Greece Welcomes Return of Chinese Travelers 

With the peak tourism season setting in, Greece is bracing for a record number of arrivals and is welcoming back Chinese tourists. The warm feelings follow a period of discontent due to COVID-19 pandemic restrictions placed on travelers from China for the past three years, and other issues.

On the cobblestone streets of Athens, tavern owner Spiros Bairaktaris opens his arms wide open, welcoming news of what is already called the Chinese return.

He says, “We await them with great love, from the bottom of our hearts. We want to host them, to feed them, to offer all our services.”

All restaurants here, he says, are aching for their return.

While groups of Chinese travelers are just starting to trickle in, Greece expects the number to surge through the summer, exceeding the roughly 200,000 who visited the country ahead of the COVID-19 pandemic.

In recent months, a flurry of meetings between Greek and Chinese officials has helped ease visa restrictions. Direct flights have resumed, but also increased in number and locations in a strategy to boost inflows of travelers from China,

Tourism accounts for more than a quarter of Greece’s economic earnings. And with forecasts predicting more than 30 million travelers this summer, business and officials here say that the Chinese return will help stoke the engines of this country’s lackluster economy after a decade-long recession and the pandemic.

“In the past, we have seen that average spending from our friends from China was even double [that of] European travelers to Greece,” said Sofia Zacharaki, the deputy tourism minister.

Such sweeping feelings of welcome and enthusiasm are new.

Just five years ago and ahead of the pandemic, many businesses and locals said they upset with what they called an over-saturation of Chinese travelers. Greeks pointed to what they say was an over-commercialization of mass Chinese weddings against iconic sunsets on popular islands like Santorini.

They also say that on Santorini and other islands, law enforcement, garbage collection and other services were overstretched… due to the influx of mainly Chinese visitors. Concerns were also raised about reckless construction as the host islands sought to accommodate the visitors.

And many locals began fearing that Chinese and other visitors were posing threats to social cohesion.

Whether such deep-rooted concerns will creep up again remains unclear.

For now, though, restaurant menus are being translated into Mandarin, shops are being festooned with Chinese flags and hotel employees, are learning Mandarin.

 

 

German Government, Unions Reach Pay Deal for Public Workers 

German government officials and labor unions have reached a pay deal for more than 2.5 million public-sector workers, ending a lengthy dispute and heading off the possibility of disruptive all-out strikes.

The ver.di union had pressed for hefty raises as Germany, like many other countries, grapples with high inflation. Interior Minister Nancy Faeser said as the deal was announced around midnight Sunday that “we accommodated the unions as far as we could responsibly do in a difficult budget situation.”

The deal entails tax-free one-time payments totaling 3,000 euros ($3,300) per employee, with the first 1,240 euros coming in June and monthly payments of 220 euros following until February. In March, regular monthly pay for all will be increased by 200 euros, followed by a salary increase of 5.5% — with a minimum raise of 340 euros per month assured. The deal runs through to the end of 2024.

Ver.di originally sought a one-year deal with a raise of 10.5%. The deal was reached on the basis of a proposal by arbitrators who were called in after talks broke down last month.

Ver.di chair Frank Werneke said that “we went to our pain threshold with the decision to make this compromise.” He said that the raises in regular pay next year will amount to an increase of over 11% for most employees of federal and municipal governments.

The union has staged frequent walkouts over recent months to underline its demands, with local transport, hospitals and other public services hit.

Germany’s annual inflation rate has declined from the levels it reached late last year but is still high. It stood at 7.4% in March.

The past few months have seen plenty of other tense pay negotiations in Europe’s biggest economy, some of which have yet to be concluded. In a joint show of strength, ver.di and the EVG union — which represents many railway workers — staged a one-day strike last month that paralyzed much of the country’s transport network.

EVG, whose members walked off the job again on Friday, is seeking a 12% raise and has rejected the idea of negotiating a deal based on the arbitration proposal that helped resolve the public workers’ dispute. The next round of talks is set for Tuesday.

And ver.di is still in a dispute with Germany’s airport security companies association over pay and conditions for security staff. In the latest of a string of walkouts, it has called on security workers at Berlin Airport to walk out on Monday. The airport says there will no departures all day.

Twitter Begins Removing Blue Checks From Users Who Don’t Pay

This time it’s for real. 

Many of Twitter’s high-profile users are losing the blue check marks that helped verify their identities and distinguish them from impostors on the Elon Musk-owned social media platform. 

After several false starts, Twitter began making good on its promise Thursday to remove the blue checks from accounts that don’t each pay a monthly fee to keep them. Twitter had about 300,000 verified users under the original blue-check system—many of them journalists, athletes and public figures. The checks began disappearing from these users’ profiles late morning Pacific time. 

High-profile users who lost their blue checks Thursday included Beyonce, Pope Francis and former President Donald Trump.

The costs of keeping the marks range from $8 a month for individual web users to a starting price of $1,000 monthly to verify an organization, plus $50 monthly for each affiliate or employee account. Twitter does not verify the individual accounts to ensure the users are who they say they are, as was the case with the previous blue check doled out during the platform’s pre-Musk administration. 

Celebrity users, from basketball star LeBron James to “Star Trek’s” William Shatner, have balked at joining — although on Thursday, James’ blue check indicated that the account paid for verification. “Seinfeld” actor Jason Alexander pledged to leave the platform if Musk took his blue check away. 

‘Anyone could be me’

“The way Twitter is going anyone could be me now. The verification system is an absolute mess,” Dionne Warwick tweeted Tuesday. She had earlier vowed not to pay for Twitter Blue, saying the monthly fee “could [and will] be going toward my extra hot lattes.” 

On Thursday, Warwick lost her blue check. 

After buying Twitter for $44 billion in October, Musk has been trying to boost the struggling platform’s revenue by pushing more people to pay for premium subscriptions. But his move also reflects his assertion that the blue verification marks have become undeserved or “corrupt” status symbols for elite personalities, news reporters and others granted verification for free by Twitter’s previous leadership. 

Twitter began tagging profiles with blue check marks about 14 years ago. One main reason for doing so was to provide an extra tool to curb misinformation coming from accounts impersonating people. Most “legacy blue checks,” including the accounts of politicians, activists and people who suddenly find themselves in the news, as well as little-known journalists at small publications around the globe, are not household names. 

One of Musk’s first product moves after taking over Twitter was to launch a service granting a blue check to anyone willing to pay $8 a month. But it was quickly inundated by impostor accounts, including those impersonating Nintendo, pharmaceutical company Eli Lilly and Musk’s businesses Tesla and SpaceX, so Twitter had to suspend the service days after its launch. 

