In 2024, the U.S. trade deficit skyrocketed, driven by a surge in imports, while export growth remained sluggish amidst a strong dollar and shifting global dynamics.

Unprecedented Deficit Numbers

The U.S. trade deficit soared to a historic $1.2 trillion in 2024, marking a dramatic increase compared to previous years. American consumers, emboldened by a robust economy, ramped up purchases of foreign goods, while exports saw more modest growth.

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Imports of goods and services jumped by 6.6% to an all-time high of $4.1 trillion. Consumers were particularly drawn to auto parts, weight-loss medications, computers, and various food products from overseas. On the flip side, despite setting a new record at $3.2 trillion, U.S. exports faced headwinds due to a strong dollar, making American goods more expensive for foreign buyers. The decline in exports of industrial supplies, such as cars, machinery, and raw materials, was particularly notable.

The Strong Dollar’s Role

The strong dollar has played a pivotal role in the trade imbalance. While it made imports cheaper for U.S. consumers, it raised prices for foreign buyers purchasing American products. As a result, U.S. car exports, especially in the face of fierce competition from China’s rapidly advancing electric vehicle market, were hit hard.

The Shifting Auto Industry

Chinese automakers, particularly in the EV space, have made impressive gains both in China and globally. According to Mark Zandi, chief economist at Moody’s Analytics, this shift is increasingly pressuring U.S. automakers, such as General Motors, which are struggling to maintain their market share in China. As a result, U.S. car exports plummeted by $10.8 billion in 2024.

Regional Trade Imbalances

The U.S. continued to see the largest trade deficit with China, reaching $295.4 billion. Meanwhile, the U.S. also faced significant trade imbalances with the European Union, Mexico, and Vietnam. However, Mexico surpassed China for the second consecutive year as the largest source of U.S. imports, with a record $505.9 billion in goods crossing the border.

Oil Exports and Shifting Patterns

On a more positive note, oil exports surged, contributing to a petroleum surplus of $44.9 billion. This helped partially offset the broader deficit, but the overall picture remains skewed by continued reliance on foreign goods.

In the coming months, the trade landscape is likely to shift further, especially as President Trump continues to push for tariffs aimed at curbing trade imbalances. His administration has already signed executive orders targeting imports from China, Canada, and Mexico, which could disrupt global trade flows even more.

The Research and Innovation Foundation (RIF) has announced its main funding calls for 2025, with a total budget exceeding €45.3 million. The funding aims to strengthen Cyprus’ research and innovation ecosystem through targeted programs supporting business innovation, knowledge transfer, and international collaboration.

For the first time, RIF will provide funding for establishing production lines for innovative products and developing AI-driven solutions to address public sector challenges. Additionally, the Fast-Track Innovation program will accelerate the commercialization of new products and services.

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Funding Priorities

The 2025 funding programs align with RIF’s five strategic pillars:

• Research
• Knowledge Transfer and Collaboration
• Innovation
• Internationalization
• Infrastructure and Capabilities

Planned Calls by Quarter

Q1 2025

• Innovate
• Seed
• Innovation Support Structures
• New Product Development – Capacity Building
• STEP – Setting up facilities and production lines for manufacturing innovative products/services
• Fast-Track Innovation
• European Partnership – EUROSTARS
• Vision ERC
• Horizon Europe – 2nd Opportunity – MSCA
• AI in the Public Sector
• R&I Internships
• Events Sponsorships

Q2 2025

• Research in Enterprises (ENTERPRISES)
• Proof of Concept
• Excellence Hubs (EXCELLENCE)
• Post-Doc Fellowships
• Cybersecurity Capability Enhancement

Q4 2025

• BRIDGE2HORIZON

Further details on funding eligibility, proposal submissions, and deadlines are available on the RIF website.

In 2024, the UAE’s foreign trade reached a historic $820 billion (AED 3 trillion), marking a significant achievement for the nation. This milestone was driven by a rise in international trade agreements, with Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, highlighting the pivotal role these partnerships played in the country’s economic growth.

Strong Trade Growth

The UAE’s foreign trade saw a robust 14.6% year-on-year growth in 2024, a stark contrast to global trade growth of just 2%. Sheikh Mohammed credited the nation’s ongoing efforts to strengthen economic ties globally, with a particular emphasis on the role of UAE President Sheikh Mohammed bin Zayed Al Nahyan, who has worked tirelessly to cultivate stronger international relationships.

