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Saudi Arabia Boosts Int’l Economy Protection, Supports Strategic Partnerships

Minister of Economy and Planning Faisal Bin Fadel Al-Ibrahim, Asharq Al-Awsat
Minister of Economy and Planning Faisal Bin Fadel Al-Ibrahim, Asharq Al-Awsat
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Saudi Arabia Boosts Int’l Economy Protection, Supports Strategic Partnerships

Minister of Economy and Planning Faisal Bin Fadel Al-Ibrahim, Asharq Al-Awsat
Minister of Economy and Planning Faisal Bin Fadel Al-Ibrahim, Asharq Al-Awsat

Saudi Arabia’s Minister of Economy and Planning Faisal al-Ibrahim affirmed on Saturday that the Kingdom is one of the world’s most important economic powers and is actively contributing to sustainable growth and protecting the global economy.

The Kingdom’s role, according to al-Ibrahim, is aiding humanity in confronting climate change and empowering people to shape promising futures.

“The Kingdom continues its pioneering role in expanding international cooperation and supporting strategic partnerships in a way that increases communication and activates the exchange of ideas and experiences because of its importance in drawing up policies that aim to develop effective solutions to the challenges facing the world,” said al-Ibrahim.

“These have a direct impact on achieving the Kingdom’s goals represented in Vision 2030 and enhancing its competitive capabilities,” he added in a statement on the occasion of the Kingdom’s participation in the G20 Leaders’ Summit in Italy.

Also, al-Ibrahim addressed the Economy and Planning Ministry’s role in the work of the Development Working Group under the Italian Presidency.

He pointed out that the ministry had participated in negotiations and conducted dialogue sessions as a member of the Troika and completed work on the recommendations and initiatives emanating from the Kingdom’s presidency in 2020.

The outputs of the Development Working Group focused on the potential of innovative financing instruments such as blended finance mechanisms, investment guarantees, sustainable development goals, green bonds, and support for the implementation of integrated national finance frameworks (INFFs).

Al-Ibrahim noted that the Group’s work highlighted the importance of the financial track to drive sustainable development financing, based on what was presented under the presidency of the Kingdom and previous presidencies.

The minister indicated that this year, the Group discussed communication between urban and rural areas and the role of intermediate cities as key actors for sustainable development and the localization of sustainable development goals.

The minister added that the Group worked to assess the roles of these actors in responding to the pandemic.

Additionally, the Group addressed present weaknesses to ensure a more sustainable and inclusive recovery.

Al-Ibrahim also noted that the Group paid attention to the role of cities, strengthening rural-urban linkages, and enabling rural families to diversify their sources of income.

It is noteworthy that the minister participated in a joint ministerial meeting of foreign and development ministers within the Italian presidency of G20.

The meeting focused on sustainable development goals, strengthening efforts to achieve global food security, obtaining the necessary political support to take concrete measures to confront the food crises arising from the coronavirus pandemic, and the measures that the Group will take to support trade and investment in the world.

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UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
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UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)

The United Nations on Thursday forecast slower global economic growth this year and next, pointing to the impact of the surge in US tariffs and increasing trade tensions.

UN economists also cited the volatile geopolitical landscape and threats of rising production costs, supply chain disruptions and financial turbulence.

“These days, there’s so much uncertainty in the air,” said Shantanu Mukherjee, director of the Economic Analysis and Policy Division at the UN Department of Economic and Social Affairs.

“It’s been a nervous time for the global economy,” he told reporters while launching the midyear forecast. “In January this year, we were expecting two years of stable — if subpar — growth, and since then, prospects have diminished, accompanied by significant volatility across various dimensions.”

The UN is now forecasting global economic growth of 2.4% this year and 2.5% next year — a drop of 0.4 percentage point each year from its projections in January. Last year, the global economy grew 2.9%.

Mukherjee said the slowing is affecting most countries and regions, but among the most severely hit are the poorest and least developed countries, whose growth prospects have fallen from 4.6% to 4.1% just since January.

“That translates into a loss of billions in economic output for the most disadvantaged of countries,” which are home to over half the global population living in extreme poverty, he said.

The world’s developed and developing countries also are projected to suffer, according to the UN report.

Economic growth in the United States is now projected to drop significantly, from 2.8% last year to 1.6% this year, it said, noting that higher tariffs and policy uncertainty are expected to weigh on private investment and consumption.

China’s growth is expected to slow to 4.6% this year from 5% in 2024 as a result of subdued consumer sentiment, disruptions in its export-oriented manufacturing companies, and continuing challenges in its property sector, the report said.

The European Union’s growth is forecast to remain the same this year as it was last year — just 1%, the report said, citing weaker net exports and higher trade barriers. The United Kingdom’s economic growth of 1.1% last year is projected to fall to 0.9%.

Weakening trade, slowing investments and falling commodity prices are also forecast to erode growth in other major developing economies, including Brazil, Mexico and South Africa.

India will remain one of the world’s fastest-growing large economies, but the UN forecast said its growth is expected to drop from 7.1% in 2024 to 6.3% this year.

The UN’s global economic growth forecast is lower than the International Monetary Fund’s.

On a more positive note, Mukherjee said the UN is expecting that bilateral negotiations will lead to lower tariffs, although he said they won’t return to the levels before US President Donald Trump’s February announcement.

Nonetheless, Mukherjee said, resolving uncertainties would help individuals and businesses move forward with economic decisions and that would have a positive impact on the global economy.