China’s economy grew by 5% in 2024, successfully meeting its official growth target of “around 5%” despite ongoing domestic and global hurdles. According to the National Bureau of Statistics, this growth was achieved following a series of stimulus measures introduced late last year, aimed at addressing both internal and external challenges.

A persistent property crisis, now in its fourth year, continues to weigh on the economy, with consumer spending remaining subdued as households prioritize saving amid economic uncertainties. On the global stage, China finds itself at odds with the US on issues ranging from advanced technologies to trade.

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The Chinese government’s efforts, including interest rate cuts, increased liquidity for banks, and a $1.4 trillion debt-swap program for local governments, began showing results in late 2024. Key sectors, such as industrial production, picked up pace as a result. In the final quarter of 2024, China’s GDP surged by 5.4%, exceeding expectations, with President Xi Jinping stressing the importance of hitting the country’s growth target.

Guo Shan, a partner at Hutong Research based in Shanghai, commented, “China’s Q4 data exceeded expectations, positioning the country to meet its annual growth goal.”

Looking ahead to 2025, Guo anticipates that China will aim for another 5% growth target, while Alicia Garcia Herrero, chief Asia Pacific economist at Natixis, notes that growth momentum might carry into the early part of the year. A strong export performance is expected as companies rush to ship goods abroad in anticipation of new tariffs under the incoming Trump administration.

However, Garcia Herrero also highlights the uncertainty surrounding China’s export outlook, which is complicated by rising geopolitical tensions. To further support the economy, the government may roll out additional fiscal stimulus, possibly allocating 1 trillion yuan ($137 billion) for social welfare initiatives and cash handouts to families with children, according to Hutong Research’s Guo.

He adds that Beijing is likely to announce a fiscal deficit target of around 4%, providing more funds for general public spending. “Whichever sector is lagging will likely receive additional support,” Guo says.

The global economy is projected to grow by 2.7% in 2025 and 2026, maintaining the same pace as in 2024, according to the latest report from the World Bank. This steady growth signals a phase of stabilization, with inflation and interest rates expected to gradually decrease.

For developing economies, growth is expected to remain resilient over the next two years, holding steady at around 4%. However, this growth is still constrained compared to pre-pandemic levels, raising concerns about the ongoing challenge of poverty reduction and broader development goals.

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The World Bank highlighted that developing economies, which account for 60% of global growth, are likely to conclude the first quarter of the 21st century with the weakest long-term growth prospects since 2000. The first decade of the century saw remarkable growth, but the aftermath of the 2008 financial crisis, along with other global challenges, has slowed down progress.

Economic integration has weakened, as foreign direct investment (FDI) inflows and GDP share in developing economies are now roughly half of what they were in the early 2000s. Meanwhile, global trade restrictions have surged in 2024, with new barriers reaching five times the average of the 2010-2019 period. As a result, global economic growth has diminished, dropping from 5.9% in the 2000s to 5.1% in the 2010s, and now to 3.5% in the 2020s.

In a statement, Indermit Gill, the World Bank’s chief economist, expressed concern over the future challenges facing developing economies: “The next 25 years will be tougher than the last 25. Most of the factors that once boosted their rise have faded. In their place, we now face tough headwinds: high debt, weak investment, slow productivity growth, and the escalating costs of climate change.”

The report also noted the potential impact of US President-elect Donald Trump’s plan to implement a 10% tariff across a wide range of imports. This could further hinder an already sluggish global economic recovery.

However, there is still hope for stronger-than-expected growth if the world’s largest economies, particularly the US and China, regain momentum.

The increasing importance of developing economies is evident in the shifting global economic landscape. Developing nations now represent 45% of global GDP, up from just 25% in 2000. This growth is largely driven by rapid urbanization, industrialization, and technology adoption in regions like Asia, Africa, and Latin America.

