tensions between prime ministers and first ministers are not unusual – Trudeau’s first finance minister quit in 2020 in a clash over spending – the level of invective in Freeland’s letter was remarkable by Canadian standards.“On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the Cabinet... you made clear that I no longer credibly enjoy that confidence and possess the authority that comes with it,” Freeland said.“Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet.”Freeland left the same day as Housing Minister Sean Fraser announced he was resigning for family reasons. Another six ministers have either already quit or announced they will not be running again in the next election.Before entering politics in 2013, she worked as a journalist and in senior editorial roles with several media companies, including the Financial Times, the Globe and Mail, and Reuters News where she worked from 2010 to 2013.One potential replacement could be former Bank of Canada governor Mark Carney, who already serves as an economic adviser to Trudeau. Carney, though, is not a legislator and tradition dictates he would need to run for a seat in the House of Commons elected chamber.

A tumultuous political year has been accompanied by surprisingly benign economic indicators, although growth in some markets is subdued. A delicate balance continuesIn 2024 we have experienced generally benign economic conditions for most of the world despite fierce regional conflicts and volatile politics. The outlook from the IMF in October reported economic growth to be ‘stable yet underwhelming’ – somewhat subdued in the Middle East, Europe, central Asia and sub-Saharan Africa, higher in the USA, and also in emerging Asian economies, helped by surging demand for semiconductors and electronics. The growth in artificial intelligence is driving significant demand.On interest rate policy, there were no major shifts in policy direction. Just over a year ago, in late 2023, some economists had been anticipating several interest rate cuts during 2024. But recession did not threaten and the sober projections of the IMF and central banks proved to be closer to the mark, anticipating just three interest rate cuts in the year. In the end, there were two, although one was of half a percent, not the usual quarter, so this projection – which I am relieved to say I concurred with a year ago – was spot on.Employment continued to rise in the US in 2023 and in 2024. In the year October 2023-October 2024, there was an average of 194,000 additional jobs each month, according to the Bureau of Labor Statistics. Unemployment edged up in the middle of the year to 4.3% before falling back to 4.1%. GDP growth in the US has been in the 2-3% per year range for the past few years, except for 2020, the year of Covid.Europe has experienced much more sluggish growth. The former economic powerhouse Germany has faced something close to a crisis. Its previously dominant car manufacturing industry is threatened by competition from Chinese companies, which can make electric vehicles (EVs) much more cheaply.Both Germany and France have faced political uncertainty. The coalition government in Berlin fell in early November after Chancellor Olaf Scholz dismissed the Finance Secretary Christian Lindner over a dispute in which Lindner, head of the Free Democrats, refused to a lifting of the debt brake in order to boost spending and growth. There us due to be a vote of confidence in the three-party coalition in January.In December, the French Prime Minister Michel Barnier attempted to force through a relatively austere budget through the hung parliament, but populist parties of both left and right blocked this, resulting in political paralysis. Barnier was forced to step down after just three months.The most significant political event of the year has been, of course, the election of Donald Trump to the US Presidency. His Republican Party gained control of the Senate and House of Representatives, so he has a mandate for his radical agenda of trade tariffs, repatriation of undocumented migrants, and likely brinkmanship in geopolitical negotiations with Europe, President Putin in Russia, the Middle East and, most significantly, China. He takes up office next month.In the Middle East, we have witnessed the shocking escalation of conflict between Israel and Hezbollah in Lebanon, followed by the announcement of a ceasefire in late November. It is to be hoped that de-escalation can continue in the region, with improved prospects ultimately for those in the conflict zones. Meanwhile, Syria experienced a dramatic turning point as the president fled the country amidst a surge of rebel forces taking over key regions.In Ukraine, the attritional warfare has continued. Gains that Ukraine had made in 2023 were partially lost in the Russian offensives of 2024, but at considerable loss of life. In August, Ukraine seized a part of Russian territory near Kursk and has held on to some of the territorial gains, while being pushed back in others. Trump has promised to end the bloody stalemate and impose a settlement – a huge challenge he has set himself.Troops from Communist North Korea were confirmed to have joined Russian forces in the conflict, causing concern around the world at regional or even global escalation. Meanwhile South Korea, normally a bastion of prosperity and political stability, was affected by the decision in early December by President Yoon Suk-yeol to impose martial law as part of a clampdown against Communist elements sympathetic to North Korea. This prompted an immediate protest from Parliamentarians and the public alike, and consequent withdrawal of the plans, although the situation remains uncertain. President Yoon is set to face impeachment proceedings.As the year ends, the forces of moderation and turbulence would appear to remain in a delicate balance.The author is a Qatari banker, with many years of experience in the banking sector in senior positions.

