Job Losses and Pay Cuts as Lebanon's Economy Crumbles

After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
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Job Losses and Pay Cuts as Lebanon's Economy Crumbles

After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)

Weeks into a protest movement partly driven by a collapsing economy, Lebanese interior architect Laeticia Nicolas was called in by her boss and told she was fired.

"There had been fewer and fewer projects for a year," said the 28-year-old, who since October 17 has taken part in unprecedented anti-government protests sweeping the country.

"Before the revolution began, they warned us they'd be paying just half our salaries in exchange for reducing working hours," she said, according to AFP.

But as the protests gained momentum, he downsized his team. Nicolas was informed of the bad news at the end of the month when she received her salary.

"It's not because of the revolution, but it may well have accelerated things," she said.

After years of political turmoil, the Lebanese economy is in a sharp downturn, banks have restricted access to dollars while prices have risen.

Amid the crisis, thousands of Lebanese say their jobs are under threat.

Activists have denounced what they call illegal lay-offs and urged the labor ministry to intervene.

Some people, like Nicolas, have lost their jobs altogether; others have been told to work part-time for a fraction of their original salary.

A woman who asked to be identified as "Mary" was among those forced to take a pay cut. For 16 years she has been a saleswoman at an upper-end women's clothing shop, and now she fears her job may be on the line.

"Since the start of November we've been taking two extra days off a week," said the 46-year-old, who asked that her real name not be used in order to protect her job.

"They said they would have to pay us half our salaries."

'We fear the worst'

She said that she and around 20 colleagues did not object "because we fear the worst, and no one is going to risk losing their job in such circumstances".

"It's been bad for months. In recent days, the shop takings haven't even been 50,000 Lebanese pounds", or around 30 euros, Mary said.

Economic growth in Lebanon has been battered by repeated political deadlock in recent years, compounded by the eight-year war in neighboring Syria.

Successive cabinets have failed to implement desperately needed reforms to redress a floundering economy heavily reliant on tourism and services.

The World Bank projected negative growth of 0.2 percent in Lebanon for 2019, but now warns the recession could be even worse.

It has urged that a new cabinet be swiftly formed, after the government stepped down less than two weeks into the protests, to avoid more Lebanese becoming poor.

Around a third of Lebanese live in poverty, and that figure could soon rise to half, according to the World Bank.

Unemployment, already above 30 percent for young people, would also go up, it said.

A group of Lebanese banks and private businesses also warned of bleak times ahead.

"Thousands of companies are threatened with closure, and tens of thousands of employees and workers risk losing their jobs," they said.

The union of restaurant and bar owners has said 265 establishments have closed already, and that figure could reach 465 by the end of the year.

Begging for payment

In the month before the protests, banks began restricting access to dollars, sparking a greenback liquidity crisis.

Bilal Dandashli, who heads a small road safety equipment company he founded in the 1990s, said he was struggling.

"We can no longer import supplies from abroad," he said.

The Lebanese pound is pegged at around 1,500 pounds to the dollar, and both are used interchangeably in everyday transactions.

But caps on dollar withdrawals have forced people to resort to moneychangers, sending the unofficial exchange rate soaring to more than 2,200.

To make matters worse, Dandashli said customers were also not paying their debts.

"It's like begging for our own money," he said.

"One person owes me $20,000, and today he turns up with a cheque for $1,000. How are we supposed to continue like this?"

Dandashli says he fears for the future of his 10 employees, whom he has continued to pay in full despite no work for two months.

"I could hang on for another few months or close. But it would break my heart to see everything I've built up over the years collapse."

In the latest sign of things getting worse, petrol station owners began an open-ended strike on Thursday because of losses caused by the plunging pound against the dollar.

Nicolas, the newly unemployed interior architect, is now applying for jobs and considering a proposal to work in Kuwait.

"If travelling is the only option, I'll have to take it," she said through tears.

"I'll start over. Just not here, as here there is no hope."



Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
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Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)

Syria and Saudi Arabia signed deals Saturday that include a joint airline and a $1-billion project to develop telecommunications, officials said, as Syria seeks to rebuild after years of war.

The new authorities in Damascus have worked to attract investment and have signed major agreements with several companies and governments.

