<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-820x547.jpg" alt="" class="wp-image-428223" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107315470-1697048311311-ajn-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Secretary of Treasury Janet Yellen arrives for a bilateral meeting on the third day of the International Monetary Fund and World Bank annual meeting, in Marrakech, Morocco, October 11, 2023.
Susana Vera | Reuters</figcaption></figure>



Overshadowed by fresh Middle East violence and hosted by a country still recovering from an earthquake, the week-long annual meetings of the International Monetary Fund and World Bank wrapped up on Saturday.



Discussions in the Moroccan city of Marrakech ranged from the prospects for a world economy weighed down by debt, inflation and conflict to the growing wealth gap between rich and poor countries and floundering efforts to tackle climate change.



Here are the main takeaways:



<h2 class="wp-block-heading" id="h-limping-economy">‘Limping economy’</h2>



The new IMF outlook &#8211; signed off before the escalation of the conflict between Israel and Hamas &#8211; sees global economic growth slowing from 3.5% last year to 3% this year and 2.9% next year, a 0.1% point downgrade from a previous 2024 estimate.



Global inflation is seen dropping from 6.9% this year to a still-high 5.8% next. Central bankers signaled readiness to end interest rate hikes if events allow, hopeful that inflation can be finally tamed without too hard a landing.



Most agreed it was too early to say how Middle East strife would affect a global economy which IMF chief economist Pierre-Olivier Gourinchas described as “limping along, not sprinting”.



<h2 class="wp-block-heading" id="h-debt-squeeze"><a></a>Debt squeeze</h2>



The heavy debt burdens of advanced economies — from the United States to China and Italy — was a recurrent theme in the meetings, which came after financial markets in recent weeks pushed U.S. bond yields higher. Italian central bank governor Ignazio Visco said there was an impression markets were “reevaluating the term premium” as investors become more nervous about holding longer-term debt.



JPMorgan chair of global research Joyce Chang put it another way. “The bond vigilantes are back, and the Great Moderation is over,” she told a panel of the two-decade era of relative economic calm before the 2008/09 financial crisis.



One policy area where this could have a knock-on effect is the fight against climate change. Vitor Gaspar, head of the IMF’s fiscal division, warned current subsidies-based policies were failing to deliver net zero emissions and that scaling them up would explode public debt. “Countries will need a new mix of policies with carbon pricing at the center,” the Fund concluded.



<h2 class="wp-block-heading" id="h-debt-deals-and-reforms"><a></a>Debt deals and reforms</h2>



Looking beyond the major developed economies, higher policy rates, a strong dollar and geopolitical uncertainties are adding to challenges for the rest of the world.



Turkey was in the spotlight as Finance Minister Mehmet Simsek pitched its reform plan. “The biggest structural issue is to bring inflation down. And they’re working on it,” said Murat Ulgen, Global Head of Emerging Markets Research at HSBC.



Kenya is looking to avoid slipping into debt distress and its central bank governor told Reuters it plans a buyback of a quarter of its $2 billion international bond maturing in June &#8211; pushing its 2024 bond up 1.2 cents on the dollar.



One debt restructuring deal emerged: Zambia finally agreed a debt rework memorandum of understanding with creditors including China and France.



Progress on Sri Lanka was less clear. Sri Lanka said on Thursday it reached an agreement with the Export-Import Bank of China covering about $4.2 billion of debt, while talks with other official creditors are stalling.



<h2 class="wp-block-heading" id="h-risks-skewed-to-the-downside"><a></a>Risks skewed to the downside</h2>



High interest rates will put some borrowers in more precarious positions, the IMF warned in its Global Financial Stability Report. Around 5% of banks globally are vulnerable to stress if those rates remain higher for longer, it estimated, and a further 30% of banks — including some of the world’s largest — would be vulnerable if the global economy enters a prolonged period of low growth and high inflation.



<h2 class="wp-block-heading" id="h-jostling-for-influence"><a></a>Jostling for influence</h2>



The Ukraine war, growing trade protectionism and tensions between the United States and China are all making consensus-building tougher: In the end, there was not enough agreement to issue the usual final communique at the end of the meetings.



