The sector grew at nearly twice the global rate of 4.1 percent and significantly above the Middle East average of 5.3 percent, reflecting increased investment and policy focus under the Kingdom’s Vision 2030 strategy to diversify the economy beyond oil.Tourism Minister Ahmed Al Khateeb said the growth underscores the impact of sustained investment in destinations, infrastructure and connectivity, adding that the sector is delivering measurable economic returns.

Saudi Arabia has already exceeded its earlier target of attracting 100 million visitors and is now aiming for 150 million annually by the end of the decade. The sector’s $178 billion contribution accounts for nearly half of the Middle East’s total tourism GDP, positioning the Kingdom as the region’s largest market.

International visitor spending rose 8.2 percent in 2025, compared with a global average of 3.2 percent, highlighting strong inbound demand. The WTTC said business travel was a key driver, with spending increasing by more than 55 percent, reflecting Saudi Arabia’s growing role as a hub for corporate events and investment activity.

WTTC President and CEO Gloria Guevara said the region’s performance demonstrated the sector’s importance for economic growth, employment and international connectivity.

Across the region, the United Arab Emirates recorded tourism GDP of $68.5 billion, while Jordan and Oman each posted growth of 5.5 percent, with international visitor spending reaching $8.5 billion and $4 billion respectively.

In an interview, Banga said the World Bank expects global growth to decline by 0.3 to 0.4 percentage points under a baseline scenario assuming an early end to the conflict, and by as much as 1 percentage point if the war continues.

Inflation could rise by 200 to 300 basis points, with further increases of up to 0.9 percentage point in a prolonged conflict scenario.The bank now projects growth in emerging markets and developing economies at 3.65 percent in 2026, down from a previous estimate of 4 percent in October.

In a more severe scenario, growth could fall to as low as 2.6 percent. Inflation in these economies is forecast to reach 4.9 percent, compared to an earlier estimate of 3 percent, and could climb as high as 6.7 percent if disruptions persist.

The conflict has already driven oil prices up by about 50 percent while disrupting supplies of key commodities including oil, natural gas, fertilizers and helium, alongside impacts on tourism and air travel. Continued instability around the Strait of Hormuz remains a major risk factor, given its role in global energy flows.

Banga said the economic outlook depends heavily on whether ongoing negotiations lead to a lasting peace and the reopening of critical trade routes. Failure to stabilize the situation could result in longer-term damage to energy infrastructure and sustained pressure on global markets.

The World Bank has begun discussions with vulnerable countries, including small island states with limited energy resources, on accessing emergency funding through its crisis response mechanisms. These facilities allow governments to draw on pre-approved funds to manage immediate shocks without requiring new approvals.

At the same time, Banga cautioned governments against introducing unsustainable energy subsidies, warning such measures could worsen fiscal pressures in countries already burdened by high debt and elevated borrowing costs.

The crisis has intensified calls for energy diversification and greater self-sufficiency. Banga pointed to increased investments in refining capacity in countries such as Nigeria as an example of improving energy resilience, while noting ongoing World Bank support for expanding energy production in nations including Mozambique.

He added that scaling up nuclear, hydroelectric, geothermal, wind and solar energy would be critical to reducing reliance on traditional fuels and mitigating future shocks to global energy systems.

The proposed investments will target urban development, electric mobility, renewable energy and public infrastructure, according to the agreement. The initiative is expected to support the creation of tens of thousands of jobs over the next three to five years, although timelines for capital deployment were not disclosed.

As part of the plan, Vingroup is evaluating the development of integrated townships spanning about 1,000 hectares near Mumbai, with a projected investment of roughly $5 billion.

In the electric mobility segment, the group aims to deploy a fleet of 60,000 electric taxis, representing an additional investment of around $1.5 billion.The move builds on Vingroup’s growing presence in India, where its electric vehicle unit VinFast already operates a manufacturing facility in Tamil Nadu and has announced plans for a $3 billion ecosystem in Telangana.