The relaunched service costs $8 a month for web users and $11 a month for users of Twitter’s iPhone or Android apps. Subscribers are supposed to see fewer ads, be able to post longer videos and have their tweets featured more prominently. 

Trade Envoy Tai: US Not Seeking to ‘Decouple’ From China

Washington is not seeking to decouple the American economy from China’s, U.S. Trade Representative Katherine Tai said Thursday while on a visit to Tokyo.

Tai, who is on her fourth visit to Japan after being appointed the top U.S. trade envoy, said all members of President Joe Biden’s administration have been “very clear that it is not the intention to decouple” China’s economy.

U.S. trade sanctions against China are “narrowly targeted,” she said.

Given its huge size and importance, unraveling the ties with China that keep the world economy running is “not a goal or achievable,” Tai said in a news conference at the Foreign Correspondent’s Club of Japan.

Chinese officials have often lashed out at the U.S. over trade sanctions and other restrictions on sharing of advanced technology with China, accusing Washington of trying to “contain” China and hinder its path toward greater affluence.

Tai said that regular trade work between the U.S. and China was continuing and she was “completely open to engaging with my counterparts in Beijing,” though she has no immediate plans to visit China.

At the same time, the United States is seeking to strengthen and expand economic security cooperation with its Asian allies and partners in response to China’s growing assertiveness and its dominance in many manufacturing industries.

Security and stability of supply chains is an issue that has gained urgency after disruptions caused by the pandemic and controls imposed to try to fight outbreaks of COVID-19 resulted in shortages of computer chips and other goods.

A recent agreement on trade in critical minerals will allow electric vehicles using metals sourced or processed in Japan to qualify for tax breaks under the Inflation Reduction Act. That deal is evidence of the U.S. commitment to “building collective resilience and security,” Tai said.

“We have all experienced the fragility of our dispersed supply chains in recent years, especially through the pandemic and Russia’s brutal, unjustified attack on Ukraine,” Tai said. “And we’ve become too reliant, we have discovered, on certain countries for the supply of critical minerals needed to fuel our clean energy future.”

A new approach

The Biden administration has been adopting a new approach to global trade, arguing that America’s traditional reliance on promoting free trade pacts failed to anticipate China’s brand of capitalism and the possibility that a major power like Russia would go to war against one of its trading partners.

Tai recently gave a speech at American University, where she spoke of “friend-shoring” — building up supply chains among allied countries and reducing dependence on geopolitical rivals such as China.

Tai pointed to a new trade partnership with Japan that she said has brought “tangible results for our workers, small businesses, and producers on both sides of the Pacific.” That includes an agreement to lift limits on U.S. exports of beef to Japan and a new biofuels policy to facilitate exports of more ethanol to Japan, she said.

Tai also reviewed the status of negotiations on the Indo-Pacific Economic Framework, or IPEF, a new trade pact proposed by Washington.

She said a third round of negotiations on the accord was planned in two weeks’ time in Singapore.

The framework has 13 members, including the U.S., that account for 40% of global gross domestic product: Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.

Efforts to fortify relationships

The U.S. has stepped up diplomacy across the region, with Secretary of State Antony Blinken stopping over the weekend in Vietnam, which Washington sees as a key component of its strategy for the region given the country’s traditional rivalry with its much larger neighbor China.

Tai’s Tokyo visit follows a trip to the Philippine capital, Manila, to help fortify trade relations among the three countries as they build both economic and defense ties.

During her stay in Japan, Tai met with Japanese Foreign Minister Yoshimasa Hayashi and discussed making supply chains more resilient and secure, the Japanese Foreign Ministry said in a statement.

She also met with the Minister of Economy, Trade and Industry Yasutoshi Nishimura. The trade ministry said the two also spoke about strengthening supply chains—an issue that gained urgency amid shortages of computer chips and other goods during the pandemic. They also discussed ways to cooperate in the protection of human rights in business, the ministry said.

Japan and the United States have set up a task force that aims to eliminate human rights violations in international supply chains and to ban use of materials from suppliers that subject their workers to inhumane conditions.

To highlight such efforts, Tai toured an outlet of outdoor equipment and clothing retailer Patagonia in Tokyo’s popular Shibuya shopping and business district.

Apple Inc Bets Big on India as It Opens First Flagship Store

Apple Inc. opened its first flagship store in India in a much-anticipated launch Tuesday that highlights the company’s growing aspirations to expand in the country it also hopes to turn into a potential manufacturing hub.

The company’s CEO Tim Cook posed for photos with a few of the 100 or so Apple fans who had lined up outside the sprawling 20,000-square-foot store in India’s financial capital, Mumbai, its design inspired by the iconic black-and-yellow cabs unique to the city. A second store will open Thursday in the national capital, New Delhi.

“India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history,” Cook said in a statement earlier.

The tech giant has been operating in India for more than 25 years, selling its products through authorized retailers and the website it launched a few years ago. But regulatory hurdles and the pandemic delayed its plans to open a flagship store.

The new stores are a clear signal of the company’s commitment to invest in India, the second-largest smartphone market in the world where iPhone sales have been ticking up steadily, said Jayanth Kolla, analyst at Convergence Catalyst, a tech consultancy. The stores show “how much India matters to the present and the future of the company,” he added.

For the Cupertino, California-based company, India’s sheer size makes the market especially encouraging.

About 600 million of India’s 1.4 billion people have smartphones, “which means the market is still under-penetrated and the growth prospect is huge,” said Neil Shah, vice president of research at technology market research firm Counterpoint Research.

Between 2020 and 2022, the Silicon Valley company has gained some ground in the smartphone market in the country, going from just about 2% to capturing 6%, according to Counterpoint data.

Still, the iPhone’s hefty price tag puts it out of reach for the majority of Indians.

Instead, iPhone sales in the country have thrived among the sliver of upper-middle-class and rich Indians with disposable incomes, a segment of buyers that Shah says is rising. According to Counterpoint data, Apple has captured 65% of the “premium” smartphone market, where prices range up from 30,000 rupees ($360).

In September, Apple announced it would start making its iPhone 14 in India. The news was hailed as a win for Prime Minister Narendra Modi’s government, which has pushed for ramping up local manufacturing ever since he came to power in 2014.

Apple first began manufacturing from India in 2017 with its iPhone SE and has since continued to assemble a number of iPhone models from the country.

Most of Apple’s smartphones and tablets are assembled by contractors with factories in China, but the company started looking at potentially moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.

“Big companies got a jolt, they realized they needed a backup strategy outside of China — they couldn’t risk another lockdown or any geopolitical rift affecting their business,” said Kolla.

Currently, India makes close to 13 million iPhones every year, up from less than 5 million three years ago, according to Counterpoint Research. This is about 6% of iPhones made globally — and only a small slice in comparison to China, which still produces around 90% of them.

