US Economy Showed Solid Growth at End of 2022

The U.S. economy cooled only slightly at the end of last year, advancing at an annualized 2.9% rate, the Department of Commerce reported Thursday, even as forecasters are suggesting a recession is possible later in 2023.

The growth in the October-to-December quarter dropped from a 3.2% advance in the third quarter, following a half year when the world’s biggest economy shrank.

For all of 2022, the economy grew by a solid, if unspectacular 2.1%, down from a robust 5.7% growth rate in 2021 when the recovery from the coronavirus pandemic was in full force.

Last year saw contrasting themes, including the fastest growth in consumer prices in four decades, pinching the wallets of Americans at all income levels.

Yet the lowest unemployment rate in 50 years was recorded, with hundreds of thousands of new jobs being added to payrolls every month. Separately, borrowing costs for businesses and consumer loans and home mortgages rose sharply as the country’s central bank, the Federal Reserve, increased its benchmark interest rate seven times, an effort aimed at slowing economic growth and curbing inflation.

By the end of the year and into January, there were signs the economy was slowing, with some forecasters predicting a recession — meaning two straight quarters of economic decline in the coming months.

With higher interest rates, home buying and retail sales have dropped, while manufacturing output fell in November and December. The hiring of temporary workers is weakening, and major companies, especially in technology and media, are laying off thousands of workers. 

While the inflation rate in consumer prices has dropped, it remains high by historical standards — now at a 6.5% annualized rate, well above the 2% rate sought by Federal Reserve policymakers. It is likely to stay high through much of 2023.

The Fed is also planning more interest rate increases, albeit not likely as big as the ones it imposed in 2022. It is another factor that could curtail U.S. economic growth.

The White House and the new Republican majority in the House of Representatives are facing contentious negotiations over increasing the limit on the national debt, now at $31.4 trillion. The U.S. could reach the spending limit by early June.

If an agreement is not reached, the ensuing turmoil would roil world financial markets and the U.S. government’s credit rating could be cut, as occurred in 2011, the last time Congress and the White House quarreled significantly over increasing the debt limit. 

With New Deep Sea Port, Nigeria’s Focus Turns to Better Road, Rail Connections 

Nigerian authorities have hailed the launch of a deepwater seaport in Lagos they say will create 300,000 jobs and reduce shipping bottlenecks. While the new port is expected to reduce losses due to congestion, shipping industry experts say Nigeria’s poor roads and rail connections to ports also must be improved.

The launch by President Mohammadu Buhari during his two-day visit this week to Lagos signaled his government’s effort to grow Nigeria’s economy through infrastructural development.

The 1.5-billion-dollar, Chinese-built Lekki Deep Sea Port sits on 90 hectares of land in the Lagos Free Trade Zone — the biggest port by size in West Africa.

Authorities say ships docking at the port could be up to four times the size of vessels at the state’s Tin Can and Apapa ports. They expect it will ease delays and congestion at ports and increase earnings by up to $360 billion in coming years.

Efioita Ephraim is a manager at Ports and Terminal Nigeria, Ltd.

“The current ports we have in the country are located along rivers, tributaries and that’s why there are limitations. It’s a welcome development to have an infrastructure like this in our country. With this, larger vessels will be able to berth at our ports and we shall be in competition with neighboring countries such as Cotonou [Benin],” said Ephraim.

Most of Nigeria’s seaports were built many decades ago and are either closed or operating below capacity.

Nigeria loses an estimated $1 billion a year to delays and bottlenecks at ports. To address the problem, the Nigerian Ports Authority launched an automated process for clearing cargo at ports.

Abiodun Gbadamosi is the former general manager of Nigeria’s western ports. He said the new deep sea port at Lagos will add to Nigeria’s economic progress and create jobs.

The country’s bureau of statistics says Nigeria’s unemployment rate is 33 percent.

“What Nigeria needs now are jobs, jobs and more jobs, and that’s going to go a very long way. It’s going to improve the commerce around that area. It’s highly commendable and it’s going to actually propel the state. Then Nigeria can now push forward the idea of being hub for the region,” he said.

Ephraim said authorities must improve road and rail accessibility to the area.

“If the items are to be conveyed out of the port and into the port by road, then I would expect the multimodal mode of transportation be encouraged to and from the Lekki deep sea port, rail water and road transportation.”

China is one of Nigeria’s biggest lenders and has been funding rail, road and power projects.

The first commercial vessel is expected to arrive in the port this Sunday.

US Presidents Facing Scrutiny on Documents

As former Vice President Mike Pence joined the club of top officials mishandling classified documents, U.S. presidents and vice presidents going all the way back to Jimmy Carter, the oldest living former commander in chief, must now respond to public scrutiny on whether they followed procedure in returning classified material upon leaving office.

