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AFG College with the University of Aberdeen has entered into a partnership with Kingdom Konsult, a local consulting firm in sustainability and the circular economy.Both the entities signed a memorandum of understanding (MoU) at the college’s new NBK1 campus, outlining a broad plan for professional, academic, and knowledge-based collaboration.This partnership has been developed to create meaningful opportunities for AFG College students to engage with real-life business environments and build professional competencies that will complement their academic experience."This agreement signed today demonstrates our ongoing commitment as an organisation to bridging the gap between academia and industry," said Sheikha Anwar bint Nawaf al- Thani, chief executive officer of Al Faleh Educational Holding.The scope of the MoU includes the offering of internships for students, giving them direct access to innovative projects that Kingdom Konsult are working on.Such opportunities allow students to apply the theoretical concepts taught in the classroom to a practical setting, thus gaining hands-on experience at a leading sustainability driven consultancy.Kingdom Konsult will participate at the college’s annual careers fair event, offering the opportunity for mentorships, as well as attending other career focused events.The partnership will allow Kingdom Konsult the opportunity to be actively involved in panel discussions, roundtable events, as well as guest lectures, which offers students insights from a leading provider of consultancy services. "This collaboration reflects our shared commitment to advancing Qatar’s sustainability and knowledge-based economy," said Katina Aghayan, founder and chief executive officer of Kingdom Konsult.Kingdom Konsult views education as the foundation of transformation, where young talents are empowered to think critically, innovate responsibly, and lead with purpose, according to her."Together, we are cultivating the next generation of sustainability leaders who will shape a greener, more resilient future for Qatar and the region," she said.AFG College will develop bespoke professional training for the staff of Kingdom Konsult, which will focus on developing their leadership and strategic decision-making abilities. These workshops will be developed in consultation with the firm and delivered by AFG faculty."As the nation moves forward with its drive towards being a knowledge-based economy, such partnerships will prove vital in shaping future generations," Sheikha Anwar said.

The Qatar National Bank (QNB) predicted that the US economy could grow an above consensus 2% this year, on the back of strong consumption and private investment. In its Economic Commentary, the QNB said: "At the beginning of the year, the outlook on the US economy pointed to a gentle slowdown in growth. But an agenda of disruptive policy change by the new administration began to take place, and the climate of optimism and positive market sentiment started to shift. Economic indicators have stabilized and, more surprisingly, some gauges even point to an acceleration in activity. The "GDP Now" is an informative real-time, model-based "nowcast" produced by the Federal Reserve Bank of Atlanta, which delivers a running estimate of real GDP growth in the current quarter for the US economy. It leverages a large set of high-frequency indicators from key economic sectors, and is therefore a representative summary of economic conditions. The latest available estimate points to an annualized growth rate of 3.8% in Q3-2025, a significant re-acceleration in activity relative to the 0.6% contraction in Q1-2025. In our view, the consensus growth forecast of 1.7% for this year is still lagging with respect to the latest information available and is therefore relatively pessimistic. In this article, we discuss the key components of GDP that are contributing to an acceleration of economic activity and support a relatively better outlook. First, household consumption is providing a strong boost to US real GDP growth, underpinned by the combination of resilient, even if deteriorating, employment, record household net wealth, and adequate access to credit. Consumption represents close to 70% of GDP and is therefore a major driver of economic growth. Retail sales adjusted for inflation, a useful gauge of consumption strength, accelerated to 1.7% year-over-year according to the latest prints, significantly above the average of -0.3% from last year. Even as job gains have slowed, the unemployment rate at 4.3% remains in the range of balanced employment, and earnings have steadily grown in real terms, outpacing inflation. This helps to keep aggregate household incomes strong. At the same time, a positive wealth effect from rising stock markets has bolstered spending capacity. Directly and indirectly held equity represents 35% of household net wealth, and 14% year-to-date growth in major indices has a significant impact on wealth, providing a positive effect that bolsters consumption sentiment. Borrowing channels also remain dynamic, with total household