Last week, India’s Commerce Minister Piyush Goyal said the government was in regular touch with Apple to support their business here and that the company had plans to have 25% of their global production come out of India in the next five years.

The challenge for Apple, according to Shah of Counterpoint, is that the raw materials are still coming from outside India so the tech company will need to either find a local supplier or bring their suppliers, based in countries like China, Japan and Taiwan, closer to drive up production.

Still, he’s optimistic this target could be met, especially with labor costs being lower in India and the government wooing companies with attractive subsidies to boost local manufacturing.

“For Apple, everything is about timing. They don’t enter a market with full flow until they feel confident about their prospects. They can see the opportunity here today — it’s a win-win situation,” Shah said.

Elon Musk Says He Will Launch Rival to Microsoft-backed ChatGPT

Billionaire Elon Musk said on Monday he will launch an artificial intelligence (AI) platform that he calls “TruthGPT” to challenge the offerings from Microsoft and Google.

He criticized Microsoft-backed OpenAI, the firm behind chatbot sensation ChatGPT, of “training the AI to lie” and said OpenAI has now become a “closed source,” “for-profit” organization “closely allied with Microsoft.”

He also accused Larry Page, co-founder of Google, of not taking AI safety seriously.

“I’m going to start something which I call ‘TruthGPT’, or a maximum truth-seeking AI that tries to understand the nature of the universe,” Musk said in an interview with Fox News Channel’s Tucker Carlson aired on Monday.

He said TruthGPT “might be the best path to safety” that would be “unlikely to annihilate humans.”

“It’s simply starting late. But I will try to create a third option,” Musk said.

Musk, OpenAI, Microsoft and Page did not immediately respond to Reuters’ requests for comment.

Musk has been poaching AI researchers from Alphabet Inc’s Google to launch a startup to rival OpenAI, people familiar with the matter told Reuters.

Musk last month registered a firm named X.AI Corp, incorporated in Nevada, according to a state filing. The firm listed Musk as the sole director and Jared Birchall, the managing director of Musk’s family office, as a secretary.

‘Civilizational destruction’

The move came even after Musk and a group of artificial intelligence experts and industry executives called for a six-month pause in developing systems more powerful than OpenAI’s newly launched GPT-4, citing potential risks to society.

Musk also reiterated his warnings about AI during the interview with Carlson, saying “AI is more dangerous than, say, mismanaged aircraft design or production maintenance or bad car production” according to the excerpts.

“It has the potential of civilizational destruction,” he said.

He said, for example, that a super intelligent AI can write incredibly well and potentially manipulate public opinions.

He tweeted over the weekend that he had met with former U.S. President Barack Obama when he was president and told him that Washington needed to “encourage AI regulation.”

Musk co-founded OpenAI in 2015, but he stepped down from the company’s board in 2018. In 2019, he tweeted that he left OpenAI because he had to focus on Tesla and SpaceX.

He also tweeted at that time that other reasons for his departure from OpenAI were, “Tesla was competing for some of the same people as OpenAI & I didn’t agree with some of what OpenAI team wanted to do.”

Musk, CEO of Tesla and SpaceX, has also become CEO of Twitter, a social media platform he bought for $44 billion last year.

In the interview with Fox News, Musk said he recently valued Twitter at “less than half” of the acquisition price.

In January, Microsoft Corp announced a further multi-billion dollar investment in OpenAI, intensifying competition with rival Google and fueling the race to attract AI funding in Silicon Valley.

China’s GDP Grew by 4.5% in Quarter, Boosted by Consumption

China’s gross domestic product grew 4.5% in the first quarter of the year, boosted by increased consumption and retail sales, after authorities abruptly abandoned the stringent “zero-COVID” strategy. 

The growth in the world’s No. 2 economy from January to March compared to the same period in 2022 was the fastest in the past year, and outpaced the 2.9% growth in the previous quarter, according to government data released Tuesday. 

The growth in GDP comes amid a rebound in consumption, as people flocked to shopping malls and restaurants after harsh COVID-19 restrictions were removed. 

In March, total retail sales of consumer goods went up by 10.6% year on year and grew 7.1 percentage points compared to the first two months of the year. 

Industrial production output, which measures activity in the manufacturing, mining and utilities sectors, grew by 3.9% in March compared to the same time last year. 

Fixed-asset investment — in which China invests in infrastructure and other projects to drive growth — rose by 5.1% in the first three months of 2023 compared to the same period last year. 

Investors are expected to scrutinize China’s first-quarter economic data for indicators of recovery following years of harsh lockdowns and a crackdown on the industries such as technology and real estate. 

Earlier this year, China’s government set this year’s economic growth target at “around 5%.” Last year’s growth in the economy fell to 3%, hampered by anti-virus controls that caused snap lockdowns and kept millions at home, sometimes for weeks on end. 

On Monday, China’s central bank kept rates on its one-year policy loans unchanged. Last week, it had vowed to step up support for the economy and maintain ample liquidity to support growth.  

House Speaker McCarthy: Republicans Will Raise US Debt Ceiling

U.S. House Speaker Kevin McCarthy pledged Monday that the narrow Republican majority in the House of Representatives will vote to raise the country’s debt ceiling to avert a default on the government’s financial obligations in the coming months, but will also stipulate that future spending increases be capped at 1%.

The White House strongly criticized the announcement.

McCarthy, in a speech at the New York Stock Exchange, called the country’s nearly $31.7 trillion debt a “ticking time bomb” and assailed Democratic President Joe Biden as “missing in action” in resolving the contentious issue before the government runs out of money to pay its bills, which could be as soon as June.

Any resulting default on the government’s financial obligations would be a U.S. first and could roil the world economy, plunge stock values and force widespread layoffs.

Biden and White House officials have called on Congress to approve a debt ceiling increase without conditions, as has often been done in the past, including during Republican administrations. But McCarthy said, “Since the president continues to hide, House Republicans will take action.”

McCarthy, who has had trouble in getting his 222-seat majority in the 435-member House to agree on a package of spending cuts to present to Biden, nonetheless told Wall Street leaders that the Republican caucus would pass legislation that would raise the debt ceiling for one year, pushing the issue next year into the midst of the 2024 presidential election campaign.

In addition, McCarthy said Republicans would roll back federal spending to fiscal 2022 levels and curb future spending boosts to no more than 1%. Republicans are also hoping to cut federal spending for social safety net programs for poorer Americans.

The White House, in a statement, said that McCarthy was breaking with the politically bipartisan norm in approving a debt ceiling increase without conditions, as happened twice during former President Donald Trump’s tenure. Biden has said he is willing to discuss future spending separately, aside from increasing the debt ceiling to authorize government borrowing to pay debts already incurred.

