Latest news with #economicChallenges
Yahoo
11 hours ago
- Business
- Yahoo
Business leaders vote to hold interest rates amid economic uncertainty
Business leaders in the North East have voted to hold interest rates. The decision came during the June 2025 meeting of the North East Shadow Monetary Policy Committee (MPC), a group of business figures who provide regional economic insight in partnership with Newsquest, Clive Owen LLP, and Recognition PR. Five members voted to keep rates steady at 4.25 per cent, while two called for a cut. David Coates, managing director of Newsquest North, said: "Given all the uncertainty that there is at the moment, let's not add any further uncertainty, so steady as she goes and stay where we are." The committee cited ongoing economic challenges, including inflation above the Bank of England's 2 per cent target, rising costs, and geopolitical instability. Graham Robb, senior partner at Recognition PR, also voted to hold rates. Mr Robb said: "The extra national insurance cost has hit both profits and margins, and as a result there is a cut back on the quantity of things businesses buy." Nicola Bellerby, tax partner at Clive Owen LLP, emphasised the impact of rising National Insurance contributions. Ms Bellerby said: "The cost of the National Insurance rises is starting to be felt, and the statistics are quite scary." She voted to hold rates, noting the pressures on businesses and the importance of controlling inflation. Arnab Basu, CEO and founder of Kromek Group plc, highlighted wage pressures and global instability. Mr Basu said: "There is a wage inflation coming in our sector because there's not enough engineers, particularly in the North East." He also voted to hold rates, referencing concerns about energy prices and the broader international economic environment. Donna James, research director at Populus Select, pointed to optimism in technical fields but warned of broader risks. Ms James said: "We are in danger of seeing wage inflation, and I'm worried about oil prices driving inflation with the situation in Iran and Ukraine." She also supported holding rates to maintain stability. However, not all members agreed. Martyn Tennant, head of the corporate team at Swinburne Maddison, voted for a cut. Mr Tennant said: "Businesses need the support of a rate cut now to help them through economic challenges." Kevin Brown of Pacifica Group also backed a rate reduction, citing concerns about consumer finances. Mr Brown said: "I'm concerned about the consumer debt that no one's talking about. Recommended reading Darlington charity warns financial pressure threatens survival as festival cancelled Rishi Sunak calls for £1.4bn A66 road upgrade to be given green light North East business confidence rises - and its 'good news' for job prospects "I think that will end up being a depressant on the retail sales market both in hospitality and in physical goods." The Shadow MPC's views reflect ongoing uncertainty and the varying pressures facing different sectors across the region. Their recommendations add a regional perspective to the national debate on monetary policy as the economic outlook remains mixed.
Times of Oman
3 days ago
- Business
- Times of Oman
IEA lowers global oil demand growth forecasts for 2025, 2026
Paris: The International Energy Agency (IEA) reduced its global oil demand growth forecast for this year (2025) to 720,000 barrels per day, down from the previous estimate of 740,000 barrels per day. In its monthly report issued today, the IEA also lowered its 2025 demand growth forecast to 740,000 barrels per day, compared to the earlier projection of 760,000 barrels per day. The agency attributed these adjustments to anticipated economic challenges in the medium term. Conversely, the IEA raised its global oil supply forecast, expecting an increase of 1.8 million barrels per day this year, up from the previous estimate of 1.6 million barrels per day. The report indicates that oil supply will remain adequate in global markets this year, provided there are no major disruptions.