There was much talk ahead of Marrakech on revamping the IMF and World Bank to better reflect the emergence of economies like China and Brazil. A U.S. proposal to boost IMF lending power but save a review of shareholdings in the fund till later won broad support. A pact announced on Saturday spoke of a “meaningful increase” in quotas by end-2023 but gave few other details. Anti-poverty groups were skeptical of what had been achieved.



“The big theme this week is G-7 countries papering over the cracks of shattered promises,” said Kate Donald, Head of Oxfam International’s Washington, D.C., office. “Despite the wringing of hands about the billions of dollars needed to tackle poverty and climate breakdown, there has been no sign of new money.”

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Key takeaways from the IMF-World Bank meetings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-820x547.jpeg" alt="" class="wp-image-428218" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Yellow taxi cabs drive down a road in Senegal’s capital city of Dakar on Sept. 6, 2023. John Wessels | Afp | Getty Images</figcaption></figure>



BEIJING — An ambassador of an African country to China has criticized the International Monetary Fund and the World Bank for restrictive lending policies.



“The problem is that the ratings we are making for the African [countries] should be different,” Ibrahima Sory Sylla, ambassador for the West African country of&nbsp;Senegal, said Thursday at an event at Peking University.



He said ratings from Fitch or Standard and Poor’s don’t take into account local factors such as&nbsp;food security&nbsp;— but they are the basis for IMF and World Bank assessments of economic sustainability.



The number of people in West Africa experiencing an acute lack of food surged by nearly 40% in a year, according to a&nbsp;Reuters report&nbsp;in December citing the United Nation’s World Food Programme. The figure surged 60% during that time for the number of East Africans, the report said.



Senegal significantly increased its borrowing from China in 2021 and 2022, according to the Chinese Loans to Africa database managed by Boston University’s Global Development Policy Center.



While that reflected a spike in West African borrowing, such loan activity was more muted in other parts of Africa — reversing a growth trend of the last 20 years, the data showed.



“What we can understand is that so many [multilateral development banks] through the G20 [debt] suspension initiative, they said you have to go through this initiative, but when you [do so], they suddenly decided to downgrade your risk,” Senegal’s Sylla said. “And most of the developed countries, the Western countries, they can go beyond to 200% of the ratio between the debt and the GDP. Their rating is not downgraded.”&nbsp;



The IMF, World Bank and S&amp;P did not immediately respond to CNBC’s request for comment.



A Fitch Ratings spokesperson told CNBC all its sovereign rating decisions are “taken solely in accordance with one globally consistent and publicly available rating criteria.”



“Rating decisions are based on independent, robust, transparent and timely analysis,” the person added.



“My sincere belief is that IMF officials, World Bank officials, they are sincere in their belief that their debt sustainability framework works and works for the greater good,” said Jang Ping Thia, lead economist and manager of the economics department at the Asian Infrastructure Investment Bank.



“Many times, the IMF chief at the desk, try their best to stretch the envelope for the country,” Thia said at the same event Thursday.



Thia said he just returned from a trip to Africa two weeks ago and saw a “brand-new city” being built by many Chinese contractors — but with very low occupancy.



“That makes me very worried,” he said, declining to name the specific African country.



“The loan itself matters, infrastructure matters, but timing and debt management and absorption capacity matters, coordinating and staggering out and having a plan,” said the AIIB economist. “Build slowly, get people in, build more, is sometimes much more efficient, maybe not as big [a] bang.”



<h2 class="wp-block-heading" id="h-belt-and-road-forum"><a></a>Belt and Road Forum</h2>



The event about Chinese financing to Africa came just days before the country was set to hold its third Belt and Road forum, a gathering of countries involved in the China-led initiative for regional infrastructure development. Russian President Vladimir Putin is set to attend the forum, scheduled for Tuesday and Wednesday in Beijing.



Critics say the Belt and Road Initiative is a way for China to expand its global influence, while forcing poor countries to take on debt for infrastructure development, only to find themselves unable to repay the loans.



