Latest news with #Brende
Business Recorder
28-06-2025
- Business
- Business Recorder
Words of caution from Summer Davos
EDITORIAL: It's not every day that the president of the World Economic Forum warns of a 'decade of lower growth.' But that's precisely the message Børge Brende delivered at Summer Davos in Tianjin — a sobering forecast that goes beyond the usual Davos-speak of digital revolutions and climate partnerships. The world, he said, is entering its most geopolitically complex period in decades, and the headwinds facing global growth are intensifying, not fading. Markets have grown used to brushing off geopolitical shocks. The pandemic was followed by a rapid recovery. Russia's invasion of Ukraine triggered initial panic, but portfolio flows resumed quickly. Even the Israel–Iran war, despite its high stakes, has not yet translated into a prolonged financial crisis. But the accumulation of risks — trade fragmentation, armed conflict, political instability — is beginning to show up in macro projections. Both the World Bank and IMF have now revised global growth forecasts for 2025 downward, from 2.7pc to around 2.3pc. That may not sound catastrophic, but in a world fuelled by debt and liquidity, even a half-point drag on global GDP has wide-ranging implications. It affects not just trade flows and commodity demand, but sovereign debt sustainability, social stability, and the room central banks have to ease. Brende's warning is timely, not just because of the numbers, but because of the structural shifts underway. The world isn't simply in a slowdown — it's in the early stages of a strategic reordering. The US-China trade war, once dismissed as a Trump-era anomaly, is now institutionalised policy. China, which still accounts for about 30 percent of global growth, is shifting inward — away from export dependency and toward domestic consumption and digital services. That transition is necessary, but it's not without turbulence. Beijing's real estate market remains fragile, consumer confidence is uneven, and supply chain recalibrations are far from complete. If the Chinese engine sputters, the rest of the world will feel it. In parallel, the multilateral trade order that underpinned decades of growth is losing traction. New regional blocs, tariff walls, and subsidy races have become the norm. The return of industrial policy may excite national planners, but it fragments global efficiency. When war in one region sends insurance premiums, energy costs, and shipping rates soaring, it becomes harder to pretend these shocks are local. They're systemic—and cumulative. What's particularly worrying is that none of this exists in isolation. As Brende pointed out, the traditional lines between economic and security policy are now blurred. Conflict doesn't just disrupt supply chains; it drives trade strategy. Currency wars give way to chip bans. Defence deals morph into energy alliances. And through it all, global governance institutions struggle to keep pace. For developing economies, including Pakistan, this complexity is doubly dangerous. Growth in the Global South has historically ridden the coattails of open trade, capital flows, and commodity cycles. Now, with a flipped interest rate cycle, declining aid flows, and a global turn inward, that model is under pressure. And while the wealthy world debates reshoring and AI regulation, developing countries are facing food inflation, energy volatility, and climate shocks without the fiscal space to absorb them. The point is not that growth will vanish. It won't. But its sources, reliability, and beneficiaries are shifting. If the coming decade is marked by structural fragmentation and political brinkmanship, growth will become a more selective story—dependent on stability, institutional strength, and geopolitical alignment. Brende's message, then, isn't just a warning. It's a challenge to policymakers who still act like the post-2008 playbook applies. It doesn't. The new normal is one of overlapping crises, diminishing buffers, and increasingly short market patience. Anyone not preparing for that reality is setting themselves up for failure. Copyright Business Recorder, 2025
Business Times
25-06-2025
- Business
- Business Times
Trade will always still exist, though patterns will change and evolve, says PM Wong at WEF
[BEIJING] Despite a move toward greater self-sufficiency, trade will still exist because no country can be completely self-sufficient, said Prime Minister Lawrence Wong on Wednesday (June 25). Trade may not grow as much as it used to, and patterns of trade will change and evolve, with different supply chains and configurations, he told an audience at the World Economic Forum's (WEF) Annual Meeting of the New Champions – also known as the Summer Davos – in Tianjin. But trade remains relevant, he said, even as he acknowledged that technology and sustainability will become new drivers of growth and 'power the economy of the future'. PM Wong made these points during a dialogue session with WEF President and chief executive officer Borge Brende. The Singapore prime minister emphasised the continued importance of multilateralism as he gave an example of what he described as 'flexible multilateralism'. The World Trade Organization (WTO) has brought about free trade and a rules-based trading system that has benefitted many, but its rules have lagged behind the realities of today's economy, particularly in digital trade, said PM Wong. