WASHINGTON: A majority of business economists foresee no recession in the United States within the next 12 months but do predict a slowdown in growth this year.
A survey by the National Association for Business Economics finds that nearly two-thirds of respondents think the economy will keep growing this year in what would become the longest expansion on record in US history at more than 10 years.
Still, the survey results being released Monday reflect a collective belief that some of the economy’s momentum is fading. Compared with the NABE’s previous survey in October, for example, a smaller proportion of economists said their companies’ sales were rising. And fewer expect profit growth to increase. Corporate investments in new equipment has also cooled.
Most of the economists say President Donald Trump’s economic policies have done little to affect their businesses’ plans. An overwhelming majority — 84 percent — say Trump’s 2017 tax cuts, which sharply reduced the burden on corporations, failed to influence their companies’ hiring or investment outlooks. A nearly equal proportion of respondents (77 percent) indicated that Trump’s trade policies haven’t affected their companies’ plans for hiring, pricing or investment.
The results fit a broader pattern. The economy appears to be slowing as a dose of stimulus from Trump’s tax cuts has been fading. Job growth has been steady, but the stock market has stumbled and global growth has deteriorated.
Home sales have weakened, and 2019 began with a blast of nervous uncertainty as the federal government endured what became a 35-day partial shutdown.
The NABE survey, which has been conducted quarterly since 1982, was based on responses from 106 economists who are employed by companies or industry trade associations.
Survey of economists: US recession unlikely within 12 months
Survey of economists: US recession unlikely within 12 months
- The survey results being released Monday reflect a collective belief that some of the economy’s momentum is fading
- Most of the economists say President Donald Trump’s economic policies have done little to affect their businesses’ plans
Arab Summit prepared to address key economic, social challenges in Bahrain
RIYADH: Critical economic and social challenges facing the Middle East took center stage during the preparatory meeting for the 33rd Arab Summit held in Bahrain’s capital, Manama.
The session, which took place on May 12, tackled issues that will be submitted to the upcoming summit, which is scheduled to take place for the first time in Bahrain on May 16.
Saudi Finance Minister Mohammed Al-Jadaan headed the Kingdom’s delegation to the ministerial meeting, which included representatives of member states of the League of Arab States and a number of specialists from its general secretariat.
Al-Jadaan affirmed Saudi Arabia’s pride in hosting the 32nd Regular Session of the Arab Summit, which concluded with the issuance of the Jeddah Declaration, which encompasses numerous initiatives aimed at enhancing collective efforts across economic, agricultural, cultural, and educational domains.
Saudi Arabia’s Asir region partners with Almosafer to boost tourism potential
RIYADH: Saudi Arabia’s Asir region is edging closer to becoming a premier global tourism destination, thanks to a new partnership with fellow Kingdom-based travel company Almosafer.
Signed with the area’s development authority, the memorandum of understanding aims to leverage the firm’s expertise and diverse range of travel services across its business verticals to drive tourism in the region and curate inspired experiences for visitors, according to a statement.
This move falls in line with both parties’ goal to establish Asir, situated along the Red Sea coast, as a year-round tourism destination for local and global visitors alike.
“Our partnership with Almosafer comes at a significant moment as we are accelerating efforts to enhance the Asir region’s visibility and appeal to domestic and international travelers as a year-round-destination,” said Hashim Al-Dabbagh, acting CEO of Asir Development Authority.
He added: “Through comprehensive training, collaborative marketing, and the integration of Asir’s activities and offerings onto Almosafer’s digital platforms, we aim to showcase the region’s exceptional offerings to the wider world.”
Moreover, Almosafer’s geographical reach and experience in the Kingdom will be pivotal in introducing regional and global tourists to the region.
IFC investments in Egypt near $9bn, says minister
RIYADH: Egypt is emerging as a pivotal player for the International Finance Corp., with investments nearing $9 billion, announced a top minister.
Inaugurating the “IFC Day in Egypt” event, Minister of International Cooperation Rania Al-Mashat underscored that this substantial influx of capital underscores the nation’s stature as one of the foremost countries of operations for the organization within the broader framework of collaboration with the World Bank, a release highlighted.
From July 2023 to May 2024, Egypt witnessed a notable infusion of $900 million in investments from the IFC, marking a testament to the sustained momentum of financial inflows into the country’s economic landscape.
Al-Mashat further declared that in adherence with the directives of President Abdel Fattah El-Sisi, Egypt remains steadfast in its commitment to bolstering the private sector as a driving force in advancing development endeavors.
