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."



Türkiye Says to Maintain Tight Monetary Policy, Fiscal Discipline

FILE PHOTO: People shop at a green market in Istanbul, Türkiye, October 22, 2025. REUTERS/Dilara Senkaya/File Photo
FILE PHOTO: People shop at a green market in Istanbul, Türkiye, October 22, 2025. REUTERS/Dilara Senkaya/File Photo
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Türkiye Says to Maintain Tight Monetary Policy, Fiscal Discipline

FILE PHOTO: People shop at a green market in Istanbul, Türkiye, October 22, 2025. REUTERS/Dilara Senkaya/File Photo
FILE PHOTO: People shop at a green market in Istanbul, Türkiye, October 22, 2025. REUTERS/Dilara Senkaya/File Photo

Türkiye will maintain its tight monetary policy and keep fiscal discipline in order to further lower inflation, Vice President Cevdet Yilmaz said on Saturday.

Turkish consumer price inflation leapt to a higher-than-expected 4.84% month-on-month in January, official data showed on Tuesday, driven in part by new year price adjustments and a jump in food and non-alcoholic drinks prices. Annual inflation dipped to 30.65%.

Speaking at an event in the southeastern province of Siirt, Yilmaz said ⁠the 45-point fall in inflation since May 2024 was not enough, adding the government was on a path to further lower consumer prices.

"We will maintain our tight monetary policy, we will keep our disciplined fiscal policies, we are determined to do this. But ⁠these are not enough either. On the other hand, we have to contribute to our battle with inflation through our supply-side policies," he added, according to Reuters.

Last month, Türkiye's central bank lowered its key interest rate by a less-than-expected 100 basis points to 37%, citing firming inflation, pricing behavior and expectations that threaten the disinflation process.

After a brief policy reversal early last year due to political turmoil, the bank's ⁠rate-cutting cycle resumed in July with a 300-basis-point cut, followed by more subsequent cuts.

The bank has eased by 1,300 points since 2024, when it held rates at 50% for most of the year to wrestle down inflation expectations.

Last month, the head of the Turkish Exporters Assembly told reporters late that Türkiye's extended period of tight economic policies had hurt manufacturers, with high interest rates and costs posing risks to the country's official $282 billion export target.


India, Malaysia Renew Pledges to Boost Trade and Collaboration

Malaysia's Prime Minister Anwar Ibrahim shakes hands with India's Prime Minister Narendra Modi in Putrajaya on February 8, 2026. (Photo by Hasnoor Hussain / POOL / AFP)
Malaysia's Prime Minister Anwar Ibrahim shakes hands with India's Prime Minister Narendra Modi in Putrajaya on February 8, 2026. (Photo by Hasnoor Hussain / POOL / AFP)
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India, Malaysia Renew Pledges to Boost Trade and Collaboration

Malaysia's Prime Minister Anwar Ibrahim shakes hands with India's Prime Minister Narendra Modi in Putrajaya on February 8, 2026. (Photo by Hasnoor Hussain / POOL / AFP)
Malaysia's Prime Minister Anwar Ibrahim shakes hands with India's Prime Minister Narendra Modi in Putrajaya on February 8, 2026. (Photo by Hasnoor Hussain / POOL / AFP)

India's Prime Minister Narendra Modi and his Malaysian counterpart Anwar Ibrahim renewed pledges on Sunday to bolster trade and explore potential collaborations in semiconductors, defense and other fields.

Modi is on a two-day visit to the Southeast Asian nation, his first since the two countries elevated ties to ⁠a comprehensive strategic partnership in August 2024.

Anwar said the partnership included deep collaborations in multiple fields, including trade and investments, food security, defense, healthcare and tourism.

"It's really comprehensive, and we believe ⁠that we can advance this and execute in a speedy manner with the commitment of our both governments," he told a press conference after hosting Modi at his official residence in the administrative capital Putrajaya.

Following their meeting, Anwar and Modi also witnessed the exchange of 11 cooperation agreements, including ⁠on semiconductors, disaster management and peacekeeping, Reuters reported.

Anwar said India and Malaysia would continue efforts to promote the use of local-currency settlement for cross-border activities and expressed hope that bilateral trade would surpass last year's $18.6 billion.

Malaysia will also support India's efforts to open a consulate in Malaysia's Sabah state on Borneo island, Anwar said.


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.