credit growing USD 352 Bn in the first two quarters and continuing to support expenditures this quarter. Together, these factors are contributing to maintaining household consumption as the key driver of real GDP momentum, accounting for 2/3 of real GDP growth expected for this quarter. Second, business investment is showing a strong performance, on the back of favourable financial conditions, fiscal incentives, and technology and AI-related capital expenditures. The latest data releases have shown accelerating growth in "core capital goods orders," a timely and representative signal of private-sector capital expenditures ("capex"). This measure tracks non-defence capital goods and excludes aircraft orders, which are typically sensitive to irregular procurements, and are therefore noisier. In recent months, this indicator has been growing at a rate of close to 4% in annual terms, a remarkable acceleration from the 0.9% average contraction last year. Several factors are contributing to investment growth. Demand for equipment and technology is surging, as firms continue to invest to support productivity and AI-related expansion. Policy incentives, such as the CHIPS Act, the Inflation Reduction Act, and infrastructure programs are spurring construction of semiconductor facilities, factories, and clean energy projects. Additionally, healthy corporate profits and high expected returns on invested capital give businesses the means and the incentives to move forward with long-term projects. Taken together, these investment trends are contributing to an acceleration of economic growth. All in all, a reacceleration of the US economy is taking place on the back of strong momentum in consumption and private investment. In our view, the US economy could grow an above consensus 2% this year, on the back of strong consumption and private investment."

His Excellency Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani chaired the Cabinet's regular meeting, held on Wednesday morning at the Amiri Diwan.Following the meeting, His Excellency Minister of Justice and Minister of State for Cabinet Affairs Ibrahim bin Ali Al Mohannadi stated the following:The Cabinet considered the topics on its agenda and approved the Minister of Finance's draft resolution amending the exemption limits graned to micro, small, and medium-sized enterprises, which aims to encourage entrepreneurs to participate in government tenders, thereby enhancing competitiveness, diversifying the contractor base, and reducing risks. This comes in line with the country's directives and strategic plans to empower the private sector and increase its contribution to the economy.The Cabinet decided to take the necessary measures to ratify an agreement on the promotion and protection of mutual investments between the government of the State of Qatar and the government of the Dominican Republic. The Cabinet also approved Qatar's membership in the WorldSkills Asia Organization, the draft Memorandum of Understanding (MoU) on cooperation and exchange of expertise in the field of development planning between the government of the State of Qatar and the government of the State of Kuwait, the draft railway link agreement between the government of the State of Qatar and the government of the Kingdom of Saudi Arabia, and the draft MoU on political consultations on issues of mutual interest between the State of Qatar's Ministry of Foreign Affairs and Bosnia and Herzegovina's Ministry of Foreign Affairs.The Cabinet also approved a draft agreement on the mutual exemption from entry visa requirements for holders of ordinary passports between the government of the State of Qatar and the government of the Republic of Paraguay, a draft agreement on the mutual promotion and protection of investments between the government of the State of Qatar and the government of the Hong Kong Special Administrative Region of the People's Republic of China, and a draft MoU on joint cooperation in the field of museums between the State of Qatar's Qatar Museums Authority and the People's Republic of China's Cultural Heritage Administration of Sichuan Province.The Cabinet concluded its meeting by reviewing three reports and taking the appropriate decisions in their regard, including the annual report on the Cabinet's work for the period of August 2024–July 2025, a report on the outcomes of participation in the 113th session of the International Labour Conference (Geneva - June 2025), and a report on the outcomes of participation in the 78th session of the World Health Assembly (Geneva - May 2025).

Mwani Qatar reported handling over 1.11 million containers in the first nine months of 2025, marking a year-on-year growth of approximately 2 percent compared to the same period last year. This strong performance highlights the company's pivotal role in supporting the national economy. Mwani Qatar shared on X today that it received 2,276 vessels during the first nine months of 2025. This included the handling of over 1.34 million tons of general and bulk cargo, 91,266 vehicles and equipment units, 403,868 heads of livestock, and 488,069 tons of building materials.