Middle Eastern airports embrace sustainability and tech amidst rising passenger expectations
RIYADH: Middle Eastern airports are prioritizing sustainability, eco-friendly infrastructure and renewable energy to combat climate challenges, a recent study showed.
In its latest report, Bain & Co., a management consulting firm, also underscored the rising demand for seamless and personalized travel experiences driven by evolving passenger expectations.
To address this, regional airports are also heavily investing in digital solutions that offer real-time communication and integrated mobility platforms.
Discussing the growing emphasis on sustainability initiatives among the region’s airports, Akram Alami, Middle East head of utilities, aviation, and sustainability & responsibility practices at Bain & Co., said: “They aim to reduce their environmental impact through efforts like achieving carbon-neutral certification, designing eco-friendly infrastructure, and adopting renewable energy.”
He added: “These initiatives are part of a broader strategy to address climate change and meet passenger expectations for more sustainable travel options.”
The report also highlighted that airports in the region face several obstacles while implementing these sustainable practices, including high expenses for renewable technologies and regulatory issues.
“Key challenges include high initial costs for green technologies, regulatory constraints, and the need for stakeholder alignment. Technological limitations and the need to integrate sustainability into existing infrastructure without disrupting operations also pose significant challenges,” noted Ilya Yamshchikov, associate partner at Bain & Co. Middle East.
The report stated that other factors driving the growth of airports in the region include the adoption of technology and the commitment to meeting passenger expectations.
Moreover, digital biometric screening and contactless services are streamlining security and boarding processes, it added.
The US-based firm further pointed out that airports are also leveraging technologies like computed tomography baggage scanners and body scanners to expedite security checks without compromising safety.
“These trends are expected to continue shaping the development of airports, leading to more efficient and passenger-centric facilities. They will significantly transform airline operations and the overall travel experience, making air travel more accessible, enjoyable and sustainable for future generations,” said Mauro Anastasi, partner and a member of the Aviation practice at Bain & Co.
In December 2023, Saudi Arabia’s Riyadh Airports Co. partnered with Cognizant to bolster its digital capabilities in finance, human resources, procurement, and planning, with the goal of enhancing traveler experience.
Moreover, in November 2023, Abdulaziz Al-Duailej, president of Saudi Arabia’s General Authority of Civil Aviation, stated that the Kingdom is working to finalize a comprehensive systematic plan to address environmental sustainability in the aviation sector.
In terms of passenger expectations, a report released by GACA in April revealed that all airports in Saudi Arabia that received passenger complaints in March resolved them on time.
Saudi Arabia leads GCC IPO market with 594% surge in proceeds: Markaz
RIYADH: Saudi Arabia led the Gulf Cooperation Council initial public offering market with an annual 594 percent surge in the first quarter of 2024, according to Kuwait Financial Centre.
A report issued by the organization, commonly known as Markaz, detailed the dynamic landscape of IPO activities across the GCC region, revealing significant shifts and trends in investment flows.
The report highlighted that Saudi Arabia has demonstrated considerable growth, raising a total of $503 million from eight offerings.
Despite the Kingdom’s activity, the overall GCC region witnessed a downturn in IPO activity in terms of value, with total proceeds amounting to $931 million through nine offerings in the first three months of 2024 – a 73 percent year-on-year decline.
The same period of 2023 saw issuers raise $3.5 billion through 12 offerings.
For the first quarter of 2024, Saudi Arabia capturing 54 percent of the total proceeds in the GCC, while the UAE accounted for the remaining 46 percent, which came from just one offering – signaling an 87 percent decrease compared to the same period last year.
Other countries in the group did not witness any new listings activity during this quarter.
On a sectoral basis, transportation emerged as the frontrunner, driven by Dubai-based Parkin Co.’s offering, which raised $429 million, constituting nearly 46 percent of total GCC IPO proceeds during the period.
Additionally, Saudi Modern Mills Co.’s listing in the food and beverage sector garnered over $314 million, contributing 34 percent to the total proceeds.
Following these were IPOs from the pharmaceutical, healthcare equipment, and materials sectors, accounting for 14 percent, 2 percent, and 1 percent, respectively.
Exchange-wise, $445 million came from listings on the Kingdom’s Main Market, with $57 million on the Nomu-Parallel Market.
Meanwhile, the UAE markets accounted for the remaining 46 percent, with $429 million listed on Dubai’s exchange, showcasing the vibrancy of both countries’ capital markets.