Representatives of the 39th U.S. president, who served from 1977 to 1981, said he did.

“Though President Carter was not bound by the Presidential Records Act, which took effect after his presidency, he nevertheless voluntarily donated his documents and records to the National Archives after he left office and directed his team to work closely with the National Archives on their transfer,” a spokesperson said in an email response to VOA.

The Presidential Records Act of 1978 governs the official records of presidents and vice presidents after January 1981 and transfers the legal ownership of those records from private to public under the management of the National Archives and Records Administration.

The Carter Center did not deny reporting by The Associated Press that classified materials were found at the president’s home in Plains, Georgia, on at least one occasion and were returned to NARA.

“It could happen,” Matthew De Galan, Carter Center vice president of communications, told VOA. “If it happened, it’s a normal thing — you find a classified document, you turn it in.”

But no one currently working at the Carter Center or the Jimmy Carter Presidential Library and Museum remembers the president finding classified materials at his home, De Galan added.

Representatives of Bill Clinton, George W. Bush and Barack Obama responded similarly to VOA’s query, saying the presidents returned materials to NARA at the end of their terms and no additional searches are being conducted. Obama’s office points to NARA statements in September that refute media reports that boxes of presidential records were missing from the Obama administration when NARA moved them at the end of his term.

Widespread problem

Lawyers for Pence said a “small number” of classified documents were found at his home in Indiana last week. Meanwhile, former President Donald Trump and President Joe Biden are under separate special counsel investigations looking into their respective mishandling of classified documents.

Much is still unknown about how, when and why these materials were not appropriately handled. However, many former officials and experts say the problem is widespread.

“There are several million people at any given time who hold a security clearance and have access to classified information,” Mark Zaid, an attorney focusing on national security law, told VOA. “Individuals leave federal service and just mistakenly bring documents home that are classified, and they don’t even realize that for years.”

Classified documents may also get misplaced during a presidential transition, where there is a massive move of records, including the physical transfer of hundreds of millions of textual, electronic and audiovisual records and artifacts from the White House to an outgoing president’s future library.

Matthew Dowd, chief strategist for the Bush-Cheney 2004 presidential campaign, said in a tweet that it is likely every president and vice president in recent history “accidentally left with classified documents because of packing mess at transition times.”

Still, some lawmakers are livid.

“We have an epidemic of senior leaders taking classified [documents] home. And we have to say categorically, whether it’s Republican or Democrat, it’s all wrong,” Republican Representative Don Bacon said in an interview with NBC’s “Meet the Press.”

“It shows carelessness, negligence, and I think Americans should be mad,” he added, throwing his support behind a special counsel investigation on Pence similar to those investigating Trump and Biden.

White House officials maintain that Biden and his aides take treatment of classified materials seriously.

“The National Security Council staff, we deal with classified material every single day. You have to do that,” John Kirby, coordinator for strategic communications at the NSC, said during a briefing to reporters on Wednesday. “We all know what the rules are. We follow the rules. And the procedures exist for a reason.”

Public trust in elected officials is already at a historic low, with only 20% of Americans saying they trust the government in Washington to do what is right, according to a Pew Research poll.

“Most people think that the government does a pretty good job with national security,” Jennifer Mercieca, who teaches presidential rhetoric at Texas A&M University, told VOA. “These classified document scandals could affect how the public sees the government’s ability to guarantee safety.”

Some observers say that while officials must deal with classified materials more carefully, the U.S. government system suffers from rampant overclassification.

“Many millions of documents are classified each year, most of which do not contain any real secrets but are classified for political purposes,” said Allan Lichtman, presidential historian at American University who has written about reforming the U.S. classification system. “Until such reform is realized, the American people have a reason to distrust the classification system.”

As part of his Open Government Initiative, Obama signed an executive order mandating that the government cannot classify a document if “significant doubt” exists about the need to hide it.

Elizabeth Goitein, senior director of the Brennan Center for Justice’s Liberty & National Security Program, argues that the order doesn’t go far enough. She said officials overuse “Secret” and “Top Secret” stamps, keeping many documents that should be public from becoming available.

Katherine Gypson contributed to this report.

IMF Chief Praises Zambia’s Reforms, Pushes Creditors on Debt

The head of the International Monetary Fund is praising Zambia’s efforts to reform its economy and urging its creditors to restructure the country’s debts. Zambia was the first African country to default on its sovereign debt in the COVID era. Economists say prompt debt restructuring is needed to restart Zambia’s stagnant economy.

Speaking at the University of Zambia Tuesday, IMF managing director Kristalina Georgieva applauded Lusaka’s efforts to reform its economy, saying it had done its part and urging its creditors to do theirs.

She said the IMF had reached an understanding in principle with China to restructure almost $6 billion Zambia owes Beijing, one of its main creditors.