Maharashtra accounts for approximately 14% of India’s gross domestic product and hosts a strong automotive manufacturing base, including major domestic players such as Mahindra and Mahindra and Tata Motors.

Managing Director Kristalina Georgieva said the war had caused the most severe disruption to global energy supply on record, with millions of barrels of oil production shut down due to Iran’s effective closure of the Strait of Hormuz.

“Instead, all roads now lead to higher prices and slower growth,” Georgieva told Reuters, adding that the IMF would cut its growth forecasts and raise inflation projections in its upcoming World Economic Outlook.

The conflict is expected to dominate discussions at next week’s IMF and World Bank spring meetings in Washington, where policymakers will assess the economic fallout from the crisis.

The Fund had previously anticipated a modest upgrade to global growth projections before the escalation.Georgieva said global oil supply had fallen by about 13%, with knock-on effects extending beyond energy markets into supply chains for commodities such as fertilizers and helium.

Brent crude prices have risen to around $110 per barrel, reflecting tightening supply conditions.She warned that even a swift resolution would leave a lasting economic impact, while a prolonged conflict would deepen inflationary pressures and further dampen growth prospects.

The effects are expected to be uneven, with energy-importing countries facing the greatest strain. Many low-income economies lack the fiscal capacity to cushion rising costs, increasing risks of economic instability and social unrest.

Georgieva said some countries had already sought financial assistance from the IMF, which could expand existing lending programs to address urgent needs. She cautioned against broad energy subsidies, arguing they could exacerbate inflation.Energy exporters have also been affected.

Damage to production infrastructure has slowed output recovery in some countries, including Qatar, where restoration of natural gas capacity could take several years.The IMF is coordinating with other global institutions, including the International Energy Agency and the World Bank, to assess the broader implications of the conflict.

Georgieva also highlighted risks to food security, noting that disruptions to fertilizer supplies could trigger wider shortages if the conflict continues.

The World Food Programme has warned that millions could face acute hunger if conditions worsen.

The scheme would provide government-backed guarantees to banks for lending over a four-year period, mirroring measures introduced during the COVID-19 pandemic to sustain credit flow to stressed sectors.

The guarantees are expected to cover up to 90% of loans of up to 1 billion rupees ($10.75 million), the sources said.The fiscal cost of the plan is estimated at 170 billion to 180 billion rupees ($1.83 billion to $1.94 billion), according to the sources, who declined to be identified as discussions are ongoing.

Indian businesses, including textile and glass manufacturers, have been affected by supply disruptions linked to the war involving Iran, while rising energy prices have added to cost pressures.

As the world’s third-largest oil importer, India remains particularly exposed to volatility stemming from the closure of the Strait of Hormuz, a key route for global energy shipments.The government is also grappling with broader macroeconomic risks, including the prospect of higher inflation and slower growth as fuel costs rise and supply chains tighten.

The proposed guarantees are intended to encourage banks to continue lending despite heightened risks, ensuring businesses can meet obligations and sustain operations during the crisis.

India deployed a similar credit guarantee programme in 2020 to support sectors such as travel and tourism during the pandemic, helping firms resume operations and manage debt burdens.

The HSBC flash India Composite Purchasing Managers’ Index, compiled by S&P Global, fell to 56.5 from February’s 58.9, missing expectations in a Reuters poll and marking the sharpest slowdown in 18 months. While readings above 50 indicate expansion, the drop signalled a loss of momentum at the end of the fiscal year.

Manufacturing slowdown deepensThe manufacturing sector bore the brunt of the slowdown, with its PMI declining to a 4-1/2-year low of 53.8 from 56.9. Factory output growth weakened to its softest pace since August 2021, reflecting heightened uncertainty and subdued consumer demand.

The services sector, which makes up the bulk of India’s economy, also eased, with its PMI slipping to 57.2 from 58.1.Cost pressures intensifyInput costs rose at their fastest pace since June 2022, driven by higher prices for oil, energy, food, metals and chemicals.

Firms responded by increasing selling prices at the quickest rate in seven months, though some absorbed costs by compressing margins.India’s heavy reliance on imported energy has amplified the impact.

