FAO: Conflicts in Middle East Hamstring Efforts to Eradicate Hunger

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
TT

FAO: Conflicts in Middle East Hamstring Efforts to Eradicate Hunger

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)

Food and Agriculture Organization (FAO) called for increasing the cooperation and solidarity among the countries of the Near East and North Africa region to eradicate hunger, which affects about 40 million people in the region, according to official figures.

The organization also requested intensifying the efforts to end conflicts and achieve development after food insecurity levels in conflict countries were six times higher than that of more stable countries of the region.

FAO estimates that about 55.2 million people suffer from acute food insecurity in the region, confirming that 10.2 percent of the region's population suffer from malnutrition, while 12 percent suffer from food insecurity.

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed reiterated importance of establishing resilient and sustainable peace in the region is important for improving the well-being of the population.

Speaking to Asharq Al-Awsat, Ould Ahmed stressed that no country in the region can succeed on its own because the countries are linked, adding that it is necessary to work together to compensate "lost opportunities" in comprehensive development, including food security.

In Cairo, FAO launched its 2017 report "Regional Overview of Food Security and Nutrition in the Near East and North Africa (NENA)" which highlights in particular how an ongoing intensification of violence is opening a wide "hunger gap" between countries being affected by conflicts and those that are not.

The report indicated that in countries directly impacted by conflict, 27.2 percent of all people were chronically hungry, or undernourished, during the 2014-2016 period, which is six times higher than the share of the population that was undernourished in countries not affected by strife.

Meanwhile, "severe food insecurity", one of FAO's metrics to measure hunger, in conflict-affected countries now is double that in non-conflict countries.

In a region largely made up of developing, middle-income countries, chronic hunger typically affects less than 5 percent of their populations. Violence in some of these countries has seen the proportion of chronically hungry people in conflict zones increase to levels comparable with the world's poorest countries.

This will make realistic progress towards eradicating hunger in the region using traditional tools of policy-making difficult, unless decisive steps towards peace and stability are taken, the report cautions.

The report highlights several regional countries being particularly affected by conflict, with profound consequences for people's incomes and food security.

In Syria, violence has provoked a 67 percent reduction in the country's Gross Domestic Product (GDP) and severely undermined food security, as between 70 and 80 percent of Syrians now need humanitarian assistance, while 50 percent require food assistance.

In Iraq, the report stated that violence led to a 58 percent decline in GDP, with 30 percent of the population needing humanitarian assistance while 9 percent requires food assistance.

As for Yemen, the conflict led to a situation where 70 to 80 of the population in need of humanitarian assistance and 50 percent require food assistance.

Whereas in Libya, conflict is undermining food security with 6 percent of the population in need of food assistance, according to the report.

During the launch ceremony, FAO Assistant Director-General Ould Ahmed highlighted the pivotal importance of building resilience and sustaining peace in the Near East and North Africa region to improving peoples' well-being.

He pointed to "the growing need to implement long-term and comprehensive policies and practices to achieve Zero hunger by 2030," adding that "when countries in the region are suffering from an escalation of conflicts, the aim to tackle the region's deepest concerns of malnutrition, water scarcity and climate change becomes more challenging but at the same time more urgent".

Ould Ahmed concluded that only through improved cooperation and solidarity will the region be able to end conflicts and violence and get back to development.

FAO's report establishes a baseline for measuring future progress towards achieving the second goal of the SDG in the MENA region using the latest indicators for the SDG targets on hunger and food insecurity and malnutrition.

The report also identifies how conflict itself encumbers SDG monitoring with UN agencies gathering and assessing information on food security and nutrition status during conflict, but the data are not always complete and can be difficult to compare with peacetime data.

Other than statistics, the report focuses on the fundamental factors that improves food security and malnutrition: poverty reduction, economic growth, improvements in maternal and childhood nutrition and public health, increases in the quantity and quality of food and the cessation of violence.



Egypt’s Inflation Eases to 12.3% in November 

Boats sail on the Nile River in Cairo, Egypt, December 9, 2025. (Reuters)
Boats sail on the Nile River in Cairo, Egypt, December 9, 2025. (Reuters)
TT

Egypt’s Inflation Eases to 12.3% in November 

Boats sail on the Nile River in Cairo, Egypt, December 9, 2025. (Reuters)
Boats sail on the Nile River in Cairo, Egypt, December 9, 2025. (Reuters)

Egypt's annual urban consumer inflation slowed slightly to 12.3% in November after a month-on-month drop in food prices, statistics agency CAPMAS said on Wednesday, with inflation coming in lower than analyst expectations.

The median forecast in a poll of 14 analysts had been for inflation to climb to 13.1%. The urban consumer inflation rate in October was 12.5%.

Month-on-month, urban consumer prices rose by 0.3% in November, CAPMAS said. Food and beverage prices rose by an annual 0.7% but fell by a monthly 2.6%, it said.

The annual inflation rate has plunged from a record 38% in September 2023, helped by an $8 billion financial support package from the International Monetary Fund in March 2024.

Inflation has been in part fueled by an expanding money supply. M2 money supply grew by an annual 21.68% in October, central bank data showed.

The central bank's monetary policy committee left its overnight lending rate unchanged at its last meeting on November 20, but cut rates by 100 basis points in October and 200 points in August as inflation slowed.

