World Bank Says Poverty is on the Rise in Lebanon

Taxi drivers block a road with their vehicles during a protest against the increasing prices of gasoline, consumer goods and the crash of the local currency, in downtown Beirut, Lebanon, Tuesday, Nov. 30, 2021. (AP Photo/Bilal Hussein)
Taxi drivers block a road with their vehicles during a protest against the increasing prices of gasoline, consumer goods and the crash of the local currency, in downtown Beirut, Lebanon, Tuesday, Nov. 30, 2021. (AP Photo/Bilal Hussein)
TT

World Bank Says Poverty is on the Rise in Lebanon

Taxi drivers block a road with their vehicles during a protest against the increasing prices of gasoline, consumer goods and the crash of the local currency, in downtown Beirut, Lebanon, Tuesday, Nov. 30, 2021. (AP Photo/Bilal Hussein)
Taxi drivers block a road with their vehicles during a protest against the increasing prices of gasoline, consumer goods and the crash of the local currency, in downtown Beirut, Lebanon, Tuesday, Nov. 30, 2021. (AP Photo/Bilal Hussein)

A World Bank report has said that in 2021 the number of poor Lebanese is expected to have increased by 1.5 million over baseline, and by 780,000 Syrian refugees.

At the international poverty line, the increase in poverty is found to be around 13 percentage points from baseline by the end of 2020, and 28 percentage points by end of 2021 for the Lebanese population.

For Syrian refugees, the increase is estimated at around 39 percentage points by end of last year, and 52 percentage points from baseline by end of 2021.

The World Bank data is consistent with the latest assessment conducted by the United Nations Economic and Social Commission for Western Asia (ESCWA), which concluded that the poverty rate in Lebanon doubled from 42 percent in 2019 to 82 percent of the total population in 2021.

According to the agency, nearly 4 million people live in multidimensional poverty, representing about one million households, of whom 77 percent are Lebanese.

The rise in poverty rates is proportional to the aggravation of inflation rates and the erosion of the purchasing power, as the price index, according to the Central Statistics Department, recorded an annual increase of 173.57 percent until the end of October.

The international institutions, which are closely following the exacerbation of the crises in Lebanon for the third year in a row, fear severe collapses caused by hyperinflation, which is further driven by the lifting of government subsidies and the continued devaluation of the local currency against the dollar.

This was confirmed by UNICEF field surveys, which showed that 8 out of 10 people in Lebanon live in poverty, 34% of whom are in extreme poverty.

Lebanon is also witnessing an unprecedented deterioration in the health care system, as hospitals suffer from a shortage of fuel, which leads to frequent power cuts, and a shortage of basic materials.

Prices of medications have also seen a significant increase after the government subsidy was restructured and reduced. This has made a large number of families unable to afford health care.

In this context, the report pointed out that while donor agencies, such as the United Nations High Commissioner for Refugees and the World Food Program, increased their assistance to refugees, this aid remained incommensurate with the deterioration of the value of the lira.

With the absence of reliable information on the poor, the World Bank does not expect recovery to take place imminently, but it stresses, on the other hand, that radical reforms and social protection programs help a lot in alleviating the impact of multiple crises.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
TT

Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
TT

IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
TT

World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.