Key factors fueling this expansion include the rise of the middle class, infrastructure development, and an expanding services sector. The World Bank reports that more than 40% of exports from developing economies now go to other developing nations, a significant increase from 20% in 2000. Additionally, these countries are becoming crucial sources of capital flows, remittances, and development aid to others.

M Ayhan Kose, the World Bank’s deputy chief economist, emphasized that developing economies must adopt bold, innovative policies to capitalize on new opportunities for cross-border cooperation amid a landscape shaped by policy uncertainty and escalating trade tensions.

The participation of young people in the global labour market is on a sharp decline, particularly in low-income countries, according to the latest report from the International Labour Organization (ILO). This worrying trend highlights a growing challenge: a generation increasingly disconnected from education, employment, and training.

Key Insights

• Rising NEET Generation: The number of young men classified as part of the NEET generation—neither in education, employment, nor training—has surged, particularly in low-income nations. The ILO reports a 4 percentage point increase in NEET rates among young men in these countries compared to pre-pandemic levels, leaving many vulnerable to economic instability.
  
• Gender Disparities Persist: Despite the challenges young men face, their labour market participation still outpaces that of young women. In low-income countries, over 20% of young men are not working or studying, but this figure climbs to a staggering 37% for young women.
  
• Global Employment Trends: On a broader scale, the global unemployment rate remains steady at 5%, similar to 2023 levels. However, youth unemployment far exceeds this, sitting at 12.6%—underscoring the disproportionate burden on younger generations.
  

Structural Challenges

The ILO report also emphasises a troubling return to pre-pandemic levels of informal employment and “in-work poverty.” These issues, combined with wage growth that has yet to fully offset the erosion of incomes due to inflation, signal persistent vulnerabilities for workers worldwide.

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Economic And Social Risks

The ILO warns that while central banks have managed to reduce inflation without triggering severe contractions in labour markets, further fiscal tightening could lead to significant social unrest. Declining wages and stalled progress on worker protections only exacerbate these risks.

ILO Recommendations

To combat the exclusion of young people from the labour market and address broader workforce challenges, the ILO suggests:

1. Investing in Education and Training: Expanding access to vocational education and upskilling opportunities to bridge the gap between education and employment.
2. Boosting Social Protections: Enhancing safety nets in low-income countries to provide a buffer against economic shocks.
3. Leveraging Diaspora Resources: Mobilising remittances and diaspora funding to spur local development.
4. Developing Infrastructure: Creating job opportunities by investing in infrastructure projects, particularly in underdeveloped regions.

Looking Ahead

As youth unemployment and labour market exclusion continue to rise, the stakes are high for governments, organisations, and international institutions. The ILO’s call to action underscores the urgency of addressing these issues to secure a more inclusive and sustainable economic future.

Meta has announced it will dismantle its diversity, equity, and inclusion (DEI) initiatives, marking a significant retreat from these programs under increasing scrutiny from conservative critics and public pushback.

In a memo sent to employees worldwide, Janelle Gale, Meta’s vice president of human resources, revealed the company’s plans to dissolve its DEI team, discontinue equity-driven hiring and supplier diversity programs, and reorient its approach to workplace inclusion. CNN obtained the memo, the contents of which were later confirmed by a Meta spokesperson.

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“The legal and policy environment around DEI initiatives in the U.S. is evolving,” Gale wrote. “Recent Supreme Court rulings signal a shift in how courts view these efforts, reinforcing principles that discrimination based on inherent traits must neither be tolerated nor encouraged.”

The memo also acknowledged that the term “DEI” has grown increasingly polarizing, with some critics equating it to preferential treatment for certain groups.

As part of this shift, Maxine Williams, Meta’s chief diversity officer, will transition to a new role centred on “accessibility and engagement.” The company is also scrapping its requirement for managers to source candidates from underrepresented groups and discontinuing initiatives to hire minority-owned vendors and suppliers.