The White House said the Republican House leader “again failed to clearly outline what House Republicans are proposing and will vote on.” The White House contended Republicans would “increase costs for hard-working families, take food assistance and health care away from millions of Americans, and yet would enlarge the deficit when combined with House Republican proposals for tax giveaways skewed to the super-rich, special interests, and profitable companies.”

Biden and McCarthy met in early February about the debt ceiling but not since.

Senegal Gas Deal Drives Locals to Desperation, Prostitution

When the gas rig arrived off the coast of Saint-Louis, residents of this seaside Senegalese town found reason to hope. Fishing has long been the community’s lifeblood, but the industry was struggling with climate change and COVID-19. Officials promised the drilling would soon bring thousands of jobs and diversification of the economy.

Instead, residents say, the rig has brought only a wave of problems, unemployment and more poverty. And it’s forced some women to turn to prostitution to support their families, they told The Associated Press in interviews.

To make way for the drilling of some 15 trillion cubic feet of natural gas (425 billion cubic meters) discovered off the coasts of Senegal and neighboring Mauritania in West Africa in 2015, access to fertile fishing waters was cut off, with the creation of an exclusion zone that prevents fishermen from working in the area.

At first, the restricted areas were small, but they expanded to 1.6 square kilometers (0.62 square miles), roughly the size of 300 football fields, with construction of the platform that looms about 6 miles (10 kilometers) offshore.

Soon the work was overtaking the diattara, a word in the local Wolof language for the fertile fishing ground that lies on the ocean floor beneath the platform. With 90% of the town’s 250,000 people relying on fishing for income, the catch — and paychecks — were shrinking. Boxes of fish turned into small buckets, then nothing at all.

Saint-Louis, Senegal’s historic center for fishing, has faced many troubles over the past decade. Sea erosion from climate change washed away homes, forcing moves. Thousands of foreign industrial trawlers, many of them illegal, snapped up vast amounts of fish, and local men in small wooden boats couldn’t compete. The COVID-19 pandemic shut down market sales of the tiny hauls they could manage.

The rig was the final straw for Saint-Louis, pushing it to the brink of economic disaster, according to locals, officials and advocates. The benefits promised from the initial discovery of energy off the coast haven’t materialized. Production for the liquified natural gas deal — planned by a partnership among global gas and oil giants BP and Kosmos Energy and Senegal and Mauritania’s state-owned oil companies — has yet to begin.

Traditionally, many women make a living processing fish, while the men catch it; sons, husbands and fathers spend weeks at sea. But with the restrictions, families couldn’t feed their children or pay rent. They begged for leftovers from neighbors. Some were evicted.

Senegalese officials and the gas companies say people should be patient, as jobs and benefits from the gas deal will materialize. But locals say they’ve been stripped of their livelihoods and provided with no alternatives. That’s driven some women to prostitution, an industry that’s been legal in Senegal for five decades but still brings shame for those who break cultural and religious norms.

For them, prostitution is faster and more reliable than working in a shop or restaurant — jobs that don’t pay well and can be hard to find.

Four women who have started having sex with men for money since the rig came to town shared their stories with the AP on condition of anonymity because of the shame they associate with the work. They’ve hidden it from their husbands and families. They say they know many others like them.

The women explain the influx of cash as loans from friends and relatives. They know prostitution is legal but won’t register with Senegalese officials. That would mean a health screening and an official ID to carry with them.

They’re unwilling to legitimize work they say has been forced upon them.

For one family of seven, hitting bottom came when they were evicted. The father, a 45-year-old fisherman, lost his job. There wasn’t enough food to feed the five children, ages 2 to 11.

The mother tried washing clothes and other jobs, but at less than $10 a day, it wasn’t enough. The family moved in with relatives and she had nothing to feed the children before school each morning.

“I’m obliged to find money through prostitution,” she told the AP, her shoulders hunched and voice weary in a hotel room where she wouldn’t be seen by her husband or friends.

“When we use the money, when my children eat the food I cook from that money, it’s hard,” she said.

The family and others in Saint-Louis learned of the gas discovery shortly after it was announced in 2015. Two years later, energy companies BP and Kosmos established a presence in both Senegal and Mauritania and partnered with Petrosen and SMHPM, the state-owned companies, respectively.

The Greater Tortue Ahmeyim project, as the overall deal is called, is expected to produce around 2.3 million tons (2.08 million metric tons) of liquified natural gas a year, enough to support production for more than 20 years, according to the gas companies. Total cost for the first and second phases is nearly $5 billion, according to a report by Environmental Action Germany and Urgewald, a German-based environmental and human rights organization. The energy companies say phase one of the project is a multibillion-dollar investment, but didn’t specify the amount.

Completion of phase one is expected by the end of this year, when gas production should start, the companies said.

As early as 2018, Saint-Louis residents say, they were warned they would lose access to some of their favored fishing waters. Installation of the breakwater, the area where the platform sits, began by 2020.

BP is the operator and investor, owning nearly 60% of the project in Senegal and Mauritania. The deal promises to create thousands of jobs and provide electricity to a nation where approximately 30% of its 17 million people live without power.

The AP asked BP and Kosmos officials via email to comment for this story. The AP also sought comment about the companies’ efforts to mitigate effects of lost income in the community, their response to the women who say they’ve turned to prostitution, and other matters related to the deal.

In a statement to the AP, spokesman Thomas Golembeski said Kosmos had worked to build community relationships and that its employees visit Saint-Louis regularly to inform people of operations and act on feedback. Golembeski emphasized the project will provide a source of low-cost natural gas and expand access to reliable, affordable and cleaner energy. He also cited access to a micro-finance credit fund established for the fishing community.

He referred other questions to BP, as operator of the project.

BP sent prepared statements in response to the AP’s inquires. BP said it is engaging with the fishing communities in Senegal and Mauritania and trying to benefit the wider economy by locally sourcing products, developing the workforce and supporting sustainable development. More than 3,000 jobs in some 350 local companies have been generated in Senegal and Mauritania, according to the company. BP also cited its work to renovate the maternity unit at the Saint-Louis hospital and its help of 1,000 patients with a mobile clinic operating in remote areas.

But local officials, advocates and residents say they haven’t seen many jobs or other options to combat the economic loss.

BP did not respond to follow-up questions. Neither BP nor Kosmos addressed the AP’s questions about women who say they’ve been driven to prostitution.

When locals talk about the hardships stemming from the gas project, they use just one word: Fuel. To them, it encompasses all they feel has gone wrong in the community.

The rig looms in the background off the coast. Easy to spot on a clear day, the lights on the platform shine at night and resemble a cruise ship docked offshore. The smell of fish still permeates Saint-Louis, as pirogues — small wooden boats — line the shores and horse-drawn carts carry the diminishing catch to town.

