Washington's Struggling Economy Takes Another Economic Hit from the Government Shutdown

 A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Washington's Struggling Economy Takes Another Economic Hit from the Government Shutdown

 A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)

With the combination of the longest government shutdown, the mass firings of government workers and a fresh cut in federal food aid, the Capital Area Food Bank in Washington is bracing for the swell of people who will need its help before the holiday season.

The food bank, which serves 400 pantries and aid organizations in the District of Columbia, northern Virginia and two Maryland counties, is providing 8 million more meals than it had prepared to this budget year — a nearly 20% increase, The AP news reported.

The city is being hit “especially hard," said Radha Muthiah, the group's CEO and president, "because of the sequence of events that has occurred over the course of this year."

The nation's capital has been battered by a series of decisions by the Trump administration, from the layoffs of federal workers to the ongoing law enforcement intervention into the district. The added blow of the shutdown, which has furloughed workers and paused money for food assistance, is only deepening the economic toll.

The latest figures from the D.C. Office of Revenue Analysis do not account for workforce changes since the shutdown that began Oct. 1. But even the September jobs report shows that the seasonally adjusted unemployment rate hovers at 6%, compared with the most recent national rate of 4.3%, and has been the highest in the nation for months.

The economic woes appear to be reverberating politically. Democrat Abigail Spanberger won election Tuesday as Virginia's governor after focusing her campaign message on the effects of President Donald Trump's actions on the state’s economy.

The shutdown's long-term impact on the regional economy will be felt long after the government reopens, experts say.

Local businesses feeling the crunch Washington has the country's largest share of federal workers — about 20%, according to official figures — and roughly 150,000 federal employees call the area home. By Monday, hundreds of thousands of federal workers across the country will have missed at least two full paychecks because of the shutdown. Nationally, at least 670,000 federal employees are furloughed, while about 730,000 are working without pay, according to the Bipartisan Policy Center.

During the shutdown, the number of federal employees on Washington’s transit system each weekday has dropped by about one-quarter compared with ridership in September. Eateries that the Restaurant Association of Greater Washington says were already dealing with thin margins from seasonal declines and the fallout from Trump’s deployment of armed National Guard members on city streets are facing more challenges at a time when owners had hoped for a rebound.

Tracy Hadden Loh, a fellow at Brookings Metro, a think tank, said that going without paychecks is causing significant cash flow issues for federal workers, potentially leading to defaults on mortgages and student loans. For local businesses, especially those reliant on federal workers’ discretionary spending, it could exacerbate the impact during the high-sales October-December quarter.

“A lot of businesses rely on higher spending in Q4 in order to have a revenue positive year,” Loh said.

Small businesses are feeling the loss of that spending.

The crowd watching Liverpool's Premier League game last weekend would have been standing room only at The Queen Vic, a bar in Northeast Washington. But that was not the case, said Ryan Gordon, co-owner of the British pub.

“We still had seats for people, which means the bars around us who get our overflow got nothing,” Gordon said.

Business is down about 50% compared with what it was before the shutdown, he said. He considers himself lucky in the local restaurant scene because he owns the building and does not have to pay rent.

“To the extent to which discretionary spending by D.C. area households is limited, that could push a lot of local businesses into the red,” Loh said. The culmination of the shutdown, cut in SNAP benefits and layoffs are weighing heavy on households that have never sought help before, she added.

A family gets squeezed out of the region Thea Price was fired from her job at the U.S. Institute of Peace in March of this year, part of the wave of layoffs meant to shrink the size of the federal government. Her husband, a government contractor, also lost his job at a museum. Since then, they have lived on savings, Medicaid and SNAP.

Price, 37, recently went to a food pantry in Arlington, Virginia, for the first time recently. The shutdown halted funding for SNAP, after it took her months to get it, and the $500 payments she receives each month were set to stop. Virginia sent a partial payment but it was not enough, Price said. With her options to sustain herself and her family running out, Price is moving back to her hometown in the Seattle area.

“We can’t afford to stay in the area any longer and hope that something might pan out,” she said. “We’re just in a much different place than when these things started in March.”

At the Capital Area Food Bank in Northeast Washington, forklifts sped around in a controlled chaos, unloading trucks, moving food and preparing for a distribution set up for federal employees and contractors, and preparations are intensifying with the holiday season in mind. The organization is expecting to provide 1 million more meals this month than it had anticipated before the shutdown.

“We’re very focused obviously on the immediacy of all of these impacts today and getting food to those who need it," said Muthiah, the group's director. But she cautioned there were long-term implications to the unfolding crisis, with people tapping their savings and retirement funds to get by.

“People are borrowing against their futures to be able to pay for basic necessities today,” she said.



Morocco Targets $10 Billion AI Contribution to GDP by 2030

 People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
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Morocco Targets $10 Billion AI Contribution to GDP by 2030

 People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)

Morocco is targeting a 100 billion dirhams ($10 billion) boost to its gross domestic product from artificial intelligence by 2030, the minister in charge of digital transition said on Monday, as the country steps up its investment in training programs, sovereign data centers and cloud services.

Morocco, whose current GDP comes to around $170 billion, plans to invest in artificial intelligence centers linked ‌to universities and ‌the private sector, and ‌to ⁠integrate AI solutions ‌into public administration and industry, Minister Amal El Fallah Seghrouchni told a conference in Rabat.

The GDP boost would largely come from expanding domestic data-processing capacity through sovereign data centers, scaling up cloud and fiber-optic infrastructure, and building an AI-skilled workforce ⁠to support the deployment of AI solutions across industry ‌and government, she said.