From 2000 to 2020, China loaned $160 billion to African countries, according to a report released Thursday by Peking University’s Institute of New Structural Economics. The research claimed every 1% increase in Chinese loans resulted in an increase of 0.176% in African economic growth.



Allan Joseph Chintedza, ambassador of Malawi to China, said the report should look also at the repayment period for Chinese loans.



“The gesture and what the [Belt and Road Initiative] is trying to do is perfect. It would be very sad if we actually lost out because we are not addressing some of the key issues that we need to address that you gave,” Chintedza said, without specifying.



The East African country needs&nbsp;to provide a “sustainability letter”&nbsp;from the Chinese government in order to borrow more from the IMF, Chintedza added. “Instead of us concentrating on implementing these agent programs, we are caught in between negotiations of trying to raise [funds], to improve or at least justify the debts that we have.”



“I think the majority of the loans has to be extended because that’s the only way we can be given breathing space to be able to meet the requirements but also to invest in the social sense,” he said.



Malawi has borrowed $484.6 million from China since 2000, according to the Chinese Loans to Africa Database, which does not track repayments.



“I cannot deny that the financing cooperation between China and Africa are facing some challenge or difficulties, because [of] some [countries] defaulting and the debt problem is in front of us,” said Wu Peng, director-general for the department of African affairs&nbsp;at China’s foreign ministry.



“So we cannot ignore this challenge. But I have &#8230; confidence that we still can cooperate in this field,” Wu said, adding that he is working with Chinese banks on loans for railway projects in Western Africa, which will likely be announced “in weeks.”

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African ambassador criticizes IMF, World Bank for not giving enough loans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



MARRAKECH, Morocco, Oct 13 (Reuters)&nbsp;&#8211;&nbsp;The World Bank on Friday said it is bolstering collaboration with nine multilateral development banks (MDBs) to accelerate its vision of a&nbsp;liveable planet&nbsp;free of poverty.



It said measures already being implemented or under consideration by the MDBs could yield $300 billion to $400 billion of additional lending capacity to help developing countries confront &#8220;a perfect storm of intertwined crises — from climate shocks and conflicts to pandemics and surging debt.&#8221;



Increased collaboration among the multilateral development banks is a key part of the World Bank&#8217;s new playbook, and one supported in a statement at the ongoing annual meetings of the Bank and International Monetary Fund by Group of 20 finance leaders.



The African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, and the New Development Bank joined the World Bank in the collaboration agreement.



&#8220;Working together for a common cause, we can bring more experience, expertise, knowledge, and, especially, more funding to the massive challenges facing the world today,&#8221; World Bank President Ajay Banga said. &#8220;Together, we are greater than the sum of our parts.&#8221;



The banks agreed to boost financing capacity through portfolio guarantees and hybrid capital, while stepping up a joint approach to credit rating agencies.



They said they would boost collective efforts on climate, with better tracking and reporting of climate outcomes, while enhancing country-level collaboration for greater impact.



They would also work to catalyze private sector engagement.



The World Bank is strengthening efforts to partner with the private sector, civil society, other multilateral institutions, and charitable organizations.



(Reporting by Andrea Shalal; editing by Christina Fincher and John Stonestreet)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank, multilateral development banks jointly seek to boost lending power

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145-820x462.jpeg" alt="" class="wp-image-428174" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316539-1697159674866-gettyimages-1720140335-fc_1113145.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view of a container ship leaving the dockyard in Qingdao in east China’s Shandong province. Future Publishing | Future Publishing | Getty Images</figcaption></figure>



BEIJING — China reported a smaller-than-expected decline in exports in September from a year ago, while imports missed, according to customs data released Friday.



In U.S.-dollar terms, exports fell by 6.2% last month from a year ago. That’s less than the 7.6% drop forecast by analysts in a Reuters poll.



Imports also fell by 6.2% in U.S.-dollar terms in September compared to a year ago — slightly more than the 6% decline expected by the Reuters poll.



China’s exports have fallen on a year-on-year basis every month this year starting in May. The last positive print for imports on a year-on-year basis was in September last year.