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The Impact Of CEPAs

A key contributor to the UAE’s foreign trade success is the implementation of Comprehensive Economic Partnership Agreements (CEPAs). These agreements, spearheaded by Sheikh Mohammed bin Zayed, added an impressive $36.8 billion (AED 135 billion) to the UAE’s non-oil trade in 2024, marking a 42% increase from the previous year. These agreements are helping to cement the UAE’s position as a global trade hub.

Achieving Ambitious Goals Early

In 2021, the UAE set an ambitious target of reaching $1.1 trillion (AED 4 trillion) in foreign trade by 2031. By the end of 2024, the country had already achieved 75% of this goal, putting it on track to surpass this target well ahead of schedule. This rapid progress reflects the UAE’s strong economic vision and strategic focus on progress over politics.

Exports Surge

The UAE’s exports also saw a significant jump in 2024, rising 32% between January and October compared to the same period in 2023. This performance highlights the strength of the country’s industrial strategy and its growing global market access.

Outlook for 2025

The UAE’s economic outlook remains strong, with the International Monetary Fund (IMF) forecasting 4% growth in 2025, driven by non-oil sectors such as tourism, construction, and financial services.

In conclusion, the UAE’s record-breaking trade figures are a testament to its effective economic strategies and its growing influence in global markets.

The much-anticipated merger between Honda and Nissan, once seen as a potential game-changer for the automotive industry, now faces serious challenges. What seemed like a promising partnership in December 2024 has quickly turned into a high-stakes negotiation, with tensions rising as both companies struggle to align their visions for the future.

Key Essentials:

• Proposal Rejected: Honda proposed making Nissan a subsidiary as part of a restructuring strategy, but Nissan strongly opposed this idea, fearing a loss of control.
• Talks Stalled: After weeks of back-and-forth, the talks have stalled, with both parties finding it difficult to meet the expectations of their shareholders.
• Honda’s Frustration: Honda, frustrated with the slow pace, has warned that if no agreement is reached soon, the talks may collapse.
• Mitsubishi’s Uncertain Role: Mitsubishi Motors, Nissan’s largest shareholder, has decided to hold off on joining the discussions until Honda and Nissan find a resolution.

Tension Over Control

In late 2024, Honda and Nissan initiated discussions on a potential merger to strengthen their positions in the automotive market. Honda saw the merger as an opportunity to reshape Nissan, proposing that the company become a subsidiary to facilitate rapid restructuring. However, Nissan, wary of losing control, rejected this suggestion, leading to a growing divide between the two companies.

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As of February 4, a Nissan executive noted that the likelihood of reaching an agreement was slim: “It is almost impossible to meet the conditions acceptable to both sides’ shareholders. It no longer seems possible to merge.” Honda, frustrated by Nissan’s hesitance, has warned that if its proposal is rejected, the talks will come to an end.

Struggling With Restructuring

Nissan has been in a state of flux for several years, and its performance has continued to deteriorate. In November 2024, the company announced job cuts and a significant reduction in global production. Honda, however, sees these moves as insufficient and has pushed for a more aggressive restructuring. But Nissan’s reluctance to accept Honda’s terms has made the talks increasingly tense.

Is The Merger Still Possible?

With both companies at a crossroads, the possibility of a successful merger appears uncertain. Honda’s push for control clashes with Nissan’s desire for independence, and both companies seem to be at an impasse. As the deadline for talks approaches, the automotive world is watching closely to see if they can overcome their differences—or if the merger will ultimately fall apart.

Shares of Alphabet, Google’s parent company, plunged in after-hours trading on Tuesday after the tech giant’s Q4 earnings report revealed weaker-than-expected cloud revenue and a significantly higher spending outlook for 2025.

Key Figures

• Alphabet’s stock fell 7% to $193 by 4:35 p.m. EST, wiping out nearly $180 billion in market value.
• The company beat EPS estimates with $2.15 per share, slightly above Wall Street’s $2.12 forecast.
• However, revenue came in at $96.5 billion, narrowly missing expectations of $96.7 billion.
• Google Cloud, a major AI-driven growth area, generated $11.96 billion in revenue—below the projected $12.19 billion.
• Alphabet forecasted $75 billion in capital expenditures for 2025, far exceeding analysts’ $58.8 billion estimate.
• Earlier in the day, Alphabet’s stock hit a record high of $207.71 before tumbling post-earnings.

Advertising Remains A Powerhouse

Alphabet’s core ad business continues to thrive, bringing in $72.46 billion in Q4—easily surpassing forecasts of $71.66 billion and shattering Q3 2024’s $65.85 billion record.

