KunOpinions (English)

Saudi Arabia tightens its belt

Full version: https://www.ft.com/content/b50b2763-3435-42f9-8025-8c70ed776957

Saudi Arabia is adopting a more cautious economic strategy after years of large-scale projects under Vision 2030, including the $65 billion Diriyah Gate. Lower oil revenues and reduced production have led to spending cuts and project delays, though the government remains focused on hosting the 2027 Asian Football Cup and Expo 2030. Inflationary pressures in the construction sector persist, and while oil remains the primary income source, efforts to diversify have been slower than expected.

Germany’s Economy Goes From Bad to Worse

Full version: https://www.economist.com/finance-and-economics/2024/10/15/how-the-german-economy-went-from-bad-to-worse

Germany is facing its first two-year recession in over two decades, with a contraction of 0.2% forecasted for 2024 after a 0.3% decline in 2023. The country’s manufacturing sectors, particularly chemicals and metals, have been hit hard by high energy costs, while China’s industrial growth has decreased demand for German exports. Demographic challenges, such as an aging population, add to the structural issues limiting economic recovery.

An Economics Nobel for Work on Why Nations Succeed and Fail

Full version: https://www.economist.com/finance-and-economics/2024/10/14/an-economics-nobel-for-work-on-why-nations-succeed-and-fail

The 2024 Nobel Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their work on the role of institutions in economic development. Their research highlights the difference between "inclusive" institutions that spread wealth and "extractive" institutions that benefit a small elite. While their findings have influenced development economics, critics argue that their analysis selectively supports their conclusions, especially regarding settler mortality rates in colonial regions.

Why Investors Should Still Avoid Chinese Stocks

Full version: https://www.economist.com/finance-and-economics/2024/10/14/why-investors-should-still-avoid-chinese-stocks

Chinese stocks have experienced significant volatility, with speculative gains followed by sharp declines, driven by hopes for government stimulus that often fails to materialize. Despite some investors returning to the market, core issues such as poor corporate governance and unpredictable government policies persist, making Chinese stocks risky for long-term investment. The gap between China's economic growth and stock market performance highlights this ongoing challenge.

Can the World’s Most Influential Business Index Be Fixed?

Full version: https://www.economist.com/finance-and-economics/2024/10/10/can-the-worlds-most-influential-business-index-be-fixed

The World Bank’s "Doing Business" report was discontinued in 2021 after a data manipulation scandal, and its replacement, "B-Ready," aims to address these flaws. The new index introduces separate lists for regulation, public services, and operational efficiency, while also covering larger businesses and social aspects like workers' rights. While the new system offers richer data, subjectivity in factor selection remains an issue, but overall it is considered an improvement over the previous version.