Irish Times
4 days ago
- Business
- Irish Times
State must meet ‘unprecedented challenges' against backdrop of significant economic threats, says Taoiseach
Ireland must meet 'unprecedented challenges' in areas such as housing and infrastructure against a backdrop of significant economic threats, political leaders will say on Monday. Taoiseach Micheál Martin and Tánaiste Simon Harris are to address the National Economic Dialogue, a pre- budget event taking place at Dublin Castle involving trade unions, employers and other interest groups. Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers are also due to speak. In his opening address, Mr Martin will outline the dialogue's importance in the planning process for Budget 2026 and the years to follow at a time of global uncertainty and 'unprecedented challenges'. READ MORE He will advocate for accelerated delivery of housing and infrastructure, as well as projects in the areas of health, energy, water, disability and child wellbeing. Climate change is the 'existential challenge' of our time and will be central to Government deliberations and priorities, he will tell the event. The Fianna Fáil leader will call for 'courage and ambition' to be matched with careful planning and management of the national finances, pointing to the allocation of billions of euro to long-term investment funds in recent years. However, he will say the country has to prepare by 'controlling the controllables' and being ready to take 'brave and difficult decisions' on housing and infrastructure in order to 'seize opportunities for growth'. Meanwhile, Mr Harris will tell the event that the threat of further tariffs represents 'the most serious challenge to transatlantic economic relations in generations'. He will argue that the European Union must remain steadfast in pursuing 'substantive, calm, measured and comprehensive dialogue' with the United States in order to avoid the imposition of further levies. The Tánaiste will say this year's budget must be framed to ensure Ireland remains competitive in a turbulent global economy. He will say the greatest challenge and strain the Irish economy faces remains housing, and that the upcoming budget and National Development Plan must prioritise the construction of homes. Mr Harris will also focus on the importance of Ireland taking its own actions to boost competitiveness and protect businesses. He will also stress the need to reduce barriers at EU level so businesses can grow. The Fine Gael leader will also say that EU plans for regulatory reform cannot mean 'a race to the regulatory bottom'. 'It has to be about better regulation, not deregulation.' Mr Donohoe will tell the event a revised EU fiscal framework means, in practical terms, that the Government must commit to a defined path for net public expenditure for the next five years. Mr Donohoe will warn that the State's headline financial surplus 'masks considerable vulnerabilities'. 'Much of the headline balance arises from a handful of large multinationals and, as I mentioned, the mood music is changing. It is not appropriate – indeed it could be dangerous – to plan on the basis of these receipts being permanent,' he will say.
Globe and Mail
13-06-2025
- Business
- Globe and Mail
To boost productivity, more young Canadians must go into the skilled trades
Interested in more careers-related content? Check out our new weekly Work Life newsletter. Sent every Monday afternoon. The spotlight is now on skilled trades and with good reason. Looking at the trends, the demand for workers will be high and the supply will be constrained, meaning potential shortages in many occupations for years to come. And, unlike the situation in traditional white-collar positions, jobs in the trades aren't likely to be replaced by artificial intelligence. Workers can't be trained overnight to fill needs, however, so the real question might be whether we will have enough skilled workers to meet the needs of a Canadian economy facing some major economic challenges. A May report on Canada by the Organisation for Economic Cooperation and Development (OECD) outlined some of the economic issues at stake in Canada. At the top of the list is Canadian productivity, which is close to the OECD average but well below that of many advanced nations including the United States. Added to that, similar to other countries, Canada will have to deal the reality of a changing climate, which will mean a need for 'green skills'. More specific for Canada is the need to build a substantial amount of new housing. For all of these challenges, the report sees having the right workers in place as being vital and that means having enough workers in the skilled trades. At the moment, however, the skilled trades are under-represented in the Canadian workforce. According to a 2024 report from Statistics Canada, the country leads the G7 in having the most educated workforce as measured by college and university graduates, but the same cannot be said for those in the trades. In fact, the number of working age apprenticeship certificate holders is falling. In 2021 (the last year for which data is available) there were 1.62 million tradespeople employed in Canada, a drop of 5.7 per cent from 2016. Although some of this was because of pandemic closures, the pandemic also caused record declines in those registering for training in the trades, which does not bode well for supply. With baby boomers and Gen Xers rapidly exiting the workforce, the number of vacancies in the trades is rising, suggesting any current skill shortages will only be amplified over time. The OECD estimates that between retirements and new demand Canada will have about 1.2 million job openings in the trades over the next decade, which will account for about 15 per cent of all job openings. The