The policy committee is next scheduled to review overnight interest rates at a meeting on December 25.


Egypt, Israel in Advanced Talks to Approve Israeli $35 Billion Gas Agreement

Israeli Energy Minister Eli Cohen and US Ambassador Mike Huckabee visiting the Leviathan platform in October. (Israeli Energy Ministry)
Israeli Energy Minister Eli Cohen and US Ambassador Mike Huckabee visiting the Leviathan platform in October. (Israeli Energy Ministry)
TT

Egypt, Israel in Advanced Talks to Approve Israeli $35 Billion Gas Agreement

Israeli Energy Minister Eli Cohen and US Ambassador Mike Huckabee visiting the Leviathan platform in October. (Israeli Energy Ministry)
Israeli Energy Minister Eli Cohen and US Ambassador Mike Huckabee visiting the Leviathan platform in October. (Israeli Energy Ministry)

Israel’s Ministry of Energy announced on Tuesday that negotiations over a natural gas supply agreement with Egypt have reached an “advanced stage,” though some issues remain unresolved.

Israel signed its largest-ever export deal in August to supply Egypt with up to $35 billion worth of natural gas from the Leviathan field.

After marathon discussions this week between the Leviathan partners and Israel’s Ministry of Energy and Infrastructure, a final agreement was reached that will allow the export of 130 BCM (billion cubic meters) to Egypt for $35 billion, the largest export agreement in the country's history.

Israel's Energy Minister Eli Cohen has said he was holding up approval for the gas deal to secure better commercial terms for the Israeli market, according to Reuters. On Tuesday, he confirmed that talks were still ongoing.

As part of the agreement, the Leviathan Partners, NewMed Energy, Chevron and Ratio Petroleum Energy, will commit to a guaranteed price for the domestic economy, to give priority to the Israeli economy, so that if there are any malfunctions in the Tanin, Karish or Tamar fields, it will transfer gas directly to the local economy.

One of the issues that senior Washington officials have been dealing with is ensuring that US energy major Chevron, which owns 39.66% of Leviathan, remains committed to the deal.

The partners are expected to make an investment decision to expand the Leviathan field infrastructure withing two weeks, once the Israeli government announces its final approval.


China’s Deflationary Strains Persist Even as Consumer Inflation Hits 21-Month High 

A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
TT

China’s Deflationary Strains Persist Even as Consumer Inflation Hits 21-Month High 

A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)

China's annual consumer inflation accelerated to a 21-month peak in November, mainly driven by food prices, while factory-gate deflation deepened, with underlying trends suggesting domestic demand remains weak and unlikely to recover in the near term.

The $19 trillion economy is on course to meet Beijing's growth target of "around 5%" for the year, buoyed by policy support and resilient goods exports. But economic imbalances have worsened this year as US President Donald Trump's global trade war has added to persistently soft consumer demand, putting the onus on policymakers to step up stimulus measures.

The consumer price index (CPI) rose 0.7% from a year earlier, National Bureau of Statistics data showed on Wednesday, matching a 0.7% expansion in a Reuters poll of economists. It had increased 0.2% in October.

The pickup in consumer inflation was mainly driven by rising food prices, which increased 0.2% year-on-year after dropping 2.9% in October.

But annual core inflation, which excludes volatile prices of food and fuel, was unchanged at 1.2% last month. On a monthly basis, CPI dipped 0.1% versus a 0.2% rise in October and a forecast gain of 0.2%.

Factory-gate deflation has also dragged on for three years in China, hobbling the world's second-biggest economy, even as the government has stepped up a campaign to curb industrial overcapacity and made calls on key sectors to scale back cut-throat competition. The latest data showed few signs of a recovery in the deflationary impulse.

The producer price index (PPI) fell 2.2% year-on-year in November, compared with a 2.1% fall in October and worse than the forecast for a 2.0% drop. The index was up 0.1% from October.

"China’s latest inflation figures indicate an economy that is warming up on the surface but is still battling deep-seated deflationary pressures underneath," said Zavier Wong, market analyst at investment firm eToro.

'WAVE OF POLICY SUPPORT' EXPECTED TO BOOST DEMAND

Most analysts expect deflationary pressures to linger next year.

Falling prices of everyday items underlined the challenge authorities face as firms, hobbled by low demand, try to lure buyers with discounts.

Total spending on fast-moving consumer goods such as packaged food and drinks, toilet paper and toothpaste in China grew 1.3% year-to-date, supported by a 2.4% decline in average selling price, according to a report by Bain & Co on Tuesday.

Analysts say the government needs to stabilize the faltering property sector, lower the youth unemployment rate and build a better social safety net to encourage spending to foster sustainable longer-term growth.

In the near term, however, more policy support is required to inject confidence, they said.

The country's top leaders have pledged to better balance supply and demand and signaled a shift toward supporting household consumption and restructuring the economy over the next five years.

The Politburo, a top decision-making body of the ruling Communist Party, vowed on Monday to keep expanding domestic demand and support the broader economy with more proactive policies in 2026.

"With recent attention being placed on getting 2026, the first year of the next five-year plan period, off to a good start, this will likely necessitate another wave of policy support in the early months of next year," said Lynn Song, chief economist for Greater China at ING.

The economist penciled in 20 basis points of rate cuts in 2026.