As the world’s third-largest oil importer, it sources about 90% of its crude and nearly half of its natural gas from overseas, making it vulnerable to price shocks linked to disruptions in the Strait of Hormuz. Oil prices have risen more than 40% since the conflict began.

External demand offers supportDespite weakening domestic demand, international orders rose to their highest level since the sub-index was introduced in 2014, with businesses reporting increased demand from Asia, Europe, the Americas and the Middle East.

Business confidence improved to its strongest level since September 2023, supporting the fastest pace of job creation since August, even as inflation risks mount and growth prospects face renewed pressure.

Federal employees are set to return to work, and essential services such as air travel and food assistance programs are resuming operations, bringing normalcy back to millions of American households.

While political divisions remain, the reopening demonstrates the resilience of American democracy and the determination of its people to overcome challenges through dialogue and compromise.

The move is being welcomed nationwide as a sign of progress toward rebuilding trust in governance and ensuring citizens receive the support and services they deserve.

The reopening comes after a 43-day shutdown that temporarily halted key federal functions and left more than a million workers unpaid. With operations resuming, the government aims to restore confidence among citizens and global partners, while addressing the economic impacts caused by the closure.

The decision to resume funding ensures that agencies can move forward with essential programs, strengthening public services and community welfare.

The end of the shutdown also represents a shared acknowledgment that cooperation is crucial to progress.

Lawmakers from both sides have expressed their commitment to preventing such disruptions in the future, emphasizing that the wellbeing of Americans should always come before political disagreements.

This renewed focus on unity is seen as a vital step toward a stronger and more balanced political environment.

Economic recovery is now a top priority, as delayed spending of nearly $50 billion is expected to restart, generating new momentum for growth.

Analysts anticipate that the reopening will stimulate market confidence and provide relief to sectors that faced temporary setbacks during the shutdown.

Although some economic activity was lost, experts predict a strong rebound driven by increased consumer spending and renewed government operations.

The return of SNAP food benefits to over 42 million Americans is among the most positive outcomes of the reopening. Families who depend on federal food assistance can now plan ahead without fear of interruptions, ensuring that communities remain supported and nourished.

Similarly, the restoration of air travel and transportation systems is helping people reconnect with loved ones and businesses resume operations smoothly.

Federal employees, who showed exceptional patience and professionalism during the shutdown, are now preparing to resume their roles with renewed dedication.

Their resilience serves as a powerful reminder of the importance of public service and the strength of the American workforce. Back pay will soon be issued, offering much-needed financial stability to households affected by the month-long disruption.

Looking ahead, policymakers are expected to engage in discussions aimed at ensuring long-term funding stability and reducing the likelihood of future shutdowns.

The spirit of cooperation emerging from this experience offers hope for more constructive policymaking that prioritizes the needs of citizens over political rivalry.

The reopening of the U.S. government has reignited optimism across the country. It stands as a moment of unity, progress, and renewed focus on national growth.

The nation moves forward with lessons learned, ready to strengthen its democratic institutions, economy, and commitment to public service.

As the government resumes full operation, the collective message is clear — America’s resilience, unity, and dedication to recovery remain unshaken.

The reopening is not just the end of a shutdown but the beginning of a stronger and more connected future for all Americans.

Despite political debates and internal discussions, Starmer’s leadership continues to prioritize progress, responsibility, and national renewal.

Prime Minister Keir Starmer has reaffirmed his leadership vision, emphasizing unity and responsibility within the Labour Party.

Amid upcoming fiscal decisions and growing global attention, Starmer continues to advocate for collective focus on rebuilding the British economy and restoring public confidence.

The recent discussions among Labour lawmakers reflect a period of internal reflection, not division.

Starmer’s decision to meet MPs in person underscores his willingness to engage directly and transparently with his team, fostering dialogue and cooperation before the budget.

Political observers note that Starmer’s leadership style has consistently centered on policy delivery rather than political theatrics.

By prioritizing long-term solutions over short-term optics, the prime minister aims to strengthen Britain’s position as a forward-looking and economically secure nation.