“We’re committed to building exceptional teams by attracting the most talented individuals,” Gale explained. “That means considering diverse candidate pools without basing hiring decisions on protected characteristics such as race or gender.” Instead, the company plans to adopt programs that prioritise unbiased and equitable practices for all employees, regardless of background.

A Broader Strategic Repositioning

Meta’s decision to dismantle DEI programs coincides with other controversial shifts at the company that some interpret as aligning with right-leaning ideologies. Earlier this week, Meta announced the end of its third-party fact-checking operations in the U.S. and changes to its policies on hateful content, enabling users to post previously restricted material.

The timing of these moves raised eyebrows as Meta CEO Mark Zuckerberg recently met with President-elect Donald Trump at Mar-a-Lago. While Meta declined to comment on the meeting, Zuckerberg elaborated on his evolving perspective during an appearance on The Joe Rogan Experience.

Zuckerberg reflected on Meta’s trajectory, explaining how his views on free speech have transformed over the past decade. “The essence of social media is empowering people to share what they want,” he stated. “Our mission has always been to connect the world through open expression.”

However, he admitted that external pressures—ranging from the fallout of Donald Trump’s 2016 election victory to demands from the Biden administration during the pandemic—have shaped Meta’s policies.

“In the aftermath of 2016, I think we gave too much weight to voices in the media claiming misinformation was the only reason Trump won,” Zuckerberg said. “That perspective led us down a path where content moderation eroded trust in the platform.”

He also alleged that Meta faced intense pressure from the Biden administration to suppress content it deemed as misinformation during the pandemic, including memes questioning vaccine safety.

Navigating A Shifting Landscape

Meta’s move to step away from DEI reflects a broader cultural reckoning within corporate America, as companies grapple with polarising views on diversity and free speech. Whether this approach will help rebuild trust in the platform or spark further criticism remains to be seen. For now, Meta appears determined to redefine its role in shaping workplace culture and the digital public square.

Diversity, equity, and inclusion (DEI) initiatives, once seen as a cornerstone of workplace transformation, are now facing mounting resistance in boardrooms, state legislatures, and college campuses across the United States. Once lauded for their role in fostering inclusivity and fairness, these programs have become a battleground for ideological and political conflicts.

Since 2023, 81 anti-DEI bills targeting higher education programs have been introduced across 28 states and in Congress, according to the Chronicle of Higher Education. Eight of these have been signed into law in states such as Texas and Florida.

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A 2023 Pew Research Center survey revealed that over half of employed U.S. adults (52%) reported participating in DEI training or meetings at work, with 33% noting the presence of dedicated DEI staff. However, a growing number of companies are dismantling DEI-focused teams, scaling back efforts, and questioning the necessity of such programs.

Prominent figures like billionaire investors Bill Ackman and Elon Musk have publicly criticised DEI, calling it discriminatory. Musk went as far as labelling DEI “another word for racism,” asserting it unfairly prioritises certain groups over others. Tesla, owned by Musk, recently removed all mentions of minority-focused initiatives from its regulatory filings.

What Is DEI, And Why Was It Introduced?

DEI encompasses three key pillars:

• Diversity refers to embracing differences in race, gender, age, religion, sexual orientation, and other identities.
• Equity focuses on fair treatment and equal opportunities.
• Inclusion seeks to create environments where individuals feel valued and empowered to contribute their unique perspectives.

Daniel Oppong, founder of The Courage Collective, explains that DEI programs emerged to address systemic inequalities, particularly in workplaces where marginalised communities often lacked opportunities. “These initiatives aim to create environments where everyone has the chance to thrive,” he said.

A Brief History Of DEI

The roots of DEI can be traced to the Civil Rights Movement and landmark legislation like the Civil Rights Act of 1964, which outlawed workplace discrimination. Over time, these efforts evolved into structured DEI programs.

