IMF chief sees steady world growth in 2025, continuing disinflation

IMF chief sees steady world growth in 2025, continuing disinflation
In this file photo, taken on October 13, 2022, IMF managing director Kristalina Georgieva concludes a news conference at the headquarters of the International Monetary Fund during the Annual Meetings of the IMF and World Bank in Washington, US. (REUTERS/File)
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Updated 11 January 2025
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IMF chief sees steady world growth in 2025, continuing disinflation

IMF chief sees steady world growth in 2025, continuing disinflation
  • Georgieva’s comments are the first indication this year of the IMF’s evolving global outlook
  • The IMF will release an update to global outlook on Jan. 17, just days before Trump takes office

WASHINGTON: The International Monetary Fund will forecast steady global growth and continuing disinflation when it releases an updated World Economic Outlook on Jan. 17, IMF Managing Director Kristalina Georgieva told reporters on Friday.
Georgieva said the US economy was doing “quite a bit better” than expected, although there was high uncertainty around the trade policies of the administration of President-elect Donald Trump that was adding to headwinds facing the global economy and driving long-term interest rates higher.
With inflation moving closer to the US Federal Reserve’s target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts, she said. Overall, interest rates were expected to stay “somewhat higher for quite some time,” she said.
The IMF will release an update to its global outlook on Jan. 17, just days before Trump takes office. Georgieva’s comments are the first indication this year of the IMF’s evolving global outlook, but she gave no detailed projections.
In October, the IMF raised its 2024 economic growth forecasts for the US, Brazil and Britain but cut them for China, Japan and the euro zone, citing risks from potential new trade wars, armed conflicts and tight monetary policy.
At the time, it left its forecast for 2024 global growth unchanged at the 3.2 percent projected in July, and lowered its global forecast for 3.2 percent growth in 2025 by one-tenth of a percentage point, warning that global medium-term growth would fade to 3.1 percent in five years, well below its pre-pandemic trend.
“Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region.”
Georgieva said it was “very unusual” that this uncertainty was expressed in higher long-term interest rates even though short-term interest rates had gone down, a trend not seen in recent history.
The IMF saw divergent trends in different regions, with growth expected to stall somewhat in the European Union and to weaken “a little” in India, while Brazil was facing somewhat higher inflation, Georgieva said.
In China, the world’s second-largest economy after the United States, the IMF was seeing deflationary pressure and ongoing challenges with domestic demand, she said.
Lower-income countries, despite reform efforts, were in a position where any new shocks would hit them “quite negatively,” she said.
Georgieva said it was notable that higher interest rates needed to combat inflation had not pushed the global economy into recession, but headline inflation developments were divergent, which meant central bankers needed to carefully monitor local data.
The strong US dollar could potentially result in higher funding costs for emerging market economies and especially low-income countries, she said.
Most countries needed to cut fiscal spending after high outlays during the COVID pandemic and adopt reforms to boost growth in a durable way, she said, adding that in most cases this could be done while protecting their growth prospects.
“Countries cannot borrow their way out. They can only grow out of this problem,” she said, noting that the medium-growth prospects for the world were the lowest seen in decades.


Italy sees surge in migrant crossings despite PM’s tough stance

Italy sees surge in migrant crossings despite PM’s tough stance
Updated 5 sec ago
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Italy sees surge in migrant crossings despite PM’s tough stance

Italy sees surge in migrant crossings despite PM’s tough stance
  • Country sees 40% rise driven by Pakistanis and Bangladeshis, despite numbers elsewhere in Europe dropping 
  • Italy struck deals last year with authorities in Libya, Tunisia to halt Mediterranean crossings

London: Italy has experienced a sharp rise in the number of migrants arriving illegally this year, damaging Prime Minister Giorgia Meloni’s reputation for being tough on migration, The Times reported.

While Europe broadly has seen numbers of migrants decline, Italy saw an increase of 40 percent despite Meloni’s government striking deals last year with authorities in Libya and Tunisia to halt Mediterranean crossings, which initially led to a 58 percent drop.

The number of migrants reaching Italy so far this year is 8,232, up from 5,912 in the same period in 2024.

The increase has been driven by a 68 percent rise from Libya, facilitated by hundreds of Pakistanis and Bangladeshis arriving in the North African country to make the journey to Europe.

So far this year, 3,195 Bangladeshis and 1,247 Pakistanis have crossed into Europe, with more than half traveling to Italy.