Despite reports of differing opinions, many lawmakers continue to support Starmer’s emphasis on responsibility, fairness, and fiscal balance.

The government remains committed to protecting key public services while addressing challenges such as inflation, cost of living, and sustainable welfare spending.

The upcoming budget, scheduled for late November, is expected to outline Starmer’s long-term strategy for balanced growth and responsible governance.

Finance Minister Rachel Reeves has been working closely with the prime minister to ensure policies remain consistent with Labour’s promises of economic integrity and social support.

While some members have expressed concerns over communication, Starmer has taken a proactive stance to strengthen engagement.
His meetings with MPs across regions highlight an open-door approach, reflecting his dedication to collaboration and shared responsibility.

Observers believe the prime minister’s calm and pragmatic response demonstrates his ability to manage both internal feedback and external pressures.

Starmer’s measured leadership contrasts with the turbulence that often characterizes British politics, positioning him as a steady hand during a complex global climate.

Economic experts anticipate that the government’s upcoming budget will prioritize job creation, healthcare investment, and infrastructure renewal.

These efforts align with Labour’s broader vision of fairness, equality, and modern governance designed to empower working families and small businesses.

Starmer’s leadership has also been praised internationally for strengthening diplomatic relations and maintaining Britain’s global standing.
His focus on cooperation, transparency, and accountability continues to set a positive tone in both domestic and foreign policy.

Party insiders highlight that unity and focus are central to Starmer’s next steps. The government is expected to continue consultations with lawmakers and experts, ensuring every policy reflects public interest and long-term national growth.

Starmer remains confident that the upcoming months will demonstrate the government’s commitment to fairness, stability, and opportunity for all citizens.

His leadership vision—rooted in service, progress, and accountability—continues to guide Britain through a time of renewal and reform.

As the budget announcement approaches, the prime minister’s focus on discipline, dialogue, and delivery defines his approach.

He seeks to reaffirm trust in political leadership by ensuring that every decision aligns with the needs of the people and the principles of good governance.

The MSCI global equity index posted modest gains, reflecting confidence in a soft-landing scenario for major economies.
Meanwhile, U.S. Treasury yields slipped, suggesting that investors anticipate easier financial conditions in the months ahead.

In New York, the Dow Jones Industrial Average rose steadily, buoyed by strength in value stocks and renewed market breadth.
While technology shares saw mild selling, cyclical sectors such as finance and energy led the rally, signaling broader investor participation.

Market analysts said the easing of bond yields underscored rising optimism about inflation moderation and potential policy support.
The yield on 10-year U.S. Treasury notes dropped to around 4.06%, marking a notable decline that reflects improving market sentiment.

European stocks joined the global rally, with both the STOXX 600 and FTSEurofirst 300 hitting record highs.
Banking and industrial shares led gains as investors positioned for stable growth and steady borrowing conditions.

The improved outlook also comes as U.S. lawmakers prepare to vote on a bipartisan agreement to reopen government agencies.
The resolution of the longest shutdown in U.S. history is expected to restore economic clarity and resume crucial data releases.

In currency markets, the dollar strengthened slightly against the yen, while the Japanese currency hovered near nine-month lows.
Officials in Tokyo reaffirmed their commitment to monitoring exchange rates, ensuring stability amid changing global dynamics.

Analysts noted that the gradual return of risk appetite is fueling optimism across global markets.
Many expect further recovery in equity performance as interest rate cuts and fiscal stability provide a supportive backdrop.

Federal Reserve officials have also signaled a potential shift toward accommodative measures to sustain economic growth.
Comments from New York Fed President John Williams hinted at the possibility of restarting bond purchases to manage short-term rates effectively.

The market also reacted to news of Atlanta Fed President Raphael Bostic’s planned retirement in early 2026.
Analysts believe his replacement could lean toward dovish policies, aligning with the White House’s preference for lower borrowing costs.

Investors are also watching the technology sector closely as spending on artificial intelligence continues to drive corporate strategy.
Despite short-term volatility, sentiment remains positive for AI-related investments and innovation-driven growth.

