French PM slams EU-US trade deal as ‘submission'
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Leaders
3 hours ago
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IMF Boosts Saudi Economic Growth Forecasts for 2025, 2026
The International Monetary Fund (IMF) upgraded Saudi Arabia's 2025 and 2026 economic growth forecasts on Tuesday, as oil price declines proved smaller than initially feared, driving this positive shift. Consequently, the IMF's latest World Economic Outlook Update reflects renewed confidence. The IMF now predicts that Saudi Arabia's economy will expand by 3.6% in 2025, which represents a 0.6 percentage point increase from its previous GDP estimate in April. Among the 30 countries highlighted in the IMF update, only China's forecast saw a larger increase. Additionally, the IMF has revised its oil price forecast for 2025, as It now anticipates that crude prices will decline by approximately 13.9% this year, a slight improvement from the earlier forecast of a 15.5% drop. This adjustment reflects ongoing changes in the global oil market. In June, Saudi Arabia raised its crude production for the second consecutive month, reaching 9.4 million barrels per day after the OPEC+ group of oil exporters began to unwind previous production cuts. Last year, these cuts reduced Saudi output to an average of 9 million barrels per day, the lowest level since 2010. Government Borrowing and Infrastructure Funding With oil accounting for nearly two-thirds of state revenue, lower production and subdued prices prompted the Saudi government to increase borrowing. This funding supports its ambitious infrastructure and diversification programs. Oil prices experienced a temporary rise due to the 12-day conflict between Israel and Iran. However, the IMF report notes that this geopolitics-induced increase has largely receded, shifting focus back to bearish fundamentals. Last October, the IMF projected a 4.6% increase in Saudi GDP for 2025. However, it revised these estimates downward in January and April due to falling oil prices and President Donald Trump's announcement of sweeping tariffs on April 2. Trump has since cut or paused some of these tariffs until 1 August, with tariff on Chinese imports has decreased from 24% to 17%, according to the IMF. These developments led the IMF to raise its global economic forecast to 3% from 2.8%, also increasing its estimate for 2026 to 3.1% from 3%. A sustained decline in the dollar has improved financial conditions in many emerging markets. Despite these higher estimates, the IMF report indicates that annual economic growth levels will remain below 2024's 3.3% and the pre-pandemic average of 3.7%. Risks Remain Elevated IMF Chief Economist Pierre-Olivier Gourinchas stressed Tuesday: 'Tariffs remain historically high, and global policy uncertainty persists.' He added that few nations have finalized comprehensive trade agreements. Consequently, risks to the global economy 'remain firmly to the downside.' The current trade environment, he concluded, 'remains precarious.' As Saudi Arabia navigates these challenges, its economic outlook shows signs of resilience amid global uncertainties. Short link : Post Views: 12
Leaders
3 hours ago
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Felix Joins Ronaldo at Al-Nassr: Saudi Pro League Secures Another Star
Portuguese forward Joao Felix has officially joined Saudi giants Al-Nassr on a two-year deal, where he will reunite with his countryman Cristiano Ronaldo, the club announced on Tuesday, marking a significant moment in Felix's career. At just 25 years old, Felix has already made headlines for his impressive moves in European football. He initially made a blockbuster transfer from Benfica to Atletico Madrid in 2019 for a staggering USD147.3 million, in one of the most expensive in football history. However, his journey since then has been a rollercoaster ride, with his fortunes declining over the years. A Journey Through Europe Felix soared after Benfica sold him to Atlético Madrid for €127.7 million in 2019, in one of the most expensive in football history. He subsequently embarked on various loan spells, including stints at Barcelona, AC Milan, and Chelsea. Despite these opportunities, he consistently struggled to surpass ten goals in any season since departing Benfica. However, this move offers him a revitalized platform alongside football's ultimate winner, Ronaldo. Furthermore, Saudi Arabia's growing league provides stability after turbulent European chapters. 'I'm here to spread joy. Let's win together,' Felix stated in a video posted on the club's X account. His enthusiasm reflects a fresh start and a desire to make an impact in the Saudi Pro League. Al-Nassr fans eagerly anticipate his contributions alongside Ronaldo, who has been a transformative figure in the league since his arrival. Looking Ahead Felix's contract with Al Nassr extends until 2027, providing him with a platform to revive his career as the combination of Felix and Ronaldo could create a formidable partnership, potentially leading Al-Nassr to new heights in both domestic and international competitions. As the Saudi Pro League continues to attract global talent, Felix's arrival signifies the league's growing prominence on the world stage. In conclusion, Joao Felix's move to Al-Nassr represents a pivotal moment in his career. With the support of Cristiano Ronaldo and the passionate Al-Nassr fanbase, Felix aims to reclaim his status as one of football's brightest stars. The upcoming season promises to be thrilling as fans eagerly await the duo's performances on the pitch. Short link : Post Views: 23
Asharq Al-Awsat
3 hours ago
- Asharq Al-Awsat
L'Oreal Posts 2.4% Rise in Second-Quarter Sales
L'Oreal reported a 2.4% rise in second-quarter sales on Tuesday, missing forecasts as growth in Europe slowed more than expected and demand at travel outlets in Asia was subdued. The French cosmetics group, whose brands include Maybelline makeup and CeraVe skincare, said sales in April-June totaled 10.74 billion euros ($12.38 billion), up 2.4% on a like-for-like basis from a year earlier, but undershooting the 2.9% growth seen in a Visible Alpha consensus estimate cited by Jefferies. Underlying growth, after stripping out the impact of phasing in a new IT system, was 3.7%, the company said. Growth in the global cosmetics market has slowed sharply in recent quarters from the highs of a post-pandemic surge, when inflation contributed to rising sales values. The sector, and in particular perfume that is predominantly produced in Europe, is also facing higher costs from US President Donald Trump's tariffs. L'Oreal CEO Nicolas Hieronimus said he planned to continue to lobby for an exemption to US tariffs on European cosmetics, even after Brussels agreed to a deal on Sunday that imposes a 15% tariff on US imports of EU cosmetics. "I don't think it's a good deal," he told Reuters in an interview. "We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because in the end it's going to be costly," he said. L'Oreal, which imports around 30% of its US sales, could raise prices and move more production to the country where it has four factories, but is waiting for further negotiations between Trump and other nations to be finalized before making decisions, he added. Analysts at Jefferies expect perfume sales in the US to slow in the second half after companies hike prices, though Hieronimus said L'Oreal's fragrance sales were currently growing by double-digit figures, compared to 7% for the broader market. There is "some pricing power on fragrances, but we have to also consider the elasticity of the demand," he added.