QNB confirmed that the beginning of 2025 was accompanied by cautiously positive expectations for global trade growth, supported by relative stability in the world economy. However, new shifts in US trade policy have significantly affected the global economic landscape. The bank's weekly report noted that the decision of the United States on Apr. 2 to impose broad tariffs including duties of no less than 10 percent on imports and higher rates on selected countries has led to rising concerns about supply chain disruptions, increased uncertainty, and the potential escalation of trade disputes. The report stated that, as a result, the World Trade Organization (WTO) has forecast a contraction in global trade volumes for the current year, an occurrence that is rare and typically seen only in exceptional circumstances such as the 2009 global financial crisis and the 2020 COVID-19 pandemic. The report explained that economic indicators since April 2025 have shown notable resilience in the global economy despite existing challenges. It projected that global trade growth in 2025 will be modest compared to previous periods, but will remain far beyond the most pessimistic scenarios. This outlook is supported by three main factors. The first factor highlighted in the report is that leading indicators, particularly from highly integrated Asian economies such as Japan, South Korea, Singapore, Taiwan, and Vietnam, reflect strong export activity, signaling a recovery in global trade. These markets recorded an average annual growth rate of 6 percent in 2024, with the rate accelerating to 12 percent in the last four months of the year despite trade tensions. The report also pointed to Chinese export growth of 6 percent during the same period, reflecting sustained global demand. In this context, the report stated that investor expectations regarding the earnings of transportation-sector companies serve as an important indicator of future global trade trends. The Dow Jones Transportation Average in the United States, which includes companies involved in air, land, and sea transport as well as rail and delivery services, reached its lowest annual growth level in mid-2024 before rebounding into positive territory, signaling a possible expansion of trade.This improvement reflects a decline in pessimism even amid continued trade shocks. The gap between strong Asian export growth and the more cautious profit expectations of transport companies was attributed to the increase in early shipments to the US market in anticipation of further tariff threats. The second factor concerns a significant decrease in the likelihood of large-scale global trade wars despite the rise of US protectionist policies. The report explained that the conclusion of US negotiations with key trading partners, including the United Kingdom, Japan, and the European Union, has clearly reduced uncertainty and lowered the probability of expanding tariff measures. At the same time, most global economies are moving toward greater trade integration through multilateral agreements, which reduces the negative impact of protectionist policies and strengthens the stability of the global trading system. The third factor relates to monetary policy. The report considered that waves of monetary easing adopted by major central banks are expected to provide additional support for global trade growth in the coming period. It noted that the US Federal Reserve is expected to cut its benchmark interest rate by 125 basis points next year, bringing it down to 3.25 percent by the end of 2026, in an effort to reduce borrowing costs and stimulate economic activity. Similarly, the European Central Bank has lowered its key rate by 200 basis points since mid-2024 to settle at 2 percent.The report emphasized that interest rates are a decisive factor in supporting investment and boosting consumer spending, which are two key pillars of global trade, particularly given that the United States and the euro area together account for about 40 percent of global GDP. The bank concluded its report by affirming that the outlook for 2025 indicates a tangible improvement in the prospects for global trade compared to the more pessimistic scenarios that followed Washington's announcement of broad tariffs. It pointed out that a combination of positive economic indicators, accommodative monetary policies, and the signing of new trade agreements is helping to limit the repercussions of geopolitical and economic tensions and to support the stability of the global trading system in the upcoming period.