China’s trade slumped this year amid lackluster global demand for Chinese good and muted domestic demand.



Bucking the decline in trade with major trading partners were Chinese imports from the European Union, up modestly in September from a year ago, according to CNBC calculations of the official data.



The U.S. is China’s largest trading partner on a single-country basis, while the Association of Southeast Asian Nations has recently surpassed the EU as China’s largest trading partner on a regional basis.



For the first three quarters of the year, China’s exports to the U.S. fell by 16.4%, while imports dropped by 6% during that time.



Russia was the only major country or region in the Chinese customs agency’s report that showed growth in both exports and imports for the first three quarters of the year from a year ago.



By product category, China’s global export of autos remained the fastest growing, up on a unit basis by 64.4% from a year ago for the first three quarters of 2023. That’s slower than the 69% pace for the year recorded as of August.



China’s exports of ships and boats for the year picked up pace from August on a unit basis to a 16.2% year-on-year increase in the third quarter.



The volume of China’s cosmetics imports fell by 14.2% in the first three quarters compared to a year ago. The volume of crude oil imports rose by 14.6% during that time but fell on a U.S. dollar basis.



The pace of crude oil imports on a year-to-date basis in September was little changed from August.



<h2 class="wp-block-heading" id="h-slowing-economic-growth"><a></a>Slowing economic growth</h2>



China’s recovery from the pandemic slowed in the last few months, dragged down by a slump in the massive real estate sector.



The International Monetary Fund this week trimmed its 2023 China growth forecast to 5% from 5.2%, while maintaining a global growth forecast of 3% for the year. The world economy grew by 3.5% last year.



China is set to report September retail sales on Oct. 18, along with third-quarter GDP figures.



Amid rising tensions with the U.S. and Europe in the last few years, China has sought to boost its trade with regional partners in Southeast Asia, as well as countries participating in the Belt and Road Initiative. The BRI is a China-led push for developing regional infrastructure such as ports and railways.



As of the end of September, China said it has trains running to 217 cities in 25 European countries.



Cargo transported along those rail lines accounted for 8% of China-EU trade in 2022, up from 1.5% in 2016, Chinese officials said this week.



China also claimed imports and exports with Belt and Road partner countries reached $19.1 trillion between 2013 and 2022 — for an average annual growth in trade of 6.4%.



The third Belt and Road forum is scheduled to be held in Beijing Tuesday and Wednesday. Russian President Vladimir Putin is expected to attend.

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China’s exports and imports drop again in September

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331-820x462.jpeg" alt="" class="wp-image-428157" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107296969-1694088895591-gettyimages-1664577879-_dsc7331.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person goes through a note pad while shopping for items at a Costco Wholesale store on September 6, 2023 in Colchester, Vermont.  Robert Nickelsberg | Getty Images</figcaption></figure>



Prices that consumers pay for a wide variety of goods and services increased at a slightly faster-than-expected pace in September, keeping inflation in the spotlight for policymakers.



The consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared with respective Dow Jones estimates of 0.3% and 3.6%. Headline inflation increased 0.6% in August.



Excluding volatile food and energy prices, the so-called core CPI increased 0.3% on the month and 4.1% on a 12-month basis, both exactly in line with expectations. Policymakers place more weight on the core numbers as they tend to be better predictors of long-term trends. Core inflation also increased 0.3% in August, when it was up 4.3% from the previous 12 months.



In keeping with recent trends, shelter costs were the main factor in the inflation increase. The index for shelter, which makes up about one-third of the CPI weighting, accelerated 0.6% for the month and 7.2% from a year ago. On a monthly basis, shelter accounted for more than half the rise in the CPI, the Labor Department said.



Energy costs rose 1.5%, including a 2.1% pickup in gasoline prices and 8.5% in fuel oil, and food was up 0.2% for the third month in a row. On a 12-month basis, food costs climbed 3.7%, including a 6% increase for food away from home, while energy costs were off 0.5%.