Yet, the momentum behind DEI has ebbed and flowed. In the 1980s, corporate deregulation led to a decline in diversity initiatives, but the murder of George Floyd in 2020 reignited calls for action. Between 2019 and 2022, LinkedIn data shows the number of Chief Diversity Officer roles skyrocketed by nearly 169%.

However, sustaining these initiatives has proven challenging. Many companies implemented DEI in a “piecemeal” fashion without adequate resources or commitment, leading to burnout among DEI professionals. Dominique Hollins, founder of the consulting firm WĒ360, notes that some businesses prioritised appearances over meaningful change. “It gave the illusion of commitment without the groundwork to sustain it,” she said.

A Shifting Corporate Landscape

Today, even as DEI supporters highlight its importance, many organisations are retreating from these commitments. High-profile layoffs in DEI teams at tech giants and other firms underscore the waning enthusiasm. The post-pandemic economic climate, coupled with political scrutiny, has placed DEI under the microscope.

This rollback doesn’t sit well with all leaders. Billionaire businessman Mark Cuban has defended DEI, arguing that diverse teams are not just ethical but also critical for business success. “The loss of DEI-phobic companies is my gain,” Cuban said.

Higher Education: The New Frontline

Colleges have become a focal point in the DEI debate, with state lawmakers pushing to restrict or eliminate DEI initiatives. For instance, the University of Florida recently disbanded its Chief Diversity Office to comply with state regulations. Critics argue these moves could leave students unprepared for an increasingly diverse workforce.

Ella Washington, a professor at Georgetown University, emphasises the importance of diversity in education: “Colleges are microcosms of the world. Fostering equity and inclusion on campuses teaches the next generation how to lead in a global society.”

What’s Next For DEI?

As DEI programs face growing opposition, questions remain about their future. While some see these initiatives as critical for fostering innovation and inclusivity, critics frame them as politically motivated and divisive.

Despite the growing opposition, workplace support for DEI remains strong. According to a 2024 Ipsos poll, 67% of respondents reported working in organisations that provide DEI training or resources, with 71% affirming that such initiatives are essential for fostering a positive workplace culture.

The road ahead for DEI will likely be turbulent, with companies and institutions forced to balance competing pressures. As Dominique Hollins puts it, “The challenge isn’t whether DEI is needed—it’s whether we’re willing to commit to real, sustainable change.”

Spain’s decision to introduce a 100% property tax on purchases by non-EU residents, announced on 15th January, is poised to alter the dynamics of the real estate investment landscape in Europe. While the move aims to address Spain’s mounting housing crisis, it could inadvertently divert foreign investors to other markets, including Cyprus.

Tackling Spain’s Housing Crisis

The tax, a bold initiative by Spanish Prime Minister Pedro Sánchez, is intended to curb soaring property prices and ensure affordability for locals. Spain has faced a significant shortage of housing, worsened by high inflation, rising interest rates, and insufficient new construction. In 2023 alone, non-EU residents purchased 27,000 properties in Spain, with many acquisitions driven by profit motives rather than personal use, Sánchez noted.

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The lack of available housing has sparked frustration among the local population as demand continues to outstrip supply, further driving up prices. This new tax is part of a broader strategy to prioritize housing for residents and stabilize the market.

The Cyprus Perspective

As Spain tightens its regulations, some investors may look elsewhere, and Cyprus could emerge as an attractive alternative. Pavlos Loizou, CEO of the analytics firm Ask Wire, suggests that while changes in Spain might present opportunities for Cyprus, the overall impact is likely to be limited.

The Cypriot rental market has already seen significant investment, and the entry of new players may not drastically shift the status quo. Moreover, Loizou highlighted that Greece has also introduced tighter regulations, including restrictions on short-term rental licenses and a sustainability tax for platforms like Airbnb, which could steer investors towards more lenient markets like Cyprus.

In Cyprus, short-term rentals remain relatively unregulated. Although the government has established a rental property registry, less than 40% of properties are formalized, leaving room for investors to operate with fewer restrictions.

