BADEN-BADEN: Governments are slacking the pace of needed economic reforms amid waning popular support even as global growth slows, the Organization for Economic Co-operation and Development (OECD) warned Friday.
There had been progress in reducing unemployment, the rich nations’ club conceded in its annual “Going for Growth” report, unveiled at a G-20 gathering of top economies’ finance ministers in the western German spa town of Baden-Baden.
But too many, including women, migrants and young people remain excluded from the benefits of a tentative economic recovery in many advanced and emerging economies, the OECD experts said.
“In many countries what we are seeing is a slow growth track,” OECD Secretary-General Angel Gurria told journalists at the G-20 gathering.
“Poor growth outcomes combined with rising inequality, falling trust, stagnant incomes are contributing to a backlash against globalization... which is bringing a rise in populist and protectionist policies,” he continued. “It is precisely because of this context that ambitious reforms are needed, to escape the low growth trap.”
The growing political potency of inequality prompted the OECD to offer for the first time advice to countries on making growth “inclusive,” alongside its long-standing productivity and employment goals.
Reforms had visibly slowed, both in countries that had made significant progress in recent years — such as Mexico, Ireland and Spain — and others like Colombia, Italy and Sweden, already among the “least active” reformers, the economists found.
While more countries had moved to lift barriers to women working and cut taxes on lower-paid workers, many focused on one area to the exclusion of complementary ones, they said.
Looking ahead, the OECD recommends improving productivity by broadening access to education, training and jobs, freeing up competition, and increasing investment in public infrastructure.
Meanwhile, social safety nets should be used to reduce income inequality, the experts advised.
“Growing inequality becomes an obstacle to growth,” said OECD chief. “It is not just morally wrong, it is ethically wrong, it is politically very explosive, but it is also economically very inefficient.”
Gurria, a former finance minister of Mexico, insisted that gatherings like the G-20 remain relevant even as the new White House administration under Donald Trump challenges a tried-and-tested multilateral global order.
Inequality stokes populism: OECD chief
Inequality stokes populism: OECD chief
Closing Bell: Saudi main index closes higher at 10,596
RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks.
Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion.
Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77.
Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46.
Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.
On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31.
Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.
On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom.
The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.
The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74.
Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT.
The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.
MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.