timing is right for young workers to take a good look at the trades. The May Labour Force Survey showed that the Canadian unemployment rate for youth aged 15 to 24 was 14.1 per cent, more than twice the 6.9 per cent rate for the overall labour force. The weakness in the market suggests that many young workers should be open to the idea of acquiring training in the trades. The OECD report lists that benefits of doing so include the fact that in Canada young adults with vocational secondary or post-secondary non-tertiary education out-earn their peers with a general education by about 25 per cent. An added bonus is that apprenticeships are typically paid, which means young workers can start their careers without student debt. As for AI, for the moment, it doesn't seem likely it will have a huge immediate effect on employment in the trades. To be sure there are many applications of AI that will change the nature of trades, from using AI software to diagnose plumbing problems to utilizing it for training. Completely replacing workers with robots or any kind of technology does not seem to be practical however and any impact would likely be more muted than for many other professions. If traditional white-collar jobs appear to be the ones most at risk of being replaced, skilled trades would be at the bottom of the list. Policy is slowly shifting to deal with the need for workers in the skilled trades although it might not be shifting quickly enough. In one of his first policy acts after taking office, Prime Minster Mark Carney announced a plan to support apprenticeship training with the release accompanying the announcement to say that 'The work of bricklayers, crane operators, welders and others are essential in building the future of Canada'. The OECD report recommends that Canada go much further to increase the supply of workers, starting with eliminating the differences between provincial regulations that make it difficult for workers to move between provinces. None of the concerns around the trades are actually new and we have known for decades that the demographics would mean a wave of retirements and the need for workers. Interestingly, that was supposed to happen for a wide range of occupations but technological shifts are changing that story in many cases. With the trades bucking that trend and with the economic need for skills so high, now would be the perfect time for the public and private sectors to do what it takes and entice the labour market to shift in the right direction.
Zawya
10-06-2025
- Business
- Zawya
Nigeria: Utilise subsidy gains to fix economy, experts tell FG
An economist, Prof. Sherifdeen Tella, has urged the Federal and state levels of government to utilise petroleum subsidy gains to address their economic challenges, in order not to incur more debt from new loans. According to the News Agency of Nigeria (NAN), Tella, who lectures at the Department of Economics, Babcock University, gave the advice in an interview with the NAN in Lagos, on Monday. President Bola Tinubu has formally requested the approval of the National Assembly to borrow $21.5 billion from external sources and issue a N757.98 billion domestic bond to address critical national needs. These range from infrastructure and social services to the settlement of long-standing pension arrears. The President's letters, which were separately read during Tuesday's plenary sessions in both chambers of the National Assembly, detailed a wide-ranging financing strategy aimed at revitalising key sectors of the economy. Tella noted that the tiers of government's plan to secure new loans amid petroleum subsidy removal gains was not convincing enough. 'Since the petroleum subsidy removal, the monthly allocation to the various tiers of government has drastically increased, so the gains should be used to address their needs. 'Therefore, the need for more loans should not arise immediately, without accounting for the current allocation,' Tella said. He stressed that the country should be more innovative in fixing infrastructure, so as not to burden the economy with debt. 'The tiers of government should leverage private sector participation in addressing the infrastructural gap of the people. 'Just as it's been done in other climes, where the government only issues guidelines and the private companies fund and manage them for a few years,' Tella said. He emphasised that the tiers of government should embrace domestic resource mobilisation in fixing their developmental issues in the economy. Also, Dr Ayo Teriba, Chief Executive Officer (CEO) of Economic Associates, has advocated for equity investment as one of the panaceas in fixing the infrastructural component of the economic challenges. 'Equity investment comes with transparency and rigor for accountability in the process. 'Its process is often prioritised before such investment is made, unlike the government which executes projects as they arise,' Teriba said. He stressed that although there are alternative ways to fund the infrastructural gap, the government should give more clarity regarding the expected loans. 'The loan request is not clear enough, particularly in respect to the sub-national levels of government,' Teriba said. NAN reports that the federal government has clarified that the external borrowing component of the 2025 budget, valued at $1.23 billion, has not yet been accessed and is scheduled for disbursement in the second half of the year. The Federal Ministry of Finance disclosed this position on Wednesday in response to the formal request submitted by the President to the National Assembly on May 27, seeking approval for the 2024–2026 External Borrowing Rolling Plan. According to the ministry, the Borrowing Rolling Plan should not be confused with actual borrowing for any given year.