Services prices, considered a key for the longer-run direction for inflation, also posted a 0.6% gain excluding energy services, and were up 5.7% on a 12-month basis. Vehicle prices were mixed, with new vehicles up 0.3% and used down 2.5%. Used vehicle prices, a big driver of inflation in the early days of the Covid pandemic, were down 8% from a year ago.



Among the major CPI components, the other main decliners were apparel (-0.8%) and medical care commodities (-0.3%). Medical care services increased 0.3% on the month but were down 2.6% on an annual basis.



Markets showed only a modest reaction to the report. Stocks edged higher at the open, while Treasury yields came off previous lows, with longer-duration notes little changed.



The CPI increase meant worker wages fell in real terms.



Real average hourly earnings dropped 0.2% on the month, owing to the difference between the inflation rate and the 0.2% gain in nominal earnings, the Labor Department said in a separate report. On a yearly basis, earnings were up 0.5%.



“Just because the rate of inflation is stable for now doesn’t mean its weight isn’t increasing every month on family budgets,” said Robert Frick, corporate economist with Navy Federal Credit Union. “That shelter and food costs rose particularly is especially painful.”



In other economic news Thursday, the Labor Department reported that initial jobless claims totaled 209,000, unchanged from the previous week and just below the 210,000 estimate.



The CPI report comes with Federal Reserve officials contemplating their next policy moves.



Minutes from the Fed’s September meeting, released Wednesday, reflected divisions within the rate-setting Federal Open Market Committee. The meeting concluded with the committee opting not to raise interest rates, but the summary showed lingering concern about inflation and worries that upside risks remain.



Since then, however, Treasury yields have jumped, at one point hitting 16-year highs.



Multiple Fed officials have said that the increases could negate the need for further policy tightening, and markets now are pricing only a small chance that the central bank votes to hike before the end of the year. Market pricing further indicates that the Fed will shave about 0.75 percentage point off its key borrowing rate before the end of 2024.



Recent days, though, have brought mixed news on where inflation is heading.



The Labor Department said Wednesday that prices at the wholesale level increased 0.5% in September, pushing the 12-month rate to 2.2%, the highest since April and above the Fed’s goal of 2% inflation.



Correction: The Labor Department said Wednesday that prices at the wholesale level increased 0.5% in September. An earlier version misstated the day.

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U.S. consumer prices rose 0.4% in September, more than expected

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-820x540.jpg" alt="" class="wp-image-426244" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President Ajay Banga looks on after his visit to Vidya Samiksha Kendra at Gandhinagar, India, July 16, 2023. REUTERS/Amit Dave/</figcaption></figure>



MARRAKECH, Morocco, Oct 9 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga will come under pressure this week to focus on climate change, but the former Mastercard CEO first needs to get shareholders in line on how to grow the bank.



Banga, just 130 days into the job, has a mandate to broaden the multilateral development lender&#8217;s mission to tackle global crises including climate change, pandemics and fragile states.



But with annual climate transition finance needs estimated at up to $3 trillion for emerging market and low-income economies by 2030, development advocates are calling on him to make tackling global warming the priority at his first World Bank and International Monetary Fund (IMF) annual meetings.



A G20-commissioned panel of experts recommended in July that the World Bank and other multilateral development banks (MDBs) increase annual lending by $260 billion, more than three times their current pace, to help meet climate needs.



&#8220;We&#8217;d love to shareholders see come out with a strong endorsement of that target and a plan to push that forward,&#8221; said Amy Dodd, development policy director at ONE Campaign.



Banga, however, has said the major step from the meetings in Morocco will be the long-awaited shareholder endorsement of modifying the bank&#8217;s anti-poverty mission statement.



The move to add &#8220;on a livable planet&#8221; has been in process for a year, and the development community is eager for next steps to maintain momentum and scale up financing quickly.



The World Bank in April lowered its equity-to-loan ratio to boost lending by $50 billion over 10 years. But many further steps are more complicated and need countries to decide how much taxpayer funds they are willing to contribute or put at risk.