Since a crippling strike at many of Boeing’s US plane factories ended more than a month ago, progress ramping up production of its best-selling 737 MAX jet has been deliberately slow.Safety inspectors inside the 737 MAX factory outside Seattle laboriously scoured half-constructed planes for flaws they may have missed during the seven-week work stoppage.Other workers poured over manuals to restore their expired safety licenses. The factory was initially so lifeless in mid-November that one employee left early because the bins of fasteners he was tasked with replenishing weren’t being used, according to a source inside the plant. The result: no new 737 MAX plane has been completed. Boeing said on Tuesday that it had restarted MAX production last week, as first reported by Reuters.Boeing’s cautious approach, following criticism that the planemaker for years rushed production, has garnered praise from regulators and some airline CEOs.But it also has some smaller suppliers who cut jobs or operating hours during the strike hesitating to staff-up again, creating further uncertainty in an already fragile supply chain, according to three suppliers, one analyst and an industry source. Both Boeing and rival Airbus have struggled to meet production goals due to supply chain delays. Boeing CEO Kelly Ortberg in October told analysts he was anticipating a bumpy return from the supply chain post strike.Parts that used to take a day to be finished at a processing shop now take a week, one supplier told Reuters.This account of Boeing’s effort to restart production of its strongest-selling jet is based on interviews with a dozen Boeing factory workers and 10 suppliers, most of whom spoke on condition of anonymity because they are not authorised to talk to the media.It shows that Ortberg is sticking to his pledge to cautiously restart 737 MAX production, prioritising safety and quality due to heightened regulatory scrutiny following a January mid-air panel blowout on a near-new plane.The interviews also revealed that some suppliers are still struggling to recover from the strike, after wrestling with slumping plane production during Covid-19, and the 2019 MAX grounding following two fatal crashes involving the model.Boeing “will continue to steadily increase production as we execute on our safety and quality plan and work to meet the expectations of our regulator and customers,” Boeing spokesperson Jessica Kowal said. “We will also continue to work transparently with our suppliers, listening to concerns and looking for opportunities to improve collaboration to ensure our entire production system operates safely and predictably.”After weeks of inertia, there were fresh signs of movement inside Boeing’s Renton 737 MAX factory last week, three sources said, with green fuselages entering the final assembly line where the wings and tail get attached.The restart, while not bringing immediate relief, is good news for financially-strapped fuselage supplier Spirit AeroSystems which was running low on storage space during the strike. A Reuters reporter saw over 100 MAX fuselages lined up at Spirit’s Wichita factory this week.Spirit Aero spokesperson Joe Buccino said the company was “working closely with Boeing as they restart production.” Boeing executives have privately said they hope to produce 15 to 20 MAX jets this month, two of the 10 suppliers and one industry source said, although one of them cautioned that the chance of hitting the higher end of that target is unlikely. The Boeing spokesperson did not comment on those numbers.Boeing typically closes most planemaking operations between December 24 and January 1.While Boeing doesn’t disclose production figures, the planemaker said in October that before the strike it was preparing to hit a target of 38 737 jets per month by year’s end.At the factory, daily tasks are paired with exacting efforts to clean up and take steps to avoid error, with note-taking FAA officials carrying clipboards and donning reflective vests a regular sight, they said.FAA Administrator Mike Whitaker praised Boeing on December 5 for not following past practice by immediately restarting production after the strike, instead focusing on workforce and training. Still, Whitaker told Reuters that Boeing has a long journey to achieve its targeted safety culture. “The plant’s cleaner, as you would expect, but they’re frank about the fact that they’ve got a long way to go,” he said.Stabilising Boeing’s MAX production is key both for the planemaker and for the financial health of its supply chain on the jet with 4,200 outstanding airline orders and which is expected to drive revenues for years to comeSix out of the 10 suppliers told Reuters they won’t bring back workers before 2025, partly because they are unsure whether Boeing will need to again change its production plans.Two suppliers said they were told by Boeing that the planemaker is expected to give a private update on a key internal 737 supply chain production milestone for the supply chain, this month.“Supplier trust in Boeing rates is at a low point,” said Glenn McDonald, a supply chain specialist at US aerospace consultancy AeroDynamic Advisory, which advises clients in areas like business and corporate strategy.“Suppliers have been burned before by investing for rates that didn’t come ... that doubt becomes a self-fulfilling prophecy.”In the short term, Boeing can likely count on excess parts and components it has amassed this year to build its planes since until the strike it largely continued purchasing from suppliers at a higher rate than it needed because it was producing fewer jets due to the blowout. Then, purchasing largely slumped during the strike. As production comes back online, supplier scepticism over Boeing’s rates could impede needed investments to meet Boeing’s plans for a return to a rate of 38 and above next year, according to three suppliers, McDonald and an industry source.Boeing’s struggles mean it will take longer to return 737 MAX production to its pre-strike levels than after a 2008 work stoppage, when the planemaker got back to a monthly rate of 31 in about 25 days, McDonald said.That longer recovery is being acutely felt by some of the hundreds of small suppliers that dot Boeing’s manufacturing heartland in Washington state. Smaller aerospace suppliers are less bullish on making capital investments than many of their larger counterparts, said Christopher Chidzik, principal economist at the Association for Manufacturing Technology, a trade group.In October, despite the Boeing machinists strike, aerospace producers increased orders of manufacturing technology to the highest level of 2024, indicating that they used the downtime to replace and expand technology used on production lines, he said.Smaller job shops went against that trend, he added.Seattle-area supplier Rosemary Brester hoped she and her husband would be able to get their metal aircraft components processed more quickly following the end of the strike, but delays persist.The couple, who have been running Hobart Machined Products since 1978 out of a workshop beside their home, rely on a finishing specialist to anodise and paint their precision parts before sending them to larger companies that sell to Boeing.This used to take a day, now it takes a week, because the finishing specialist has been short-staffed since laying off workers during the strike.“All we can do is manufacture to the schedule we have, maybe expedite parts and pay a bit more to get them to our customers on time,” she said.“Until I see some real stability, I’m not going to hire anybody,” Brester said.Carmen Evans, co-owner of New Tech Industries in Mukilteo, Washington near Boeing’s colossal Everett factory complex, said the small supplier is ready to produce more specialised tooling for its largest customer. But they are now in a type of limbo as they wait for Boeing’s MAX factory to start humming again.“It’s not like the floodgates have opened up yet,” she said.