Broader Implications For The Region

UK analysts suggest that Spain’s tax reforms may deter non-EU investors, prompting them to seek out markets with more favorable conditions. Cyprus and Greece, along with larger markets like Turkey and Italy, are well-positioned to benefit. However, experts caution that regional competition could limit significant growth in demand for Cypriot properties.

An Evolving Landscape

While the new Spanish tax has raised concerns among foreign investors, Cyprus may attract those seeking less restrictive property markets. However, sustained demand will depend on the government’s ability to strike a balance between regulation and investment incentives. In the meantime, Cyprus remains a promising, albeit competitive, alternative for property investors navigating Europe’s shifting real estate landscape.

Interest rates in Cyprus experienced a general decline in November 2024, mirroring recent rate reductions by the European Central Bank (ECB), according to data from the Central Bank of Cyprus (CBC). However, disparities persist among local financial institutions, with Cyprus continuing to report borrowing rates above and deposit rates below the Eurozone average.

Mortgage Lending: Small Gains For Borrowers

In the mortgage market, the average variable interest rate for home purchases in Cyprus edged down to 4.50% in November from 4.62% in October. Comparatively, the Eurozone average fell to 4.27% from 4.37%. Rates for new variable loans varied widely among Cypriot banks. The Bank of Cyprus recorded the highest rate at 5.20%, followed by Astrobank at 4.85% and Eurobank Cyprus at 4.54%. On the lower end, the Housing Finance Corporation offered 3.53%, and Ancoria Bank provided 3.78%. For renegotiated loans, rates were notably divergent, with the Bank of Cyprus at 5.48% and Eurobank Cyprus offering a significantly lower rate of 2.35%.

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Corporate Loans: Mixed Trends Across Loan Sizes

For corporate loans under €1 million, average rates fell to 5.01% in November from 5.45% in October, while the Eurozone average dipped to 4.74%. Among Cypriot banks, Banque SBA led with the highest rate at 7.54%, while Hellenic Bank and Ancoria Bank offered the lowest rates at 4.55% and 4.35%, respectively. In renegotiations, Hellenic Bank stood out with a rate of 3.42%, the lowest in this category.

Conversely, loans above €1 million saw an increase in rates. The average rate in Cyprus rose to 4.97% from 4.72%, diverging from the Eurozone, where rates decreased to 4.38%. Banque SBA recorded the highest rate at 7.52%, with Hellenic Bank at 6.55%. Lower rates were observed at the Bank of Cyprus (5.07%) and Societe Generale Bank Cyprus (5.15%). For renegotiated large loans, Hellenic Bank offered the lowest rate at 3.29%, down from 4.40% in October.

Deposit Rates: A Steady Decline

Household deposit rates for term deposits up to one year dropped to 1.70% in November, down from 1.76% in October and 1.98% in September. The Eurozone average also fell, landing at 2.61% from 2.74%. Arab Jordan Investment Bank provided the highest household deposit rate at 3%, while the Bank of Cyprus and Hellenic Bank offered the lowest at 0.72% and 1.50%, respectively.

Corporate deposit rates saw a similar downward trend, with one-year term deposits averaging 1.99% in November, down from 2.19% in October. The Eurozone average remained higher at 2.90%. Astrobank led with the highest rate at 2.92%, followed by the National Bank of Greece at 2.54%. Meanwhile, the Housing Finance Corporation reported the lowest rate at 0.22%, alongside the Cyprus Development Bank, which offered 1.59%.

While the ECB’s monetary policy adjustments continue to influence Cyprus’ interest rates, the disparity between local and Eurozone averages highlights ongoing structural challenges. Borrowers and savers alike will need to navigate the

Cyprus is poised to sustain strong economic growth in the coming years, according to a recent report from the Canadian rating agency Morningstar DBRS. The agency also predicts a steady decline in unemployment, which is expected to bolster the nation’s fiscal performance.