The IMF chief acknowledged global disruptions that shook Zambia’s economy.

“Over the last years, we have experienced two unthinkable events:  First COVID, that brought the world economy to a standstill for a prolonged period of time.  Second, the invasion by Russia of Ukraine,” said Georgieva.

Russia’s invasion of Ukraine in February last year disrupted food, energy, and other markets as western governments hit Moscow with sanctions and Russia’s navy stopped Ukraine’s grain exports. 

Zambia defaulted on its debt in November 2020, the first African country to do so after the COVID pandemic.

But Lusaka’s debt problem predates the pandemic.

The government under former President Edgar Lungu from 2015 more than doubled Zambia’s debt as a percentage of GDP, according to World Bank-collected data.

An IMF study released this month says corruption flourished under Lungu’s government, which his former ruling party rejects.

Current President Hakainde Hichilema, who was elected in 2021, pledged to tackle corruption and secured $1.3 billion in IMF support for Zambia’s debt with reforms that cut wasteful spending.   

Civil Society Debt Alliance economist Boyd Muleya said creditors’ delay in negotiating Zambia’s debt is slowing its economic recovery.

“So, the challenge that Zambia faces today mostly is the protracted nature of the debt restructuring process that we have seen and the challenge that further augments this conversation is the fact that there are no timelines that are set and so it creates a lot of uncertainties in terms of economic planning going forward,” said Muleya.

IMF director Georgieva met late Monday with President Hichilema and vowed to help resolve the impasse with creditors.

The Economics Association of Zambia’s Trevor Simumba said reaching a final deal on Zambia’s debt would also help the IMF reverse negative views in Africa on its strict policies.

“As you are aware the economy is stagnant, it’s not growing at a pace that’s required to grow in order to deal with the structural problems.  Simply by the textbook theories of the IMF in terms of the usual – we need to rein in inflation, we need to make sure that the exchange rate is stable, doesn’t depreciate, these things in reality don’t work,” he said.

Zambia says its foreign debt hit $17 billion last June as prices for copper, one of its key exports, crashed.

Zambia is Africa’s second largest producer of the valuable metal after the Democratic Republic of Congo.

Biden Pushing Assault Weapons Ban Renewal Following US Mass Shootings

As Californians deal with two deadly mass shootings just days apart, U.S. President Joe Biden is throwing his support behind gun control measures, including renewing the 1994 assault weapons ban he championed as a senator.

“Even as we await further details on these shootings, we know the scourge of gun violence across America requires stronger action. I once again urge both chambers of Congress to act quickly and deliver this assault weapons ban to my desk, and take action to keep American communities, schools, workplaces, and homes safe,” President Biden said in a statement Tuesday following Monday shootings in two locations at Half Moon Bay, California, that left at least seven people dead.

The shootings happened just two days after a gunman killed at least 11 people at a dance studio in Monterey Park, California, as that city’s Asian American community was celebrating Lunar New Year weekend.

On Monday, U.S. Senator Dianne Feinstein, a Democrat from California, along with Democratic senators from Connecticut Richard Blumenthal and Chris Murphy, introduced the bill to reinstate a federal assault weapons ban, as well as legislation to raise the minimum age to purchase an assault weapon to 21. That ban expired in 2004.

“The constant stream of mass shootings [has] one common thread: They almost all involve assault weapons. It’s because these weapons were designed to kill as many people as quickly as possible,” Feinstein said. “It’s time we stand up to the gun lobby and remove these weapons of war from our streets, or at the very least keep them out of the hands of young people.”

The weapons ban, opposed by Republicans and gun rights activists, blocks the sale of 19 specific weapons that have the features of guns used by the military and outlawed magazines that can hold more than 10 rounds of ammunition.

Democratic Congressman David Cicilline will introduce a companion version of the bill in the House of Representatives. Both chambers will need to pass the bill for it to reach Biden’s desk for signature into law — a very slim chance with Republicans controlling the House.

White House press secretary Karine Jean-Pierre said the administration is considering more executive actions to deal with reducing gun violence.

“But what we believe is that Congress needs to act,” she told reporters Tuesday.

There have been more deadly gun violence incidents so far this year than in any year on record — 39 mass shootings, defined as incidents with at least four victims shot, across the country in the first three weeks of 2023.

Last June, just over a month after the mass shooting at a Texas elementary school killed 19 children and two adults and a mass shooting at a Buffalo, N.Y. supermarket killed 10 Black people, Biden signed a bipartisan gun safety bill into law.

The legislation, the first major gun safety regulation passed by Congress in nearly 30 years, includes strengthening background checks for gun buyers between the ages of 18 and 21 and providing incentives for states to pass so-called red flag laws that allow groups to petition courts to remove weapons from people deemed a threat to themselves or others, among other provisions.