Seasoned fishermen who’ve weathered past storms and changes to the industry say the gas deal poses problems on a different scale, largely thanks to the exclusion zone. Smaller boats aren’t equipped to venture past it, creating overcrowding in other fishing areas and depleting stocks for fishermen.

“Going to the diattara now is like going to hell,” said Aminou Kane, vice president for the Association of Fishermen Anglers of Saint-Louis.

Since the area became inaccessible, fishermen are quitting, risking their lives migrating to Europe, or fishing illegally in neighboring Mauritania where they face arrest, he said.

Kane, 46, is in the last group. He used to earn more than $1,000 a week fishing in Senegal and now makes roughly half that fishing secretly across the border, he said.

The mother who described turning to prostitution said her husband, too, tried to fish in Mauritanian waters. He left home to seek work there one year ago and she hasn’t heard from him since.

Despite money coming in from prostitution, the women who spoke to the AP said they and others struggle to feed and shelter their families. Some have pulled children out of private school because they can’t pay tuition.

The women can earn about $40 per client. Most work several times per week, in hotels or at the men’s homes when wives are away. The women describe most clients as well-off Senegalese men, including business leaders and government officials, though some are from neighboring or Western countries.

They find the clients through local contacts. In some cases, the men are family friends to whom the women initially turned to for money or loans. But they say the men eventually insisted upon sex in return for the cash. Some of the men paid well at first, but not as much anymore.

In other cases, women go through intermediaries with established networks of men looking for prostitutes.

A woman who spoke to the AP on condition of anonymity said she’s been running a business in Saint-Louis connecting men with prostitutes for seven years. She uses the name Coumbista in her work to protect her identity from her family and said she’s seen her clientele drop in recent years, with young fishermen seeing a loss of income due to the gas project.

Simultaneously, she said, the number of women seeking sex work spiked, increasing her roster by half. She knows of nearly 30 women who started sex work because of gas-related financial woes, and because of general poverty. Most then do the work secretly, she said.

A 29-year-old who turned to her for help last year after her husband stopped fishing sneaks out of the house several times a week after putting their three children to bed. She tells her husband she’s going to see friends or family.

“I am always afraid that I’ll be seen by people who know me,” she told the AP in the backseat of a car turning onto a quiet downtown street as she pointed to a nondescript building, one of two hotels where she has had sex with more than 20 men since she started. “I never thought that one day I would be doing this.”

The local government admits there has been an increase in illegal prostitution in recent years in Saint-Louis. Officials attribute the rise not directly to the energy deal, but to economic troubles overall.

“It’s not only the fishermen population or the traders, but it’s poverty in general that forces women into prostitution,” said Lamine Ndiaye, deputy to the Saint-Louis mayor.

People’s grievances about the rig are overblown and the community needs to be patient as it will take time to see the dividends, at least until after production, he said.

 Fossil fuel extraction hits communities particularly hard when the local economy depends on natural resources, according to environmental experts.

“If the land or sea that farmers or fishers rely on is poisoned and out of bounds, then their jobs and access to food have been robbed, and their communities can fall apart,” said Dr. Aliou Ba, head of Greenpeace Africa’s oceans campaign and a Senegalese resident. “That has happened in several countries in Africa, including in the Niger Delta. Oil and gas came in, contaminated the water, killed the fish and ruined many fishers’ way of life.”

He said the process is already playing out in Saint-Louis, and the community is suffering: “If the authorities let this spread along our coast, hundreds of thousands of fisheries jobs will be at risk, and the millions of people in this region who depend on fish for protein will be threatened.”

Shortly after the gas deal was signed, the companies noted there could be problems in Saint-Louis. A 2019 environmental and social impact assessment by BP and its partners said there were “a lot of uncertainties around the consequences for Saint-Louis fishermen of losing access to potential fishing grounds.” Still, it considered the intensity of the impact low, according to the report.

To mitigate economic consequences, the gas companies are evaluating options for a sustainable artificial reef project in Senegal and supporting 47 national apprentice technicians on a multiyear training program in preparation to work offshore and create jobs and supply chain opportunities, BP said in statements.

The technicians have been provided with 16 months of university training at Scotland’s Glasgow Caledonian University and will gain internationally recognized qualifications, BP said.

BP did not respond to questions about whether it stood by the company’s initial risk assessment.

Papa Samba Ba, director of hydrocarbons for Senegal’s gas and energy ministry, said the objective is that by 2035 half of all gas projects will go to local jobs, companies and services.

Phase one of the project will invest about 8.5% of the gas into Senegal; however, the local gas market isn’t set up yet and could take up to two years to be operational, he said.

There’s also concern among industry experts that because Senegal doesn’t have a history of oil and gas drilling, it won’t have enough skilled laborers, despite the training.

Fossil liquified natural gas infrastructure provides few direct jobs, and those often go to experts from outside the community, not locals, said Andy Gheorghiu, a climate consultant and co-founder of the Climate Alliance against LNG, a German-based organization focused on the environment.

Some experts point to scenarios that have played out in the U.S. In the fishing village of Cameron in Louisiana, which operates gas export terminals, people haven’t benefited from promised jobs and fishermen have been displaced from the community, according to locals.

“If you drive around Cameron Parish, home of three of these export terminals, you would not believe that these terminals have benefited the community in any way,” said James Hiatt, who lives close to Cameron and is director of For a Better Bayou, an environmental organization. The gas companies promised a new marina, restaurant and fishing pier, none of which have opened, he said.

The AP emailed Venture Global, the gas terminal operator that residents say made the promises, multiple times but received no response.

Environmental watchdogs say it would make more sense to invest in renewable energy. Senegal could create more than five times as many jobs in that sector yearly until 2030, compared with jobs in the fossil fuel industry, according to the Climate Action Tracker, an independent project that tracks government climate action.

But despite the suffering the community attributes to the gas, most say they don’t want the companies to leave. What they want is for the situation to change.

“When I think of my former life and my life today, it’s hard,” said one 40-year-old woman, wiping away tears.

The mother of three said she had to resort to prostitution last year after her husband left the city and cut contact. She’s pulled two of her children out of private school and sent them to public school, where the teachers sometimes don’t show up for days.

“I hope someone can help me out of this situation,” she said. “One in which no one would ever want to live.”

New US Electric Vehicle Rule Would Speed Supply Chain Changes

A Biden administration proposal would force U.S. automakers to sharply increase their production of electric cars and trucks over the next decade, lending greater urgency to the effort to build raw material supply chains that reduce the industry’s dependence on China.