Despite these positive projections, the report highlights persistent hurdles facing the Cypriot economy. As a small, service-driven market, Cyprus remains highly susceptible to external shocks. Additionally, while strides have been made to reduce non-performing loans (NPLs), their levels still exceed the Eurozone average. Challenges in labour market productivity further restrict the nation’s economic potential.

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On a brighter note, progress in addressing NPLs has been significant. Data from the Central Bank of Cyprus show that NPL ratios in approved credit institutions dropped to 6.8% in August 2024, a dramatic reduction from 43.7% at the end of 2017. This improvement represents an €18.9 billion decrease in absolute terms.

Morningstar DBRS anticipates this downward trajectory to persist but acknowledges that eliminating the remaining NPLs will require time. By mid-2024, credit acquisition companies managed exposures of approximately €21 billion, with 94% classified as non-performing.

The report also notes delays faced by KEDIPES, the state-owned asset management company. Challenges such as foreclosure moratoriums, the COVID-19 pandemic, and geopolitical tensions have pushed the company’s operational deadline to 2030.

Housing prices, meanwhile, have shown sustained growth. As of Q2 2024, property prices in Cyprus rose by an annual rate of 8.0%, with house prices increasing by 6.2% and apartment prices surging by 12.0%. Most of the real estate collateral tied to NPLs consists of residential properties, with Nicosia and Limassol identified as the most stable markets on the island.

While structural vulnerabilities persist, Morningstar DBRS’s analysis underscores Cyprus’ resilience and ability to adapt. Continued efforts to address NPLs, coupled with a robust housing market and improved employment metrics, suggest the nation is on a steady path toward economic stability and growth.

At the Future Minerals Forum in Riyadh, Saudi Arabia unveiled an ambitious $100 billion investment aimed at transforming the global mining industry. The kingdom is positioning itself as a key player in the supply of critical minerals essential for energy transition technologies, including lithium, copper, gold, and rare earth elements. This strategic push is part of Saudi Arabia’s broader plan to diversify its economy and reduce dependence on oil.

Khalid al-Mudaifer, Deputy Minister of Mining Affairs, revealed that $20 billion of the planned investment is already advancing through its final engineering phase or is under construction. While details on the full scope of the project remain limited, the focus is on boosting exploration for key minerals such as lithium, copper, zinc, and nickel.

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Earlier in 2024, the Ministry of Industry and Mineral Resources updated its estimate of the value of untapped mineral resources, increasing the figure from $1.3 trillion to $2.5 trillion. This upward revision is largely driven by recent discoveries of these critical resources. In conjunction with this, the Saudi government launched a $182 million incentive program to further encourage mineral exploration and development.

Strategic Partnerships And New Discoveries

Saudi oil giant Aramco has partnered with state-owned mining company Ma’aden to jointly explore and extract minerals essential for the energy transition. Aramco’s collaboration extends to lithium exploration, with the company identifying promising lithium concentrations in its operating regions.

Energy Minister Prince Abdulaziz bin Salman highlighted that Aramco’s involvement in mining, particularly lithium extraction, marks a departure from previous assumptions about the company’s focus. “Aramco can be a diversified company, and its mandate has no limits,” said bin Salman, underscoring the kingdom’s forward-thinking approach.

A key player in this strategy is Manara, a joint venture between Ma’aden and the Public Investment Fund (PIF), designed to invest in mining assets globally and strengthen sustainable supply chains. The venture aims to diversify Saudi Arabia’s mining operations and ensure access to the resources necessary for a successful energy transition.

Ambitious Timeline And Market Impact

The kingdom anticipates lithium production could commence as soon as 2027, with collaborations expected to accelerate the process. Lithium, a crucial component for electric vehicle batteries, is in high demand, and Saudi Arabia aims to become a central hub for processing critical minerals, competing with China, which currently dominates two-thirds of the lithium processing market. 