Commercial Bank Financial Services (CBFS), in collaboration with Qatar University, hosted a two-day workshop at the university premises. The workshop was dedicated to sharing and promoting financial literacy amongst students.Led by industry experts, the workshop equipped students with practical tools and knowledge to support their investment journey, foster entrepreneurship, and contribute to Qatar’s growing economy. The first day covered Qatar’s local market, index selection methodology, and approaches to relative valuation and sector analysis. The second day introduced students to a typical career path in investment while exploring best practices in technical analysis.Through the workshop, students developed a deeper understanding of financial literacy and were encouraged to envision careers in business and investment.Hamad al-Shehri, General Manager of CBFS, commented: “At CBFS, we believe in the importance of a financially aware community, well-prepared for future economic challenges. “Through this workshop, we helped empower the next generation with the tools and confidence to lead Qatar’s future investment and financial future.”

Qatar Chamber recently participated in the 39th meeting of the board of directors of the Islamic Chamber of Commerce and Development (ICCD) and the ‘Invest in the Digital Economy Forum’, held in Amman, Jordan.The events came as part of the Islamic Chamber’s ongoing efforts to strengthen economic integration and advance the Islamic business sector globally.Qatar Chamber’s delegation included board members Dr Mohammed bin Jawhar al-Mohammad, Abdul Rahman bin Abdul Jalil al-Abdul Ghani, and Abdullah bin Mohammed al-Emadi.The meeting discussed mechanisms to foster economic co-operation among Islamic countries, facilitate the exchange of expertise, and support joint development projects.During the meeting, heads and representatives of chambers and unions from 16 Islamic countries, together with leading economic experts and decision-makers, reviewed the progress of the Islamic Chamber’s projects and initiatives, which aim to empower private sector organisations and support Muslim businesses in non-Islamic countries.It also reviewed the action plan prepared by the general secretariat, based on a study submitted by Qatar Chamber at the previous meeting. The study included three comparative analytical reports assessing the organisation’s performance against similar institutional models, alongside a set of proposals outlining the organisation’s future role and potential directions in the coming phase.Speaking at the meeting, al-Mohammad condemned the brutal attack on Qatar by the Zionist entity, emphasising that it occurred at a time when Qatar was actively seeking to promote peace and explore all avenues for a peaceful resolution in Gaza.He added that this attack on Qatar, as well as on other Arab and Islamic countries, calls for a reassessment of strategies and a reformulation of approaches within the framework of the Islamic Chamber, which represents the Islamic economy across 57 countries and advocates on behalf of the economic interests of the Muslim world.Al-Mohammad underscored the ICCD’s pivotal role in enhancing co-ordination among its member chambers and ensuring their active participation in international forums. He also highlighted the importance of encouraging chambers to collaborate, support initiatives launched by individual members, and motivate others to join these efforts.In this context, he pointed to the Jordan Chamber’s initiative in the digital field, emphasising that it should be supported as a successful model. Al-Mohammad also stressed the importance of establishing joint economic entities that serve the private sector and Islamic countries and societies, establishing Islamic banks with contributions from member chambers, and launching insurance companies, educational, health, and technical companies, as well as contracting and construction projects.During the meeting, Abdullah Saleh Kamel was re-elected by acclamation as president of the Islamic Chamber for a new term (2026-2030). The meeting further reviewed an update of the Palestine Initiative, launched by the Islamic Chamber during the 39th General Assembly in Qatar.The initiative aims to support SMEs in Palestine, empower youth to work remotely, and provide job opportunities with various companies and organisations worldwide through digital economy tools. It also seeks to enhance skills across multiple fields through targeted training, thereby contributing to Palestine’s integration into the global market and the development of a strong and resilient national economy despite existing challenges.