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The Bigger Picture

Despite its dominance in digital advertising—where 75% of its revenue originates—Alphabet is pushing hard into AI with its Gemini chatbot. However, like Meta, it’s committing to aggressive spending in 2025, a move that investors are scrutinizing amid uncertain returns.

With cloud growth slowing and capital expenditures rising, Alphabet’s ability to balance AI ambitions with profitability will be key to its stock’s performance in the months ahead.

Global gold demand soared to an all-time high in 2024, driven by aggressive central bank purchases and a surge in investment interest, according to the World Gold Council’s annual report.

Key Figures

• Nearly 5,000 tonnes of gold were traded last year, surpassing the 4,899 tonnes recorded in 2023, including over-the-counter (OTC) investments.
• Central banks continued their buying spree, surpassing 1,000 tonnes of purchases for the third consecutive year.
• The National Bank of Poland emerged as the top buyer, adding 90 tonnes to its reserves, followed by Turkey (75 tonnes) and India, which made steady purchases throughout the year.

What’s Next?

Gold prices shattered 40 all-time highs last year and continue to rise in 2025. Futures on the New York Mercantile Exchange (NYMEX) climbed to $2,875.8 per ounce this week, according to FactSet.

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With rate cuts expected, the opportunity cost of holding gold is likely to decrease, keeping investment demand stable.

Investment Surge

• Total gold investment jumped 25% to a four-year high of 1,180 tonnes, primarily fueled by ETFs.
• Demand for gold bars and coins remained steady, with robust purchases in China and India.
• India’s gold demand spiked following a government reduction in import duties from 15% to 6% in July.
• Across ASEAN nations, including Singapore, Indonesia, Malaysia, and Thailand, investment demand saw double-digit growth.
• Wealthy investors continued to hedge risks through OTC gold investments, which operate outside traditional exchanges.

Jewelry Market Struggles

Despite the bullish investment climate, gold jewelry demand fell 11% year-on-year, making it the only segment to decline. High gold prices and sluggish economic growth are expected to keep demand weak in 2025, according to analysts.

While central banks and investors drive record-breaking gold purchases, consumer markets remain under pressure, setting the stage for another year of market shifts in 2025.

The Kuwaiti Ambassador to Cyprus, Abdullah Musaed Al-Khorafi, has underscored the vital need to deepen dialogue between Kuwait, Cyprus, and the Gulf Cooperation Council (GCC) nations, as well as the broader Arab world. He made these remarks during a luncheon held at his Nicosia residence on February 4, which brought together key diplomatic figures.

The event was hosted in honor of Annita Demetriou, President of the House of Representatives of Cyprus, and was part of a series of high-level diplomatic gatherings organized by the Kuwaiti Embassy in Cyprus. Among the attendees were the ambassadors and heads of Arab diplomatic missions in Cyprus, as well as representatives from the U.S. and Swiss embassies.

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Ambassador Al-Khorafi took the opportunity to lead an expanded discussion on pressing regional and international developments, focusing particularly on the Middle East. Topics included the ongoing crises in Syria, Lebanon, and Palestine, with a strong emphasis on how these events affect regional stability.

The luncheon also served as a platform for talks on enhancing cooperation between Cyprus and GCC countries, as well as broader Arab nations. The discussions highlighted opportunities to strengthen ties in key sectors such as education, culture, trade, investment, and tourism. The aim is to build closer connections between people and foster mutual benefits.

In his opening speech, Ambassador Al-Khorafi stressed the importance of promoting dialogue at both governmental and societal levels, not only between Kuwait and Cyprus, but across the entire GCC and Arab world. He expressed his gratitude for the presence of President Demetriou, noting that her participation symbolized Cyprus’ commitment to advancing relations with Kuwait and its regional partners.

President Demetriou, in turn, thanked the ambassador for his hospitality, reflecting on the fruitful discussions and shared goals for enhancing Cyprus’ relations with Kuwait and the wider Arab world. She reaffirmed the importance of cooperation and strategic partnerships between Cyprus and the GCC countries, especially in areas of mutual interest and concern.

This meeting, according to Demetriou, was a testament to the strong diplomatic relations between Cyprus and Kuwait, as well as the ongoing efforts to broaden and deepen ties with the Arab world.

The energy exploration licenses for blocks 2, 3, and 9 within Cyprus’ Exclusive Economic Zone (EEZ) have officially expired and will not be renewed, following disappointing results from recent surveys, confirmed George Papanastasiou, Minister of Energy, Trade, and Industry.