In a breakthrough, Saudi Arabia recently confirmed the successful extraction of lithium from brine samples in Aramco’s oil fields. A joint venture with Ma’aden and local lithium extraction startup, Lithium Infinity, is now working on launching a commercial pilot program for direct extraction.

This bold move signals Saudi Arabia’s determination to play a pivotal role in the future of global mining, tapping into resources that will fuel both its economy and the world’s transition to cleaner energy technologies.

Nuclear power is set to reach unprecedented levels in 2025, expected to contribute nearly 10% of the world’s electricity. As the global energy map shifts, China is poised to take center stage in the nuclear sector, surpassing traditional leaders like the United States and France, according to a recent report from the International Energy Agency (IEA).

Key Highlights

The global nuclear landscape is undergoing a dramatic transformation, with over 70 gigawatts of new nuclear capacity under construction – one of the highest volumes in three decades. The IEA’s report, “The Road to a New Era for Nuclear Energy,” reveals that nuclear electricity production reached 2,742 terawatt hours (TWh) in 2023, and is set to climb to 2,900 TWh in 2025. This surge is largely driven by the electrification of industries, air conditioning needs, and the rapid rise of electric vehicles and data centers powering artificial intelligence.

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As of 2023, more than 410 nuclear reactors were operational across 30+ countries, marking a significant shift in energy generation on a global scale.

A New Nuclear Era

“We are entering a new era for nuclear energy,” says IEA Executive Director Fatih Birol, noting that by 2025, nuclear power generation will hit its highest level in history. This recovery marks a sharp contrast to the aftermath of the 2011 Fukushima disaster, which led to a sharp decline in nuclear energy investment. The rebound is being led by China, which has started 25 of the 52 nuclear reactor projects globally since 2017.

In contrast, nations like the US and France have seen a slowdown in nuclear development, primarily due to the sky-high costs associated with plant construction. As Birol points out, “The global geography of nuclear power is shifting,” with China set to surpass both the US and Europe in nuclear energy production within five years.

Europe And The US Struggling To Keep Up

Historically, the US and Europe have been nuclear powerhouses. However, nuclear energy’s share of electricity production has dropped significantly in these regions. In Europe, nuclear’s contribution has fallen from 35% in the 1990s to under 25% today, and the IEA predicts it could drop below 15% in the next decade. The US faces a similar decline. The slow pace of nuclear project completion and skyrocketing costs, now 2.5 times the initial projections, have hampered efforts to keep up with China’s rapid expansion.

Concentration Of Power

Another significant challenge facing the nuclear sector is the concentration of supply chains. Over 99% of the global uranium enrichment capacity is controlled by just four players: China National Nuclear Corporation (CNNC), Russia’s Rosatom, the Urenco consortium, and France’s Orano. This consolidation of power, especially Russia’s control of 40% of the market, raises concerns about the geopolitical risks surrounding nuclear energy.

The Rise Of Small Modular Reactors

Despite these hurdles, the nuclear industry is adapting. One promising development is the rise of small modular reactors (SMRs). These compact, versatile units are gaining traction worldwide – from China to Europe, the US, and Canada. Birol forecasts that within 15 years, the cost of SMRs will be competitive with large-scale wind and hydro projects. These smaller reactors are especially appealing to tech companies and industries reliant on uninterrupted, 24/7 electricity, such as those powering AI and data centers.

Looking Ahead

The IEA outlines three potential scenarios for the future, each predicting significant growth in nuclear capacity. By 2050, global nuclear power could increase by more than 50%, reaching nearly 650 gigawatts (GW), or even double with the right government support.

Since 1971, nuclear energy has prevented the release of 72 gigatonnes of CO2 emissions, underscoring its role in reducing reliance on fossil fuels. While the lion’s share of progress toward net-zero emissions will come from renewables like solar, wind, hydro, and geothermal energy, Birol stresses that nuclear energy will be a key component of a balanced, sustainable energy strategy.