Business

Thursday, April 25, 2024 | Daily Newspaper published by GPPC Doha, Qatar.

Business


A Lufthansa airplane takes off from Frankfurt airport (file). The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe’s beleaguered top economy was at a “turning point” after battling through a period of weakness.

Germany nudges up its growth forecast; ailing economy at ‘turning point’

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe’s beleaguered top economy was at a “turning point” after battling through a period of weakness.Output is expected to expand 0.3% this year, the economy ministry said, up from a prediction of 0.2% in February.The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.The ministry also cut its forecast for inflation this year to 2.4%, from a previous prediction of 2.8%, and sees the figure falling below 2% next year.“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.” Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above 1%, but these were dialled back at the start of the year as the economy continued to languish.But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected. A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.Despite the economy’s improving prospects, growth of 0.3% is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.” Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

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Damage in Israeli air base after Iran attack

Israeli army footage of what it says is the damage caused by the Iranian attack on the Nevatim Air Base, which was launched late Saturday in retaliation for a deadly air strike widely blamed on Israel that destroyed its consular building in Syria's capital early this month. AFP

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Six months of bloodshed: The toll on Gaza’s children

The bloodiest ever Gaza war which broke out over six months ago has taken an appalling toll on children. NGO Save the Children estimates that some 26,000 children have been killed or injured in the war, 17,000 have been orphaned, according to UNICEF, and 1 in 3 children under two years old in northern Gaza is suffering from acute malnutrition. In total, at least 33,207 people have been killed in the besieged Palestinian territory in Israel's retaliatory campaign for the October 7 attack, according to Hamas-run Gaza's health ministry. The unprecedented Hamas raid on southern Israel resulted in the deaths of 1,170 Israelis and foreigners, most of them civilians, according to an AFP tally based on official Israeli figures. AFP

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Gazans struggle to secure flour for daily bread

"I spent the night on Kuwait Roundabout to secure this bag of flour", says a Palestinian in Gaza City carrying a bag of flour he managed to get from an aid truck. A UN-backed report warned that half of Gazans are experiencing "catastrophic" hunger, with famine projected to hit the north of the territory unless there is urgent intervention. AFP

Gulf Times

BIDA chairman welcomes Qatari investments with over $100bn opportunities

Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Lokman Hossain Miah welcomed the Qatari investments in his country, calling on the Qatari businessmen and investors to capitalise on the promising investment opportunities worth over $100bn in a variety of sectors.In remarks to Qatar News Agency, Miah said the visit of His Highness the Amir Sheikh Tamim bin Hamad al-Thani to Dhaka will lend impetus to the bilateral relations between the two countries and promote them in multiple fields, in addition to highlighting the emerging and more dynamic economy in Bangladesh.Miah added that there is excitement about the visit of His Highness the Amir, affirming that it reflects the strength of Bangladesh's economy. He added that Bangladesh has showcased stunning growth not only in economy, but also in all the socio-economic perspectives, including food production, 100% electricity generation, 100% mobile penetration, 90% access to mobile financial framework etc. He noted that the visit will be very helpful in rebranding Bangladesh to not only Qatar, but also many investors in the Middle East region. He also said that the visit of His Highness the Amir will open the door for more visits and exploration of economic opportunities by the investors from Qatar, stressing that BIDA will be ready to serve the delegations with all the necessary support they might need.Miah said that Qatar and Bangladesh are making progress in strengthening economic, commercial and technical cooperation between them, including seeking to sign a memorandum of understanding, in addition to a framework agreement, and he expects the establishment of a platform to explore new trade and investment opportunities in the two countries. He expressed Bangladesh's readiness to use those platforms to initiate more promotional activities towards rebranding Bangladesh as the new potential hub for investment in the region.He pointed out that while the size of trade and investment between the two countries are still not within a substantive level despite the existing opportunities and cultural ties, talks between officials in both countries are focused on establishing a permanent platform for economic cooperation and introducing more dynamism into the trade and investment sectors.He discussed the Bangladesh Investment Summit that took place in Doha in May 2023 during the visit of the Bangladesh Premier in Qatar, adding that the event was jointly organized by BIDA and Bangladesh Securities and Exchange Commission (BSEC), which generated a huge response from traders and investors from the Qatar community with an attendance of more than 300 investors. He emphasised that BIDA is following up on the summit to generate more investment from Qatar.Miah revealed that Bangladesh now boasts a huge $100bn investment opportunities across a number of sectors. Currently 85% of export earnings come from the RMG sector and the government is focusing on various sectors to diversify its export basket.He added that the key investment sectors include agro-food processing and machinery, readymade garments, manufacturing of high-end apparel items, man-made fibres, clothing accessories, fabrics/yarns, and natural and synthetic fibres, software and IT-enabled services, healthcare and medical equipment/devices, automobile and accessories, shipbuilding, leather and leather products, as well as tourism.He talked about a number of incentives and facilities offered to investors, including 100% foreign equity, profit repatriation, importing capital machinery only with 1% import duty, in addition to reducing duty structure for import of raw materials for industries registered with BIDA.He added that investors from Qatar has many opportunities to expand and increase the volume of investments in a variety of sectors in Bangladesh, in addition to capitalizing on all incentives Bangladesh offers. He expected that the private sectors in both the countries will get opportunities to explore the potential with increased economic cooperation.BIDA is considering plans to enhance the cooperation with Gulf Co-operation Council and other relevant authorities in the Gulf to enhance the co-operation in the field of investment", he said.

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