Global equity strategists highlighted that the market’s resilience reflects confidence in central bank coordination and policy clarity.
With inflation easing and liquidity improving, the conditions appear favorable for continued equity inflows.

Market participants are also encouraged by renewed corporate earnings momentum, especially in financial and industrial sectors.
This shift toward value-oriented strategies underscores expectations of long-term economic expansion.

As the Fed’s next policy meeting approaches, analysts predict a measured approach that balances growth with inflation management.
Investors remain focused on data-driven decisions and the gradual normalization of global financial markets.

Overall, the decline in U.S. bond yields and the steady rise in global stocks signal renewed optimism in the global economy.
With improving fiscal coordination, easing inflation pressures, and strong corporate resilience, markets are positioned for sustained progress in 2026.

Investor confidence lifts markets as signs of progress in Washington spark a strong rally

Wall Street opened the week on a positive note as major indexes climbed amid renewed optimism over a potential resolution to the U.S. government shutdown. The encouraging developments in Washington have reignited investor confidence and strengthened hopes for economic stability and growth.

The Dow Jones Industrial Average, S&P 500, and Nasdaq all posted solid gains, reflecting the market’s relief over signs of cooperation among lawmakers. The news came as senators advanced a bill to temporarily fund the government until late January, offering much-needed assurance to businesses and investors alike.

This progress boosted market sentiment and eased fears that the shutdown could extend further. Investors viewed the move as a sign that the government is taking steps to protect economic stability, ensuring that essential functions continue without major disruption.

Technology stocks led the surge, with major players such as Nvidia, Alphabet, and Meta Platforms posting impressive gains. The sector’s recovery came after a week of volatility, reaffirming the strength and resilience of the tech industry that continues to drive U.S. innovation and market growth.

The S&P 500 saw significant upward momentum, supported by both technology and consumer discretionary stocks. Analysts noted that the rebound demonstrated investor trust in the U.S. economy’s long-term potential and its ability to overcome temporary challenges.

Market volatility also eased, with the CBOE Volatility Index dropping after reaching a recent high. This shift signaled improving investor sentiment as fears of prolonged economic uncertainty began to fade.

The Nasdaq surged more than one percent, driven by enthusiasm around artificial intelligence and semiconductor companies. These gains underscored how advancements in AI continue to shape the next phase of global technological leadership, placing U.S. markets at the center of innovation.

Meanwhile, the Russell 2000 index, which tracks small-cap stocks, also climbed, reflecting broader optimism across industries. Analysts highlighted that investor interest in growth and value sectors alike demonstrates confidence in market recovery.

Investors were also encouraged by strong earnings reports from leading companies. Data showed that more than 80 percent of S&P 500 firms had reported better-than-expected results for the third quarter, further supporting the bullish trend on Wall Street.

Eli Lilly’s shares jumped to a record high following an analyst upgrade, while pharmaceutical leader Pfizer strengthened its market position with a major acquisition. These moves reflected the healthcare sector’s ongoing growth and its crucial role in the broader economy.

Despite some declines in airline and health insurance stocks, the overall market momentum remained robust. The optimism surrounding government reopening outweighed short-term sectoral dips, as investors looked ahead to potential fiscal clarity and new opportunities.

Experts say the return of government operations could revive delayed economic data releases, allowing the Federal Reserve and markets to make more informed policy and investment decisions. This would bring greater transparency and predictability to the economic outlook.

Market strategists emphasized that cooperation in Washington will be key to sustaining momentum. A successful resolution could enhance consumer confidence, stimulate business activity, and strengthen global perceptions of U.S. financial stability.

As investors look forward to the end of political gridlock, Wall Street’s gains highlight a renewed sense of faith in America’s economic resilience. The rally reinforces the belief that the U.S. remains a powerhouse of innovation, technology, and growth.

The start of the week’s trading sessions paints a hopeful picture for markets and investors alike. With political progress, strong corporate performance, and revived optimism, Wall Street is poised to carry this positive momentum into the closing months of the year.