Latest news with #economic expansion
Zawya
4 days ago
- Business
- Zawya
Boosting Growth with Inclusive Financial Development Crucial to Unlock Angola's Poverty Alleviation Efforts
Angola recorded the highest economic expansion since 2014, with real Gross Domestic Product (GDP) growth reaching 4.4% in 2024. According to the latest edition of the Angola Economic Update (AEU) published by the World Bank Group (WBG) today, titled Boosting Growth with Inclusive Financial Development, this growth was driven by the oil sector's recovery and diamond extraction, along with strong expansion in commerce and fishing. The report highlights that despite a rebound in economic activity in 2024, Angola still struggles with the lasting impacts of prolonged stagnation. From 2016 to 2020, the economy contracted by approximately 10.4%, averaging a 2.1% annual decline. This sluggish growth stemmed from structural challenges and heavy dependence on the oil sector, making it susceptible to global price fluctuations. Real GDP growth is projected at an average of 2.9% from 2025 to 2027, but this is unlikely to significantly improve living standards. Increased global uncertainty, including falling oil prices, emphasizes the need for Angola to diversify its economy and reduce reliance on oil. 'The Angolan economy is in urgent need of establishing a consistent pathway toward robust growth to address nearly a decade of stagnation and to improve conditions for poverty alleviation. There is optimism that the comprehensive economic reforms currently being implemented by the government will produce positive outcomes and unlock the country's potential,' said Juan Carlos Alvarez, World Bank Country Manager for Angola. 'The country must intensify its support for key sectors that can significantly contribute to the essential process of economic diversification. A deeper analysis of these sectors and the needed structural reforms are discussed in the Angola Country Economic Memorandum, also published today,' he added. The AEU emphasizes the importance of promoting inclusive financial development in Angola to address the existing significant inequality and exclusion, particularly in rural areas where access to formal banking services is limited. Women and older adults are particularly affected. Compared to other countries in the region, Angolan households have less access to credit, savings, and digital financial services. Advancing financial inclusion can boost economic participation and resilience, leading to sustainable growth and poverty reduction. Access to banking, credit, and insurance empowers small businesses, farmers, and entrepreneurs, enhancing productivity and job creation. Moreover, financial inclusion can reduce income inequality by providing marginalized groups with opportunities to build assets and improve their well-being. The report highlights that implementing key reforms can create a more robust and inclusive financial sector in Angola, essential for diversifying the economy and fostering growth and job creation. It emphasizes the need for broader access to financial services beyond Luanda, especially as Angola focuses on economic activities in the Lobito Corridor and develops secondary cities. Additionally, the rise of digital banking and mobile payments offers a significant opportunity to reach underserved populations, enhancing economic resilience and promoting inclusive development. The report outlines essential reforms that Angola can implement to foster the growth of its financial sector and enhance accessibility in an inclusive manner. These reforms include: Developing digital payments to expand access to financial services in remote areas. Making digital payments more accessible and intuitive. Establishing a favorable regulatory framework to increase access to finance for Microcredit and Small and Medium Enterprises (MSME). Promoting lending to MSMEs and improving the transparency and market alignment of initiatives to finance MSMEs. Implementing the Financial Action Task Force action plan and addressing deficiencies in the Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Framework. Increasing access to insurance for individuals and MSMEs, including weather-based-index insurance for agricultural activities. 'While addressing financial inclusion in Angola has several challenges, particularly for low-income and rural communities, there are constructive opportunities to address these barriers. By implementing regulatory reforms, embracing digital innovations, and enhancing financial education, Angola can pave the way for a more diverse economy and unlock new avenues for growth and job creation,' said Benedicte Baduel, World Bank Senior Country Economist for Angola. Distributed by APO Group on behalf of The World Bank Group.
Arabian Business
16-07-2025
- Business
- Arabian Business
UAE non-oil economy holds strong in June as real estate and tourism surge: OPEC
The UAE's non-oil economy continued to show resilience in June 2025, with the Purchasing Managers' Index (PMI) rising slightly to 53.5, up from 53.3 in May, according to the OPEC Monthly Oil Market Report (MOMR) released in July. The figures indicate continued economic expansion, even as the pace of growth shows signs of slight moderation. The report highlights that private sector performance remains robust, driven by strong momentum in the UAE's key real estate and tourism sectors. UAE economy outlook In Dubai, real estate continued its exceptional run: Year-to-date transaction volumes through June rose 24 per cent year-on-year Total transaction value jumped 38 per cent over the same period In June alone, volumes and values increased approximately 17 per cent year-on-year, with growth spread across all segments of the market Meanwhile, Abu Dhabi's real estate market also showed strong gains in Q2 2025: Transaction volumes were up 7 per cent year-on-year Property values surged by 45 per cent, reflecting rising investor interest and high-value asset activity The tourism sector also remained a bright spot. In Dubai, May 2025 arrivals climbed 6 per cent year-on-year, while year-to-date visitor numbers are up 7 per cent, exceeding pre-COVID-19 levels by 21 per cent. Hotel occupancy rates reached 83 per cent, underscoring strong seasonal demand and global travel recovery. Beyond these sectoral gains, the UAE continues to pursue strategic initiatives to diversify its economy and enhance global competitiveness. The MOMR noted a major milestone with the signing of the UAE-US Framework on Advanced Technology Cooperation, aimed at promoting joint innovation, investment, and knowledge transfer. These developments reflect the UAE's long-term strategy to position itself as a global hub for innovation, real estate investment, and sustainable economic growth, even as it navigates a complex global landscape.
Zawya
16-07-2025
- Business
- Zawya
UAE's non-oil economy remains on solid ground: MOMR
VIENNA: The UAE's non-oil economy remains on solid ground, with the June PMI expanding slightly to stand at 53.5, following a solid level of 53.3 in May and 54 in April, signalling continued expansion, despite some deceleration in momentum, according to OPEC Monthly Oil Market Report (MOMR) for July. Moreover, the monthly report said, the private sector continued to perform strongly, with the UAE's real estate and tourism sectors continuing to show strong momentum in 2025. In Dubai, year-to-date real estate transaction volumes through June rose 24%, y-o-y, with values up 38%, y-o-y, reflecting broad-based growth across all segments. In June alone, volumes and values increased by around 17%, y-o-y. In Abu Dhabi, 2Q25 real-estate volumes rose 7%, y-o-y, while values surged 45% on an annual basis. Tourism in Dubai also remained robust, with May 2025 arrivals up 6%, y-o-y, and year-to-date figures around 7% higher than the previous year. This level is about 21% above pre-COVID-19 levels, while hotel occupancy rose to 83%. In the meantime, the country is actively diversifying the economy and building international partnerships to support investment and economic diversification. The MOMR noted that important developments include new agreements on the launch of a UAE-US Framework on Advanced Technology Cooperation, underscoring a shared focus on innovation, investment, and the strategic transferral of knowledge. These efforts, among others, are part of broader national strategies to position the country as a global centre for innovation and sustainable economic growth.
Wall Street Journal
11-07-2025
- Business
- Wall Street Journal
Daddy, What's a Recession?
Former Federal Reserve Chairman Ben Bernanke joked that economic expansions don't die of old age, but can "get murdered." (Susan Walsh/AP)