Under the ‍plan, Morocco expects ‍to create 50,000 AI-related jobs and train ‍200,000 graduates in AI skills by 2030.

As part of that effort, Seghrouchni on Monday signed a partnership agreement with France's Mistral AI to support the development of generative AI tools in Morocco.

"We want to turn Morocco into ⁠a future excellence hub in AI and data science," Seghrouchni said.

The government is also preparing legislation governing artificial intelligence, according to the minister.

Morocco has earmarked 11 billion dirhams ($1.2 billion) for its digital transformation strategy for 2024–2026, covering AI initiatives and the expansion of fiber-optic infrastructure. It is separately planning a 500-megawatt, renewable energy-powered data center in the southern city of Dakhla ‌to boost the security and sovereignty of national data storage.


Saudi Arabia Consolidates Its Position Among the World’s Top 20 Economies in 2026

Riyadh, Saudi Arabia (Reuters) 
Riyadh, Saudi Arabia (Reuters) 
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Saudi Arabia Consolidates Its Position Among the World’s Top 20 Economies in 2026

Riyadh, Saudi Arabia (Reuters) 
Riyadh, Saudi Arabia (Reuters) 

As the global financial landscape is reshaped by accelerating geopolitical shifts, economic data show that Saudi Arabia has firmly consolidated its place among the world’s 20 largest economies in 2026.

This standing reflects the success of Vision 2030 in diversifying income sources and expanding gross domestic product. The Kingdom ranks 19th globally, outperforming several long-established economies, with GDP projected at $1.316 trillion.

According to data based on International Monetary Fund reports released in October 2025, the global economy is expected to reach $123.6 trillion in 2026. Economic power remains highly concentrated, with the world’s five largest economies accounting for more than 55 percent of total global output:

United States: Continues to lead with GDP of $31.8 trillion, supported by a resilient labor market and sustained consumer spending, with real growth projected at 2.1 percent.

China: Ranks second with an estimated GDP of $20.7 trillion, despite demographic challenges and its transition toward advanced manufacturing.

Germany: Retains Europe’s top position in third place with GDP of $5.3 trillion, despite pressure from high energy costs.

India: The “rising star,” securing fourth place globally with GDP of $4.5 trillion and posting the fastest growth among major economies at 6.2 percent.

Japan: Slips to fifth place with GDP of $4.4 trillion, facing demographic headwinds despite strengths in robotics and automotive industries.

Linked to recent IMF assessments, Saudi Arabia stands out as a key pillar in what experts describe as a new “economic geography.” While many emerging markets have struggled with interest-rate volatility and inflation distortions in advanced economies - particularly the United States - the Kingdom has demonstrated a strong ability to absorb external shocks.

The IMF views Saudi Arabia’s large-scale investments in high-potential sectors not merely as a driver of domestic growth, but as part of a broader global shift in capital flows toward destinations offering stability and long-term attractiveness.

The data also underscore the strong performance of other economies on the list. Brazil ranks 11th with GDP exceeding $2.2 trillion, while Türkiye and Indonesia continue to compete closely in 16th and 17th place, respectively.

 

 


Saudi Industrial Production Index Records Highest Growth Since Early 2023

A facility operated by the Saudi International Petrochemical Company (Sipchem). (Sipchem)
A facility operated by the Saudi International Petrochemical Company (Sipchem). (Sipchem)
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Saudi Industrial Production Index Records Highest Growth Since Early 2023

A facility operated by the Saudi International Petrochemical Company (Sipchem). (Sipchem)
A facility operated by the Saudi International Petrochemical Company (Sipchem). (Sipchem)

Saudi Arabia’s Industrial Production Index posted a year-on-year increase of 10.4 percent in November 2025, compared with the same month a year earlier, marking its highest growth rate since the beginning of 2023, according to preliminary data. On a monthly basis, however, the index declined by 0.7 percent.

Data released by the General Authority for Statistics on Sunday showed that the index for oil-related activities rose by 12.9 percent year on year in November, while the index for non-oil activities increased by 4.4 percent compared with the same month of the previous year.

Month on month, the index for oil activities recorded a rise of 0.5 percent, while the non-oil activities index fell by 3.4 percent compared with October 2025.

In November, the sub-index for mining and quarrying activities climbed 12.6 percent year on year, driven by higher oil production during the month. Saudi oil output rose to 10.1 million barrels per day, compared with 8.9 million barrels per day in November last year.

On a monthly basis, the mining and quarrying sub-index also increased by 0.5 percent.

The manufacturing sub-index recorded an annual rise of 8.1 percent, supported by a 14.5 percent increase in the manufacture of coke and refined petroleum products, as well as a 10.9 percent rise in the manufacture of chemicals and chemical products.

In monthly terms, preliminary results showed the manufacturing sub-index edged up by 0.3 percent, buoyed by a 0.3 percent increase in the manufacture of coke and refined petroleum products and a 1.0 percent rise in the manufacture of chemicals and chemical products.

As for other activities, the sub-index for electricity, gas, steam and air-conditioning supply fell by 4.3 percent year on year. In contrast, the sub-index for water supply, sewerage, waste management and remediation activities rose by 10.2 percent compared with November last year.

Compared with October 2025, the electricity, gas, steam and air-conditioning supply sub-index dropped sharply by 28.6 percent, while the water supply, sewerage, waste management and remediation activities sub-index declined by 3.1 percent.