Qatar's economy-maintained growth in the second quarter of 2025 despite a challenging global context, with real GDP rising by 1.9% compared to the same period in 2024. This growth was driven primarily by non-hydrocarbon activities, which expanded by 3.4%.According to a statement issued by the National Planning Council (NPC) on Sunday, Qatar's economy registered real GDP growth of 1.9% year-on-year, reaching QR181.8bn at constant prices, compared to QR178.5bn in Q2 2024.Non-hydrocarbon activities accounted for 65.6% of real GDP, with value added reaching QR119.3bn in Q2 2025, compared to QR115.4bn in the same period of 2024. This reflects a year-on-year increase of 3.4%, underscoring the effectiveness of diversification policies outlined in the Third National Development Strategy (NDS3) and Qatar National Vision 2030.Within the non-hydrocarbon economy, the fastest-growing activities on a year-on-year basis were: agriculture, forestry and fishing (+15.8%); accommodation and food services (+13.4%); arts, entertainment and recreation (+8.9%); wholesale and retail trade (+8.8%), and Construction (+8.7%).These broad-based gains reflect ongoing investment in tourism, services, and specialised infrastructure, and strengthen the role of private sector activities in Qatar's economy.In total, 11 of 17 economic activities recorded positive real growth in Q2 2025, demonstrating the resilience of Qatar's economic base. Service-related activities such as accommodation, food services, and entertainment continued to expand strongly, reflecting sustained momentum in tourism and domestic demand.NPC noted that its National Statistics Center continues to refine its methods for measuring GDP, with recent revisions applied to Q1 2025 and Q2 2024 estimates. As part of ongoing efforts to align national accounts with international best practices (System of National Accounts 2008/2025), a comprehensive revision of Qatar's national accounts is underway and scheduled for completion by Q1 2026.NPC Secretary-General Dr Abdulaziz bin Nasser bin Mubarak al-Khalifa emphasised the strength and resilience of Qatar's economic performance, noting the sustained expansion of non-hydrocarbon activities."These indicators reflect the progress of Qatar's economy, with non-hydrocarbon sectors recording notable growth that demonstrates the increasing diversification and stability of our national economy," he said."The current growth rates also point to additional opportunities for advancement. There remains significant potential that we aim to unlock through the Third National Development Strategy, which will continue to drive sustainable economic growth and create distinctive investment and entrepreneurial opportunities for the private sector," al-Khalifa added.

The Middle East is racing to the front of the global hydrogen economy, with GCC countries leveraging ultra-low-cost renewables, world-class infrastructure, and decisive policy backing, according to Al-Attiyah Foundation.Qatar is advancing its landmark 1.2mn tonnes per year Blue Ammonia Project in Mesaieed Industrial City, scheduled to begin operations in 2026, alongside new green hydrogen initiatives that build on its global LNG leadership.Saudi Arabia has achieved record-breaking solar tariffs close to one US cent per kilowatt hour and Oman is targeting more than 8mn tonnes of renewables-based hydrogen by mid-century.In 2024, global hydrogen demand reached nearly 100mn tonnes, but less than one percent was supplied from low-carbon sources, and green hydrogen represented only a fraction of that. More than 60 countries have now published national hydrogen strategies, but most of them remain aspirational.The majority are aiming to position themselves as exporters, while only a small number in Asia and Europe have declared intentions to be importers. This imbalance exposes the risk of a growing gap between supply ambitions and credible demand, raising doubts about whether many of these strategies can be realised in practice.The new Al-Attiyah Foundation research paper, ‘Charting National Hydrogen Strategies for Future Trade’, examines how the Gulf states’ abundant solar and wind resources, competitive renewable energy prices, existing export infrastructure, and policy coherence are allowing the region to progress with projects that are already bankable and capable of scaling.The United Arab Emirates continues to expand its clean energy capacity through Masdar and other entities, tying renewable generation to hydrogen and ammonia projects for both domestic and export use.Qatar, through its Mesaieed development and wider portfolio of hydrogen-linked ventures, is cementing its position at the forefront of the sector.Hydrogen offers pathways to decarbonise hard-to-abate industries such as steel, aluminium, cement and fertilisers, and the Gulf states are already embedding hydrogen into these sectors.Doing so reduces the risks of overreliance on export markets, ensures that domestic demand anchors early projects, and positions the region to capture premium margins from low-carbon products. For Europe and Asia, where demand will outstrip domestic supply, partnerships with Middle Eastern producers are likely to become essential to achieving climate goals.The Al-Attiyah Foundation noted that the next five years will determine whether global hydrogen strategies succeed or stall.Many nations face uncertainty due to policy fragmentation, limited carbon pricing, and hesitant offtakers unwilling to pay a green premium.The GCC, by contrast, combines decisive leadership with structural advantages that give it a commanding position.