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, rather than 'jettison the rules', Singapore, Australia and Japan co-convened the Joint Statement Initiative (JSI) on e-commerce. After five years of negotiations, 71 members have agreed on the first set of global rules on digital trading. The JSI is proof that 'it is possible to update, evolve and improve the multilateral system and global institutions that we have today', he said. '(Flexible multilateralism) is not about an ad-hoc array of different rules, but starting first, laying the building blocks, and eventually others can join in, and we can steer progress in the right direction,' he said. Brende later asked whether 'this kind of more plurilateral' agreement, as well as bilateral and regional trade agreements, could mean that trade is complicated and 'we end up with a big spaghetti bowl', referencing a phenomenon where multiple agreements supplant multilateral agreements. PM Wong agreed that the concern exists, but countered: 'What is the alternative? Do nothing? It cannot be do nothing, and hope that some day, along the way, something new emerges out of nowhere.' He believes that if like-minded countries put in place basic building blocks and remain open and inclusive, they can 'multilateralise' these efforts in time to come. PM Wong (right) shaking hands with WEF acting chairman Peter Brabeck-Letmathe at the Summer Davos in Tianjin. With them is Kyrgyzstan Prime Minister Adylbek Kasymaliev. PHOTO: MDDI Brende also asked whether Singapore has 'changed its approach', from doing more trade agreements under multilateral systems such as the WTO to more bilateral and 'mega-regional' ones. PM Wong responded that Singapore started with many bilateral free trade agreements (FTAs) that built up to 'a more robust multilateral system'. Amid rising trade barriers, Singapore's response would still be to work at reforming and updating the WTO, but engage with like-minded countries to strengthen trade and investment links in parallel, he said. On Brende's remark that Singapore received 'a relatively good deal' with just 10 per cent tariffs in the US' trade war, PM Wong noted that on the basis on the city-state's FTA and trade balance with the US, it 'should have a zero tariff'. Singapore is engaging the US, but the latter is unlikely to lower tariffs below their 10 per cent baseline, he noted. 'That's why I've said that we are in a new era where there will be more barriers to trade, and we have to accept these realities. Not that we think it's a good idea, but these are the realities that we have to work with,' the prime minister said. 'Meanwhile, countries that would like to promote and advance the agenda for free trade should come together and work in different formats, different platforms, whether regional or plurilateral platforms, to advance the agenda for free trade. And Singapore will be the first to lead the charge on this.' On Wednesday, PM Wong also attended the WEF's opening plenary and met separately with Senegal Prime Minister Ousmane Sonko and Vietnam Prime Minister Pham Minh Chinh. He is due to return to Beijing on Wednesday evening where he will meet Singaporeans at a reception.
Business Recorder
25-06-2025
- Business
- Business Recorder
Turmoil impacting global growth: WEF chief
TIANJIN, (China): The world is facing the 'most complex' geopolitical situation seen in decades, the head of the World Economic Forum (WEF) told AFP Tuesday, warning that turmoil was 'impacting global growth'. 'It is the most complex geopolitical and geo-economic backdrop we've seen in decades,' WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin. 'If we are not able to revive growth again, we can unfortunately see a decade of lower growth,' he warned. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin — known colloquially as the 'Summer Davos'. The meeting comes hard on the heels of the United States' involvement in the Iran-Israel conflict and follows months in which the global economy has been battered by a tariff war launched by US President Donald Trump. This month, the World Bank cut its forecast for global growth this year from 2.7 percent to 2.3 percent, following a similar reduction by the International Monetary Fund. Brende told AFP it was still too soon to predict the impact of Trump's swingeing tariffs. It is 'too early to say what these tariffs will end with because the negotiations are still ongoing', he said. 'I think the jury is still out, but the traditional globalisation we saw is now changed into a different system,' he said. 'That is a new chapter... especially since trade was the engine of growth.' Brende also warned mounting conflict could have a 'very negative impact' on global growth. The WEF gathering in Tianjin comes at an uncertain juncture for the Chinese economy, which has struggled under a years-long property sector crisis and sluggish domestic spending. 'China really does matter,' Brende said, adding he expects the country to account for almost 30 percent of global growth this year. 'China is pivoting its economy more towards digital trade, towards services and also now opening up for increasing domestic consumption — something that is important,' Brende said.