The Environmental Protection Agency on Wednesday announced a proposed rule that would place stricter limits on the average tailpipe emissions of vehicles built in the United States. The proposal would reduce the allowable limit by so much that automakers would have no way to comply unless about two-thirds of the vehicles they produce by 2032 are emission-free electric vehicles.

Automakers have generally recognized that EVs represent the future of the industry, but Wednesday’s proposal would greatly accelerate the trend. The proposal, which will be open to public comment before it is finalized, would greatly reduce a leading cause of air pollution in the U.S., as well as the greenhouse gases that contribute to global warming.

“By proposing the most ambitious pollution standards ever for cars and trucks, we are delivering on the Biden-Harris administration’s promise to protect people and the planet, securing critical reductions in dangerous air and climate pollution, and ensuring significant economic benefits like lower fuel and maintenance costs for families,” said EPA Administrator Michael Regan.

The proposal, which would apply to new light-duty vehicles made in 2027 and beyond, would be the strictest environmental standard the federal government has ever applied to automobiles. If it does force the industry to make EVs account for two-thirds of production, it could also exceed President Joe Biden’s previously articulated target of making 50% of new cars either plug-in hybrids or completely emission-free by 2030.

Supply chain questions

Well before the EPA released its proposed rule Wednesday, the Biden administration had been moving to strengthen the EV market in the U.S. and to build a pipeline for raw materials that would reduce the auto industry’s reliance on China for key raw materials.

Accomplishing that reduction will be no small task. According to an analysis by the International Energy Agency last year, China produced three-quarters of the world’s lithium-ion batteries, the key component in the majority of EVs on the road.

China also has a dominant hold on much of the market for the components of those batteries, including lithium, cobalt and graphite. According to the IEA, more than half of the world’s capacity for processing and refining those materials is located in China.

According to the IEA, as of last year, the U.S. accounted for only 10% of EV production worldwide, and just 7% of production capacity for batteries.

Infrastructure projects

Last year’s passage of the Inflation Reduction Act, which contained hundreds of billions of dollars in climate-related spending, included the creation of large tax breaks restricted to EVs made at least partly in the U.S. The tax breaks are meant to extend over several years, but the restrictions become tighter as time goes on, creating incentives for manufacturers to “onshore” production to the U.S.

Tax breaks specific to the batteries used in EVs require that the raw materials used to assemble them come from domestic sources or from countries with which the U.S. has existing trade agreements.

Other pieces of legislation meant to spur investment in the U.S., including a major bipartisan infrastructure bill and the CHIPS and Science Act, also contain money and incentives that will help build out electric infrastructure in the U.S.

Achievable goals

Luke Tonachel, senior director for clean vehicles and buildings with the Natural Resources Defense Council, told VOA that building an EV supply chain centered on domestic production and imports from friendly countries is ambitious, but achievable.

Tonachel said the necessary raw materials are available from U.S. allies, but that the capacity for processing them needs to be built domestically. He said the creation of that capacity is already underway.

“There are robust incentives for building out that battery manufacturing and supply chain here in the U.S.,” he said, adding that he believes the administration’s time frame is feasible, especially now that the new standards have created certainty about future demand for EVs.

“It is realistic,” he said. “These are technologies that are known. We can certainly get more economies of scale as we ramp up production.”

Automakers tentative

Industry representatives said achieving the administration’s goal will require that a lot of disparate efforts be successful at the same time, not all of which are under their control. For example, a nationwide network of charging stations and the increased capacity to meet new demand for power will be essential to driving customer demand.

“It’s aggressive, and a lot of pieces have to work perfectly together,” Genevieve Cullen, president of the Electric Drive Transportation Association, told VOA. “Aside from the technology piece, the market piece has to work, and supply chain speed is part of that. Consumer incentives are working to help bring them into the equation, and we need to keep expanding infrastructure at a pace that meets, and perhaps exceeds, the needs in the beginning so that people feel the confidence that they need to switch to battery electric.”

John Bozzella, president of the trade group Alliance for Automotive Innovation, said in a blog post Wednesday that the administration’s plan is “aggressive by any measure” and that its success would depend on more than just automakers being able to ramp up production.

“To some extent, the baseline policy framework for the transition has come into focus,” Bozzella said. “But it remains to be seen whether the refueling infrastructure incentives and supply-side provisions of the Inflation Reduction Act, the bipartisan infrastructure law, and the CHIPS and Science Act are sufficient to support electrification at the levels envisioned by the proposed standards over the coming years.”

Cheaper Gas and Food Provide Some Relief from US Inflation

U.S. consumer inflation eased in March, with less expensive gas and food providing some relief to households that have struggled under the weight of surging prices. Yet prices are still rising fast enough to keep the Federal Reserve on track to raise interest rates at least once more, beginning in May.

The government said Wednesday that consumer prices rose just 0.1% from February to March, down from 0.4% from January to February and the smallest increase since December.

Measured from a year earlier, prices were up just 5% in March, down sharply from February’s 6% year-over-year increase and the mildest such rise in nearly two years. Much of the drop resulted from price declines for such goods as gas, used cars and furniture, which had soared a year ago after Russia’s invasion of Ukraine.

Excluding volatile food and energy costs, though, so-called core inflation is still stubbornly high. Core prices rose 0.4% from February to March and 5.6% from a year earlier. The Fed and many private economists regard core prices as a better measure of underlying inflation. The year-over-year figure edged up for the first time in six months.

As goods prices have risen more slowly, helping cool inflation, costs in the nation’s services sector — everything from rents and restaurant meals to haircuts and auto insurance — have jumped, keeping core prices elevated.

“It’s comforting that headline inflation is coming down, but the inflation story has had some shifts under the hood in the last couple of years,” said Sonia Meskin, head of U.S. economics at BNY Mellon’s investment division. “Overall inflation still remains much too strong.”

Even so, the March data offered some signs that suggest inflation is slowly but steadily headed lower. Rental costs, which have been one of the main drivers of core inflation, rose at the slowest pace in a year. And grocery prices fell for the first time in 2 1/2 years.

Grocery prices dropped 0.3% from February to March. The cost of beef fell 0.3%, milk 1% and fresh fruits and vegetables 1.3%. Egg prices, which had soared after an outbreak of avian flu, plunged nearly 11% just in March, though they remain 36% more expensive than a year ago.

Despite last month’s decline, food costs are still up more than 8% in the past year. And restaurant prices, up 0.6% from February to March, have risen nearly 9% from a year ago.

Paul Saginaw, who owns Saginaw’s deli in Las Vegas, said nearly all the costs of a Reuben sandwich — his most popular — including corned beef, cheese and bread, have soared. He charges 10% more for a Reuben than he did 2 1/2 years ago, although he said “our costs have gone up a lot more” than that.