Frontex, the EU’s border force, said labor deals between Libya and Bangladesh were making the journey easier for migrants.

It added that overall, there had been a drop in people reaching Europe of around 25 percent, including to Greece, Spain and the Balkans. The total number to reach Europe so far this year stands at around 25,000. The number of crossings from France to the UK, meanwhile, is down 28 percent.

Frontex said traffickers are using faster boats with more engines to avoid the Italian Coast Guard, with migrants paying up to €8,000 ($8,737) for the crossing.

“Smugglers are using them to get people quickly out of Libyan waters, avoiding patrols in the early stages,” a Frontex spokesman said.

“In January alone, nearly 30 of these types of boats carrying nearly 1,500 people were detected.” 


Ghosts of fast fashion: Has colonialism ruined Bangladesh’s luxury fabric trade?

Ghosts of fast fashion: Has colonialism ruined Bangladesh’s luxury fabric trade?
Updated 57 min 50 sec ago
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Ghosts of fast fashion: Has colonialism ruined Bangladesh’s luxury fabric trade?

Ghosts of fast fashion: Has colonialism ruined Bangladesh’s luxury fabric trade?
  • Dhaka was the global center of muslin and fine handloom weaving until British colonial rule
  • Top model and designer Bibi Russell spearheads a movement to revive Bangladeshi textile art

DHAKA: Now a hub of cheap, mass-produced clothing for global brands, Bangladesh was for centuries known as the opposite — a center of coveted luxury textiles. The European appeal of these fine fabrics in the late 18th century marked the beginning of the industry’s decline, ultimately leading to its eventual erasure.

Historically, eastern Bengal — now Bangladesh — was renowned for its master weavers of silk and cotton textiles and particularly for muslin, a lightweight fabric crafted from extremely fine handspun yarns.

Dhaka became the center of muslin weaving in the early 17th century when the fabric became popular on the Indian subcontinent under the Mughal Empire. It dominated the global market for 200 years.

“Dhaka muslin was a symbol of tradition and royal nobility in this land. It was celebrated for its magnificent design and exceptional craftsmanship, earning worldwide acclaim. So fine was its weaving that an entire muslin sari could easily pass through a finger ring,” said Mohammad Ayub Ali, head of the muslin revival project at the Bangladesh Handloom Board, which works to preserve classical Bengali weaving techniques.

“Traders from various European countries, including England, the Netherlands, Portugal and Greece, were actively engaged in the muslin trade.”

This flourishing market was, however, soon overshadowed by colonial influence. Bengal’s textile industry began to wither after the British East India Company conquered the region in the mid-18th century, took control of the industry and exploited it beyond its limits.

In his 1772 work “Considerations on India Affairs,” merchant William Bolts of the British East India Company describes weavers being forcibly taken from their workplaces to produce textiles at English factories. Some resorted to self-mutilation — cutting of their own thumbs — in a desperate attempt to escape forced labor.

Another devastating blow to the native industry came with the tariffs imposed by the British colonial rulers, as England entered the Industrial Revolution and itself began mass-producing fabrics.

“The British rulers suppressed our local cotton producers and muslin weavers to create a favorable market for (their) textiles. Cheap textiles started to pour into our markets ... In the middle of the 19th century, muslin production in Dhaka was completely stopped,” Ali said.

“We were forced to import British clothes ... We once had 100 percent local input in cotton production, weaving and the expertise required to create world-class garments. But now, we only produce ready-made clothing as tailors.”

Bangladesh is the second-largest exporter of ready-made garments in the world, after China, producing large volumes quickly and cheaply. Around 4 million people are employed in factories, where unsafe working conditions, frequent deadly accidents and monthly wages that rarely exceed $120 regularly make headlines in both local and international press.

There is a direct link between the exploitative sector and colonial legacy.

“The colonizers systematically dismantled our thriving artisan economy ... The destruction of that heritage was not just about economics; it was about erasing a culture of excellence and self-reliance,” top Bangladeshi model and celebrated designer Bibi Russell, renowned for her efforts to revive her homeland’s textile art, told Arab News.

“While Bangladesh has become one of the largest exporters of ready-made garments in the world, we must ask ourselves at what cost. The fast fashion industry has created millions of jobs, but it has also perpetuated a system where workers are often undervalued, artisans are sidelined, and our natural resources are exploited. In many ways, it reflects a continuation of the exploitative systems of the past, where the value of human skill and creativity is sacrificed for profit.”