This move signals the exit of South Korea’s state-owned Kogas, which held a 20% stake in these blocks. Following the expiry of the licenses, Italy’s Eni—leading the exploration consortium—retains rights to four blocks (6, 7, 8, and 11) in the Cypriot EEZ, in partnership with France’s Total. This is a reduction from the seven blocks they previously held.

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Addressing questions regarding a report by the energy website MEES, which suggested the return of rights to these blocks by the end of January, Papanastasiou confirmed the licenses had expired. The exploration, he noted, revealed no promising natural gas prospects, prompting the decision not to renew.

The Minister called the expiry of the licenses a “natural development,” emphasizing that not every block within Cyprus’ EEZ is expected to contain viable resources.

The exploration rights for blocks 2, 3, and 9 were initially awarded in January 2013 to a consortium including Eni Cyprus and Kogas Cyprus. Total later joined the group. Despite extensive seismic surveys and deep exploratory drilling—reaching depths of 5,800 meters at Amathusa-1 and 5,485 meters at Onasagoras-1—no commercially viable gas was discovered. In Block 3, exploration was disrupted by interference from the Turkish Navy in 2018.

European AI startups have attracted a staggering $8 billion in venture capital funding in 2024, according to the newly released French AI Report. The findings come just days ahead of the Artificial Intelligence Action Summit, set to take place in France.

Key Insights

The report, compiled by Galion.exe, Revaia, and Chausson Partners, highlights a surge in AI investment across Europe. AI startups now account for roughly 20% of all venture capital funding in the region this year—a clear sign of rapid growth in the sector.

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In total, these startups have secured around $8 billion in funding, with 7% of that coming from Series B rounds. Notably, U.S. venture capital is playing a crucial role, contributing one-fifth of early-stage investment and a staggering 50% of later-stage funding.

Investor Sentiment

“American investors are making significant inroads into European AI companies, particularly in the later stages of funding,” the report states, underscoring the growing cross-Atlantic interest in Europe’s tech ecosystem.

The Bigger Picture

However, this influx of U.S. capital also raises concerns. As trade tensions between Europe and the U.S. persist, the heavy reliance on American funding could become a vulnerability. Potential tariff hikes on U.S. imports and Europe’s impending AI regulations—designed to rein in Big Tech—may provoke a response from Washington. With dominant players like Google, Amazon, and Meta headquartered in the U.S., stricter European policies could escalate economic friction.

What’s Next?

Europe is actively working to strengthen its foothold in emerging technologies. The European Commission has unveiled its Competitiveness Compass, a strategic roadmap designed to transform Europe into a global leader in AI, advanced materials, quantum computing, biotechnology, robotics, and space technology.

Key initiatives include the development of “AI Gigafactories” and large-scale “AI Deployment” projects to accelerate industrial adoption. Additionally, a dedicated EU strategy for startups and scale-ups aims to remove barriers that hinder growth, ensuring Europe remains a major player in the AI revolution.

Inflation in Cyprus has remained stubbornly at 3% for the second month in a row, showing little sign of easing—even as government policies, including a zero VAT rate on select goods until the end of 2025, aim to curb rising costs.

The latest data from Eurostat, released on Monday, caught many by surprise. The harmonized inflation rate for January stood at 3% year-on-year, a notable jump from 2.1% in January 2024 but still a far cry from the staggering 6.8% recorded in January 2023.

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Across the Eurozone, inflation edged up slightly, reaching 2.5% in January from 2.4% in December. Cyprus is among eight countries where inflation remains between 3% and 5%, alongside Croatia (5%), Belgium (4.4%), Slovakia (4.1%), Austria (3.5%), Lithuania (3.4%), Greece (3.1%), and Latvia (3%).

Several other European nations also reported inflation above the 2% mark, including Slovenia (2.3%), Luxembourg (2.4%), Portugal (2.7%), Germany and Estonia (2.8%), and Spain and the Netherlands (2.9%). Meanwhile, the lowest inflation rates were observed in Ireland (1.5%), Finland (1.6%), Italy and Malta (1.7%), and France (1.8%).

Breaking down the inflationary pressures, energy prices in the Eurozone climbed 1.8% compared to a modest 0.1% rise in December. Food inflation, however, showed a slight cooldown, with the food, alcohol, and tobacco index rising 2.3%, down from 2.6% previously. Meanwhile, service sector inflation eased marginally to 3.9% from 4%.

Despite government intervention, inflation in Cyprus appears to be holding firm, raising concerns over the effectiveness of current measures in bringing prices under control.