HE the Minister of Commerce and Industry, Sheikh Faisal bin Thani bin Faisal al-Thani, met on Saturday with Minister of Economy of the Republic of Azerbaijan, Mikayil Jabbarov, who is visiting the country, reports QNA. During the meeting, they discussed topics of mutual interest aimed at enhancing cooperation between the two countries in the commercial, investment, and industrial fields, as well as ways to support and develop this cooperation. They also explored the successful economic policies adopted by the State of Qatar to support the private sector, in addition to the incentives, legislation, and promising investment opportunities the country provides to encourage investors and business leaders to invest in the Qatari market.

Indian companies are betting on small towns and villages to sustain growth at a time the third-largest Asian economy is bracing for pain from US’s punishing 50% tariffs.Businesses from biscuits makers to building materials suppliers underscored the buoyant rural demand in investor calls for their June quarter earnings, adding that low inflation and the prospect of a good harvest will ensure the 900mn Indians living outside cities keep spending. Consumption growth in India’s countryside has outpaced that in urban markets for six straight quarters, according to data analytics firm NielsenIQ.Demand in rural India, dominated by its agrarian economy, is a bit more insulated from the impact of the exorbitant US tariffs, making it an important focus area to get growth from, Sudhanshu Vats, managing director at adhesives and paint maker Pidilite Industries Ltd told Bloomberg News.India’s gross domestic production in the three months through June expanded at the fastest pace in more than a year. Private consumption grew 7% on the back of strong rural demand and improvement in agriculture wages.The growth, however, risks hitting a speed-bump after US President Donald Trump doubled the 25% duty on Indian exports from August on more than half of goods shipped to the US — its biggest market. The levies will almost certainly bruise labour-intensive industries such as textiles and jewellery, which are concentrated around large cities.Meanwhile, real rural wages rose at the fastest pace in more than seven years, according to data from Citigroup Inc. The gap between rural and urban monthly per-capita consumption has also narrowed significantly, official figures showed.“We’ve seen very good growth this quarter,” Varun Berry, managing director at Britannia Industries Ltd, told investors last month, despite the global economy going through turbulent times. The bread and cookie maker expects to retain its growth momentum with a focus on India’s rural markets, he said.Pidilite is adding distributors and setting up branded stores in smaller towns, with population of less than 12,000, as well as expanding waterproofing centres and mobile customer support vans, to drive growth.Consumption accounts for more than half of the GDP in the world’s most populous nation, and mass spending in its hinterland is fast catching up with that in cities. Last month, Prime Minister Narendra Modi announced tax cuts that aim to shield the economy from the negative impact of US tariffs.“The timing of GST reforms is apt,” Tanvee Gupta Jain, chief India economist at UBS Securities, said in a note, adding that counter-cyclical policy measures were necessary to counter tariff uncertainties. The tax cuts will boost household consumption over the next two to three quarters, she added.Shares of rural-focused stocks have outperformed broader indexes, suggesting investors see them as a hedge against tariff risks.“We see large volumes of contribution coming from rural segment,” said Nikhil Doda, co-founder of Archian Foods Pvt, which sells a popular cumin-flavoured fizzy drink, Lahori Zeera.The company that competes with Coca Cola Co and PepsiCo Inc, even provides “insulated chill boxes” to rural sellers of its 10-rupees ($0.1) beverage, as most small shops don’t even have a refrigerator. Small towns are a significant contributor to the company’s sales.There is an inclination amid rural consumers to try newer products, according to K Ramakrishnan, managing director for South Asia at consumer research firm, Worldpanel by Numerator. “All the contributing factors to boosting consumption in rural areas are strong for India.”