Bibi Russell speaks to Bangladeshi TV in December 2024. (Bibi Russell)

Russell is an advocate of the growing defashion movement, which calls for a shift away from the disposable culture of fast fashion — including its overconsumption, environmental degradation and the exploitation of workers in countries where labor laws and wages are poor.

She believes such a change is possible as the world is waking up and the global fashion landscape is changing, with consumers becoming more conscious of sustainability and ethical practices.

“Bangladesh has an incredible opportunity to lead this change ... Our history shows that we are resilient, and I see an opportunity to reclaim our legacy as a hub of quality and innovation, not just quantity,” she said.

“By investing in our craftspeople and celebrating their work, we can create an industry that uplifts rather than exploits, honors rather than erases ... This is our moment to rewrite the narrative — not as victims of a colonial legacy, but as innovators and creators.”


Thailand says assured of Uyghurs’ safety after US visa bans

Thailand says assured of Uyghurs’ safety after US visa bans
Updated 15 March 2025
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Thailand says assured of Uyghurs’ safety after US visa bans

Thailand says assured of Uyghurs’ safety after US visa bans
  • Thailand on Saturday responded to a United States visa ban on officials from the kingdom involved in deporting dozens of Uyghurs back to China, saying it had “received assurances” of their safety

BANGKOK: Thailand on Saturday responded to a United States visa ban on officials from the kingdom involved in deporting dozens of Uyghurs back to China, saying it had “received assurances” of their safety.
The Thai government has suffered intense criticism from around the world for its decision to hand over at least 40 Uyghurs, who were flown by special plane to China’s northwestern Xinjiang region in late February.
The Uyghurs had spent years languishing in Thai detention facilities after fleeing China more than a decade ago.
On Friday US Secretary of State Marco Rubio announced visa restrictions on an unspecified number of former or current officials from Thailand involved in the deportation.
Thailand’s foreign affairs ministry said in a statement on Saturday it noted the US decision adding it had “received assurances from the Government of China concerning the safety of the Uyghurs.”
It said Thailand “will continue to follow up on the well-being of this group.”
Thailand is the oldest US ally in Asia but maintains friendly relations with Beijing.
“Thailand has always and will continue to value the long-standing and close treaty alliance with the United States,” the statement said.
The United States accuses China of genocide over its mass camps for Uyghurs, a mostly Muslim minority in the northwestern Xinjiang region.
China rejects the accusations and says it is providing vocational education to improve Uyghurs’ future.


Ukraine says shot down 130 Russian drones launched overnight

Ukraine says shot down 130 Russian drones launched overnight
Updated 15 March 2025
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Ukraine says shot down 130 Russian drones launched overnight

Ukraine says shot down 130 Russian drones launched overnight

KYIV: Ukraine said Saturday it had downed 130 Russian-launched drones across the country at night, as international efforts to end the three-year war intensify.
Kyiv’s air force said the Iranian-made Shahed drones were downed over 14 regions and that Moscow had also attacked with two ballistic missiles.


Musk says Starship to depart for Mars at end of 2026

Musk says Starship to depart for Mars at end of 2026
Updated 15 March 2025
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Musk says Starship to depart for Mars at end of 2026

Musk says Starship to depart for Mars at end of 2026

Washington: SpaceX founder Elon Musk said Saturday its massive Starship rocket would leave for Mars at the end of 2026 with Tesla humanoid robot Optimus onboard, adding that human landings could follow “as soon as 2029.”
“Starship departs for Mars at the end of next year, carrying Optimus. If those landings go well, then human landings may start as soon as 2029, although 2031 is more likely,” Musk said on his X social network.
Starship — the world’s largest and most powerful rocket — is key to Musk’s long-term vision of colonizing Mars.
NASA is also awaiting a modified version of Starship as a lunar lander for its Artemis program, which aims to return astronauts to the Moon this decade.
But before SpaceX can carry out those missions, it must prove the vehicle is reliable, safe for crew, and capable of complex in-orbit refueling — critical for deep space missions.
SpaceX faced a setback this month when its latest test flight of the Starship prototype ended in a fiery explosion, even as the booster was successfully caught in its orbital test.
It was a near replay of the previous attempt.
Minutes after liftoff and booster separation, a live video feed showed the upper stage tumbling uncontrollably before the signal abruptly cut.
The Federal Aviation Administration (FAA) said SpaceX will be required to conduct an investigation before it can fly again.