Syrian Investment Authority chief Talal al-Hilali announced a series of deals including "a low-cost Syrian-Saudi airline aimed at strengthening regional and international air links".

The agreement also includes the development of a new international airport in the northern city of Aleppo, and redeveloping the existing facility.

Hilali also announced an agreement for a project called SilkLink to develop Syria's "telecommunications infrastructure and digital connectivity".

Syrian Telecommunications Minister Abdulsalam Haykal told the signing ceremony that the project would be implemented "with an investment of around $1 billion".

For decades, Syria was unable to secure significant investments because of Assad-era sanctions.

But the United States fully removed its remaining sanctions on Damascus late last year, paving the way for the full return of investments.

Syria and Saudi Arabia also inked an agreement on water desalination and development cooperation on Saturday.

At the ceremony, Saudi Investment Minister Khalid Al-Falih announced the launch of an investment fund for "major projects in Syria with the participation of the (Saudi) private sector".

The deals are part of "building a strategic partnership" between the two countries, he said.

Syria's Hilali said the agreements targeted "vital sectors that impact people's lives and form essential pillars for rebuilding the Syrian economy".

Syria has begun the mammoth task of trying to rebuild its shattered infrastructure and economy.

In July last year, Riyadh signed investment and partnership deals with Damascus valued at $6.4 billion to help rebuild the country's infrastructure, telecommunications and other major sectors.

A month later, Syria signed agreements worth more than $14 billion, including investments in Damascus airport and other transport and real estate projects.

This week, Syria signed a preliminary deal with US energy giant Chevron and Qatari firm Power International to explore for oil and gas offshore.


India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
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India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)

Indian Prime Minister Narendra Modi on Saturday hailed an interim trade agreement with the United States, saying it would bolster global growth and deepen economic ties between the two countries.

The pact cuts US "reciprocal" duties on Indian products to 18 percent from 25 percent, and commits India to large purchases of US energy and industrial goods.

US President Donald Trump, while announcing the deal Tuesday, had said Modi promised to stop buying Russian oil over the war in Ukraine.

The deal eases months of tensions over India's oil purchases -- which Washington says fund a conflict it is trying to end -- and restores the close ties between Trump and the man he describes as "one of my greatest friends."

"Great news for India and USA!" Modi said on X on Saturday, praising US President Donald Trump's "personal commitment" to strengthening bilateral ties.

The agreement, he said, reflected "the growing depth, trust and dynamism" of their partnership.

Modi's remarks came hours after Trump issued an executive order scrapping an additional 25 percent levy imposed over New Delhi's purchases of Russian oil, in a step to implement the trade deal announced this week.

Modi, who has faced criticism at home about opening access of Indian agricultural markets to the United States and terms on oil imports, did not mention Russian oil in his statement.

"This framework will also strengthen resilient and trusted supply chains and contribute to global growth," he said.

It would also create fresh opportunities for Indian farmers, entrepreneurs and fishermen under the "Make in India" initiative.

In a separate statement, Commerce Minister Piyush Goyal said the pact would "open a $30 trillion market for Indian exporters".

Goyal also said the deal protects India's sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry and milk.

Other terms of the agreement include the removal of tariffs on certain aircraft and parts, according to a separate joint statement released Friday by the White House.

The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years.

The shift marks a significant reduction in US tariffs on Indian products, down from a rate of 50 percent late last year.

Washington and New Delhi are expected to sign a formal trade deal in March.


Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
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Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth

Gold rebounded on Friday and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.1% to $4,916.98 per ounce by 09:31 a.m. ET (1431 GMT), recouping losses posted during a volatile Asia session that followed a fall of 3.9% on Thursday. Bullion was headed for a weekly gain of about 1.3%.

US gold futures for April delivery gained 1% to $4,939.70 per ounce.

The US dollar index fell 0.3%, making greenback-priced bullion cheaper for the overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran and the US started high-stakes negotiations via Omani mediation on Friday to try to overcome sharp differences over Tehran's nuclear program.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver rose 5.3% to $74.98 an ounce after dipping below $65 earlier, but was still headed for its biggest weekly drop since 2011, down over 10.6%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 3.2% to $2,052 per ounce, while palladium gained 4.9% to $1,695.18. Both were down for the week.