See - Sada Elbalad
24-06-2025
- Business
- See - Sada Elbalad
Mashat: Egypt Committed to Sustainable, Private-Led Economic Growth
H-Tayea At the opening of the World Economic Forum (WEF) Annual Meetings in China, Egypt's Minister of Planning, Economic Development, and International Cooperation, Dr. Rania A. Al-Mashat, held a high-level meeting with WEF President and CEO Børge Brende to discuss global economic shifts, regional instability, and Egypt's ongoing reform efforts. The meeting was attended by Egypt's Minister of Investment and Foreign Trade, Eng. Hassan El-Khatib. Participating as a co-chair of this year's WEF meetings, Dr. Al-Mashat emphasized Egypt's commitment to economic transformation driven by the private sector and reinforced by international partnerships. She underscored the evolving collaboration between Egypt and the WEF, which she described as 'central to supporting structural reforms, enhancing economic resilience, and confronting global challenges.' With the Forum serving as the world's largest gathering of private sector leaders and investors, Egypt is positioning itself to fully leverage this platform to support national development priorities. Al-Mashat pointed to the flexibility and strength of the Egyptian economy in navigating successive global and regional shocks. She highlighted the government's three-year reform program, which focuses on macroeconomic stability, attracting foreign direct investment, boosting industrial development, and strengthening human capital. A key highlight was Egypt's preparation of a national economic narrative that integrates multiple strategic frameworks—including Egypt Vision 2030, the government's current program (2024/25–2026/27), the National Structural Reforms Programme, and the Integrated National Financing Strategy. The aim: to build a competitive, investment-friendly economy with inclusive, sustainable growth. Dr. Al-Mashat also presented Brende with a report titled 'Development Finance to Foster Private Sector-Led Growth and Jobs', which documents over $15.6 billion in development finance mobilized since 2020 to empower the private sector. She reaffirmed Egypt's determination to expand access to financing tools that enable the private sector to drive development. For his part, WEF President Brende praised Egypt's ongoing economic reforms and strategic direction, applauding the strength of the bilateral relationship and the government's dedication to macroeconomic stability. The meeting follows Brende's 2024 visit to Cairo, during which he met with President Abdel Fattah El-Sisi and Prime Minister Mostafa Madbouly, reinforcing the strategic nature of the Egypt-WEF partnership. Dr. Al-Mashat currently serves as co-chair of the WEF's MICEE (Mobilizing Investment for Clean Energy in Emerging Economies) and holds memberships in multiple WEF initiatives focused on economic resilience and inclusive growth. The discussions concluded with both sides reaffirming the importance of collaboration to address today's most pressing economic and geopolitical challenges and to shape a more resilient, inclusive, and sustainable global economy. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
New Indian Express
24-06-2025
- Business
- New Indian Express
World facing 'most complex' situation in decades: WEF
TIANJIN: The world is facing the "most complex" geopolitical situation seen in decades, the head of the World Economic Forum (WEF) told AFP Tuesday, warning that turmoil was "impacting global growth". "It is the most complex geopolitical and geo-economic backdrop we've seen in decades," WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin. "If we are not able to revive growth again, we can unfortunately see a decade of lower growth," he warned. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin -- known colloquially as the "Summer Davos". The meeting comes hard on the heels of the United States' involvement in the Iran-Israel conflict and follows months in which the global economy has been battered by a tariff war launched by US President Donald Trump. This month, the World Bank cut its forecast for global growth this year from 2.7 percent to 2.3 percent, following a similar reduction by the International Monetary Fund. Brende told AFP it was still too soon to predict the impact of Trump's swingeing tariffs. It is "too early to say what these tariffs will end with because the negotiations are still ongoing", he said. "I think the jury is still out, but the traditional globalisation we saw is now changed into a different system," he said. "That is a new chapter... especially since trade was the engine of growth." Brende also warned mounting conflict could have a "very negative impact" on global growth.