Saginaw is also paying more for paper goods and packaging, just as takeout and delivery orders have become a much bigger part of his business. One clamshell-style food container has jumped from 43 cents apiece to 98 cents.

“Everything we use has gone up,” he said.

Rich Pierson, a semi-retired owner of a financial planning business who was shopping this week at Doris Italian Market and Bakery in North Palm Beach, Florida, said high restaurant prices have led him and his wife to eat much more at home.

“We cook more at home than we ever have due to the rising costs,” he said. “You do look for the occasional deals and add value when you can — that’s for sure.”

Gas prices fell 4.6% just from February to March, a drop that partly reflected seasonal factors: Prices at the pump usually rise during spring. Gas costs have tumbled 17% over the past year.

Yet price increases in the service sector are keeping core inflation high, at least for now. That trend is widely expected to lead the Fed to raise its benchmark interest rate for a 10th straight time when it meets in May.

Travel costs are still rising as Americans make up for lost vacation time during the pandemic. Airline fares rose 4% from February to March and are up nearly 18% in the past year. Hotel prices jumped 2.7% last month and are up 7.3% from a year ago.

Among the biggest drivers of inflation has been rental costs, which make up one-third of the government’s consumer price index. Rental costs rose 0.5% from February to March. Though still high, that was the smallest such increase in a year.

According to Wednesday’s government report, rents have risen by about 9% from a year ago. Yet Apartment List, which tracks real-time changes in new leases, shows rents rising at a 2.6% annual pace. As more apartments reset with those smaller increases, the government’s inflation data should show milder increases in coming months.

“It’s something that’s certainly coming, there has been some moderation in rents,” said Mark Vitner, chief economist at Piedmont Crescent Capital.

Fed officials have projected that after one additional quarter-point hike next month — which would raise their benchmark rate to about 5.1%, its highest point in 16 years — they will pause their hikes but leave their key rate unchanged through 2023. But officials have cautioned that they could raise rates further if they deem it necessary to curb inflation.

When the Fed tightens credit with the goal of cooling the economy and inflation, it typically leads to higher rates on mortgages, auto loans, credit card borrowing and many business loans. The risk is that ever-higher borrowing rates can weaken the economy so much as to cause a recession.

On Tuesday, the International Monetary Fund, a 190-nation lending organization, warned that persistently high inflation around the world — and efforts by central banks, including the Fed, to fight it — would likely slow global growth this year and next.

There are other signs that inflation pressures are easing. The Fed’s year-long streak of rate hikes are also starting to cool a hot labor market, with recent data showing that companies are advertising fewer openings and that wage growth has been slowing from historically elevated levels.

A more worrisome trend is the possibility that banks will pull sharply back on lending to conserve funds, after two large banks collapsed last month, igniting turmoil in the United States and overseas. Many smaller banks have lost customer deposits to huge global banks that are perceived to be too big to fail. The loss of those deposits will likely mean that those banks will extend fewer loans to companies and individuals.

Some small businesses say they are already having trouble getting loans, according to a survey by the National Federation for Independent Business. The IMF said Tuesday that pullbacks in lending could slow growth by nearly a half-percentage point over the next 12 months.

A slowdown in the economy could cool inflation and as a result would help the Fed achieve its objectives. But the blow to the economy might prove larger than expected. Under the worst-case scenario, it could mean a full-blown recession with the loss of millions of jobs.

 

Musk Says Owning Twitter ‘Painful’ But Needed To Be Done

Billionaire Elon Musk has told the BBC that running Twitter has been “quite painful” but that the social media company is now roughly breaking even after he acquired it late last year.

In an interview also streamed live late Tuesday on Twitter Spaces, Musk discussed his ownership of the online platform, including layoffs, misinformation and his work style.

“It’s not been boring. It’s quite a rollercoaster,” he told the U.K. broadcaster at Twitter’s San Francisco headquarters.

It was a rare chance for a mainstream news outlet to interview Musk, who also owns Tesla and SpaceX. After buying Twitter for $44 billion last year, Musk’s changes included eliminating the company’s communications department.

Reporters who email the company to seek comment now receive an auto-reply with a poop emoji.

The interview was sometimes tense, with Musk challenging the reporter to back up assertions about rising levels of hate speech on the platform. At other times, Musk laughed at his own jokes, mentioning more than once that he wasn’t the CEO but his dog Floki was.

He also revealed that he sometimes sleeps on a couch at Twitter’s San Francisco office.

Advertisers who had shunned the platform in the wake of Musk’s tumultuous acquisition have mostly returned, the billionaire said, without providing details.

Musk predicted that Twitter could become “cash flow positive” in the current quarter “if current trends continue.” Because Twitter is a private company, information about its finances can’t be verified.

After acquiring the platform, Musk carried out mass layoffs as part of cost-cutting efforts. He said Twitter’s workforce has been slashed to about 1,500 employees from about 8,000 previously, describing it as something that had to be done.

“It’s not fun at all,” Musk said. “The company’s going to go bankrupt if we don’t cut costs immediately. This is not a caring-uncaring situation. It’s like if the whole ship sinks, then nobody’s got a job.”

Asked if he regretted buying the company, he said it was something that “needed to be done.”

“The pain level of Twitter has been extremely high. This hasn’t been some sort of party,” Musk said.

Poll: 4 in 10 Americans Say Next Vehicle Will Be Electric 

Many Americans aren’t yet sold on going electric for their next cars, a new poll shows, with high prices and too few charging stations the main deterrents. About 4 in 10 U.S. adults are at least somewhat likely to switch, but the history-making shift from the country’s century-plus love affair with gas-driven vehicles still has a ways to travel.

The poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago shows that the Biden administration’s plans to dramatically raise U.S. EV sales could run into resistance from consumers. Only 8% of U.S. adults say they or someone in their household owns or leases an electric vehicle, and just 8% say their household has a plug-in hybrid vehicle.

Even with tax credits of up to $7,500 to buy a new EV, it could be difficult to persuade drivers to ditch their gas-burning cars and trucks for vehicles without tailpipe emissions.

Auto companies are investing billions in factories and battery technology in an effort to speed up the switch to EVs to cut pollution and fight climate change. Under a greenhouse gas emissions proposal from the Environmental Protection Agency, about two-thirds of all new vehicle sales could have to be EVs by 2032. President Joe Biden has set a goal that up to half of all new vehicle sales be electric by 2030 to cut emissions and fight climate change.

But only 19% of U.S. adults say it’s “very” or “extremely” likely they would purchase an electric vehicle the next time they buy a car, according to the poll, and 22% say it’s somewhat likely. About half — 47% — say it’s not likely they would go electric.