Despite the challenges posed by higher US tariff rates, the global economy will remain largely resilient against the uncertainty and the disruptions in global trade flows, according to QNB.At the beginning of the year, the global outlook pointed to steady economic growth, against a backdrop of cautious optimism. Tailwinds included the policy rate cutting cycles by major central banks, resilient growth of the US economy, cyclical recoveries in China and the Euro Area, and constructive overall investor sentiment, QNB noted in an economic commentary.Growth in both Advanced Economies (AE) and Developing Economies (DE) was initially expected to remain unchanged compared to last year, adding up to a world economic expansion rate of 3.3%.But the optimistic tone began to shift as the new US administration embarked on an aggressive agenda of policy change, with sweeping implications for the global macroeconomic landscape.On April 2, a day that came to be known as “Liberation Day,” President Trump announced sweeping tariffs, including a 10% baseline levy on all imports, and higher rates on selected countries.Financial markets reacted sharply to the announcements, with global stocks tumbling on fears of broader and deeper trade wars, as well as tainted policy credibility.The outlook narrative then debated the odds of a world recession. At its worst moment, growth expectations for the global economy dropped from the recent peak by 0.5 percentage point (p.p.) to 2.8%, a significant downgrade in a very short period of time.Since then, asset prices have recovered, with key indices reaching new highs, as the more negative trade-war scenarios were ruled out, AI-driven growth tailwinds regained the spotlight, and corporate profits remained robust.According to QNB, growth expectations have stabilised and even slightly recovered. The group of AE, which represents 40% of the world economy, is now expected to grow 1.5% this year, from a low of 1.4%.More significantly, after falling 0.5 p.p. to 3.7%, expectations for growth in the Developing Economies (DE) climbed to 4.1%, re-gaining most of the previous losses.Thus, recovering growth projections across the AE and DE groups are contributing to improving the outlook for global economic growth, which is expected to reach 3%.In QNB’s view, despite the challenges posed by higher US tariff rates, the global economy will remain largely resilient against the uncertainty and the disruptions in global trade flows.QNB has discussed two key factors that support its view of an improving global economic outlook.First, the US administration has concluded a first set of negotiations, which helped moderate uncertainty and discard the most extreme negative scenarios. The initially unyielding position of President Trump shifted towards pragmatism as deals were reached with the UK, Japan, Indonesia, Vietnam, the Philippines, and the EU, among others, narrowing the range of potential tariff rates for the rest of the world. Furthermore, even as the US has become more protectionist, the rest of the world is largely continuing to move in the opposite direction.From the European Union (EU) to Asia and Latin America, most major economies continue to view trade as essential to their growth models, and are actively pursuing deeper integration via new or deeper trade agreements. Even as the world adjusts to a more protectionist US, the outlook on global trade has improved, contributing to a less pessimistic growth scenario.Second, monetary policy easing cycles by major central banks will contribute to improve overall financial conditions and the stability of the global economy. Bringing inflation under control has allowed the US Federal Reserve and the European Central Bank (ECB), the two most important central banks in the AE, to start their interest rate cutting cycles.In the US, the Federal Reserve is set to cut its policy interest rate by 125 basis points over the next year, while the ECB could implement one more cut, bringing its benchmark rate to 1.75%. Stock markets have staged a notable recovery backed by resilient corporate earnings, while corporate credit spreads are narrowing, signalling improved market sentiment and easier credit for firms.The Financial Conditions Index (FCI) provides an informative summary of the overall state of markets, and is signalling that improving conditions are reducing borrowing costs for households and business, adding support to consumption and investment.“All in all, the global outlook initially deteriorated sharply after the US tariff announcements, but pessimism has gradually subsided on the back of improving prospects for international trade and better financial conditions supporting consumption and investment, leading to a broad based upgrade of performance expected across the AE and the DE,” QNB added.