Six in 10 said the high cost is a major reason they wouldn’t and about a quarter cited it as a minor reason. Only 16% said the high cost would not be a factor in rejecting the EV.

New electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households. (The average vehicle sold in the U.S. costs just under $46,000.) Tax credits approved under last year’s Inflation Reduction Act are designed to bring EV prices down and attract more buyers.

But new rules proposed by the U.S. Treasury Department could result in fewer electric vehicles qualifying for a full $7,500 federal tax credit later.

Many vehicles will only be eligible for half the full credit, $3,750, an amount that may not be enough to entice them away from less-costly gasoline-powered vehicles.

About three-quarters say too few charging stations is a reason they wouldn’t go electric, including half who call it a major reason. Two-thirds cite a preference for gasoline vehicles as a major or minor reason they won’t go electric.

“I’m an internal combustion engine kind of guy,” said Robert Piascik, 65, a musician who lives in Westerville, Ohio, a Columbus suburb. “I can’t see myself spending a premium to buy something that I don’t like as much as the lower-priced option.”

Although he has nothing against EVs and would consider buying one as the technology improves and prices fall, Piascik said the shorter traveling range, lack of places to charge and long refueling times would make it harder for him to go on trips.

In his 2017 BMW 3-Series, all he has to do is pull into a gas station and fill up in minutes, Piascik said. “The early adopters have to put up with a lack of infrastructure,” he said.

Biden has set a goal of 500,000 EV charging stations nationwide, and $5 billion from the 2021 infrastructure law has been set aside to install or upgrade chargers along 75,000 miles (120,000 kilometers) of highway from coast to coast.

Electric car giant Tesla will, for the first time, make some of its charging stations available to all U.S. electric vehicles by the end of next year, under a plan announced in February by the White House. The plan to open the nation’s largest and most reliable charging network to all drivers is a potential game-changer in promoting EV use, experts say.

High prices and a lack of available chargers are cited by at least half of Democrats and Republicans as main reasons for not buying an EV, but there’s a partisan divide in how Americans view electric vehicles. About half of Republicans, 54%, say a preference for gasoline-powered vehicles is a major reason for not buying an EV, while only 29% of Democrats say that.

James Rogers of Sacramento, California, a Democrat who voted for Biden, calls climate change an urgent problem, and he supports Biden’s overall approach. Still, he does not own an EV and isn’t planning to buy one, saying the price must come down and the charging infrastructure upgraded.

Even with a tax credit that could put the average price for a new EV close to $50,000, “it’s too much” money, said Rogers, 62, a retired customer service representative. He’s willing to pay as much as $42,000 for an EV and hopes the market will soon drive prices down, Rogers said.

In an encouraging finding for EV proponents, the poll shows 55% of adults under 30 say they are at least somewhat likely they will get an electric vehicle next time, as do 49% of adults ages 30 to 44, compared with just 31% of those 45 and older.

And people in the U.S. do see the benefits to an EV. Saving money on gasoline is the main factor cited by those who want to buy an EV, with about three-quarters of U.S. adults calling it a major or minor reason.

Making an impact on climate change is another big reason many would buy an EV, with 35% saying that reducing their personal impact on the climate is a major reason and 31% saying it’s a minor reason.

World Bank, IMF Spring Meetings Get Underway in Complex Economic Environment

The World Bank and International Monetary Fund’s spring meetings kick off this week with an ambitious reform and fundraising agenda likely to be overshadowed by concerns over high inflation, rising geopolitical tension and financial stability.

“Despite the remarkable resilience of consumer spending in the United States, in Europe, despite the uplift from China’s reopening, global growth would remain below 3%” in 2023, IMF managing director Kristalina Georgieva told a press conference on Monday.

The fund now expects global growth to remain at close to 3% for the next half decade — its lowest medium-term prediction since the 1990s.

Close to 90% of the world’s advanced economies will experience slowing growth this year, while Asia’s emerging markets are expected to see a substantial rise in economic output — with India and China predicted to account for half of all growth, Georgieva said last week.

Low-income countries are expected to suffer a double shock from higher borrowing costs and a decline in demand for their exports, which Georgieva said could fuel poverty and hunger.

Updated growth projections published in the IMF’s World Economic Outlook on Tuesday will provide a broader look at how different countries are coping, with additional publications to detail fiscal and financial challenges to the global economy.

The World Bank, which forecast a gloomier economic picture than the IMF earlier this year, is slightly raising its prediction for global growth in 2023, from 1.7 in January to 2%, spurred by China’s economic reopening, the bank’s president David Malpass said at a press conference on Monday.

Tackling inflation remains a priority

This year’s spring meeting will be held amid high inflation and ongoing concerns about the health of the banking sector following the dramatic collapse of Silicon Valley Bank.

Georgieva said last week that central banks should continue battling high inflation through interest-rate hikes, despite concerns that it could further inflame the banking sector.

“We don’t envisage, at this point, central banks stepping back from fighting inflation,” she told AFP in an interview.

“Central banks still have to prioritize fighting inflation and then supporting, through different instruments, financial stability,” she said.

Ahead of the spring meetings, the IMF and World Bank also called on wealthier countries to help plug a $1.6 billion hole in a concessional lending facility for low-income countries that was heavily used during the COVID-19 pandemic.

Many low-income countries are now facing mounting debt burdens due in part to the higher interest-rate environment, which is also leading to capital outflows from many of the countries most in need of investment.

“For many of the developing countries it looks like they’re in a phase of decapitalization rather than recapitalization,” Malpass said on Monday. “That’s gravely concerning.”

US pushes for World Bank reforms

Malpass and Georgieva will use this year’s spring meetings to try and make progress on stalled debt restructuring reforms.

“The goal is to share information earlier in the debt restructuring process and work toward comparable burden sharing,” Malpass said.

There will also be a meeting on Wednesday to address war-torn Ukraine’s recovery and reconstruction needs, with the World Bank estimating the country faces an “additional” $11 billion funding shortfall this year.

The spring meetings also provide an opportunity to make progress on an ambitious U.S.-backed agenda to reform the World Bank, so it is better prepared to tackle long-term issues like climate change.

U.S. Treasury Secretary Janet Yellen told AFP she expects member states will agree to update the World Bank’s mission statement to include “building resilience against climate change, pandemics and conflict and fragility,” to its core goals.

Yellen said she also expects an agreement to “significantly” stretch the World Bank’s financial capacity, which “could result in an additional $50 billion in extra lending capacity over the next decade.”

The changes will likely fall to the bank’s next president to implement, with Malpass due to step down early from a tenure marked by concerns over his position on climate change.

He is widely expected to be replaced by U.S.-backed former Mastercard chief executive officer Ajay Banga, who was the only person nominated for the position.