&#8220;I&#8217;m very skeptical that there&#8217;s going to be a big step forward on the size of the institution in Marrakech,&#8221; said Clemence Landers, a former U.S. Treasury official now with the Center for Global Development in Washington.



This group on Monday published a new scorecard for MDB reforms, saying that broad changes are &#8220;firmly in play&#8221; but progress in implementing them has been limited.



<h2 class="wp-block-heading" id="h-complex-moves">COMPLEX MOVES</h2>



For now, the U.S. wants countries to back loan guarantees by the World Bank, with President Joe Biden pushing a request that Congress approve $2.1 billion in new funding that could unlock $25 billion in new concessional loans over a decade.



A World Bank report to be considered in Marrakech estimates that $10 billion in guarantee commitments could boost lending by $60 billion over that period.



But no other major shareholders have joined the U.S. move, which is viewed as a more palatable alternative for U.S. lawmakers to a general capital increase as this would likely lead to a bigger Chinese shareholding at the bank.



British officials have expressed support for a capital increase, but Germany has favored more issuance of hybrid capital, a debt-like instrument, that the World Bank estimates could add another $40 billion in new lending over a decade.



A bigger move would boost lending against the World Bank&#8217;s &#8220;callable capital,&#8221; a cushion of emergency funds pledged by shareholders but not paid-in, but this would require some countries to change laws.



Banga has said the move is complex and will take time to negotiate. But the payoff could be huge, with the Rockefeller Foundation estimating a lending increase of some $900 billion over a decade if ratings agencies modified their evaluations.



A U.S. Treasury official told Reuters that the department is working to develop rules for callable capital so that decisions could be made by April 2024.



<h2 class="wp-block-heading" id="h-plumbing">PLUMBING</h2>



Banga has played down the lending increases and emphasized his efforts to make the 16,000-strong organization more nimble and focused on projects with measurable impacts, saying he wants &#8220;to fix the plumbing&#8221;.



Other World Bank presidents, including Jim Yong Kim, were unable to meaningfully reform the bank, which Banga has called &#8220;dysfunctional&#8221;, despite a talented and dedicated staff.



&#8220;He is shaking things up,&#8221; said a senior official at the U.S. Treasury, which nominated him for the job.



While the Indian born American citizen&#8217;s approach has caused some internal friction, according to bank staff, Banga, 63, has received high marks for pushing the envelope.



&#8220;Banga had a good start,&#8221; said Michael Krake, who represents Germany on the World Bank&#8217;s executive board.



&#8220;Let Banga be Banga. Good leaders take thoughtful risks and also make some mistakes,&#8221; Krake added.



(Reporting by David Lawder; Editing by Alexander Smith)

World Bank chief Banga unveils new plans to boost lending ‘firepower’

World Bank’s Banga faces pressure on resources, shareholder schisms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg" alt="" class="wp-image-416649" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IMF managing director Kristalina Georgieva speaks during a panel discussion at the COP26 UN Climate Summit in Glasgow on November 3, 2021. (Photo by Daniel LEAL / AFP) (Photo by DANIEL LEAL/AFP via Getty Images)</figcaption></figure>



Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Stronger demand for services and progress on lowering inflation have increased the chances that the global economy can escape recession, but fiscal and financial risks abound, IMF chief Kristalina Georgieva said on Thursday.



Georgieva, setting the stage for next week&#8217;s annual meetings of the International Monetary Fund and World Bank, said successive shocks since 2020 had slashed $3.7 trillion from global output, current growth remained well below pre-pandemic levels, and medium-term growth prospects had weakened further.



Stubborn inflation meant interest rates would have to remain &#8220;higher for longer&#8221; and economic fragmentation threatened to hit emerging and developing economies hardest, she said.



In remarks prepared for a speech in Abidjan, Ivory Coast, Georgieva said the IMF&#8217;s new World Economic Outlook, coming out on Tuesday, would show a slow and uneven recovery, with stark differences emerging in trends across the globe.



&#8220;The world economy has shown remarkable resilience, and the first half of 2023 has brought some good news, largely because of stronger-than-expected demand for services and tangible progress in the fight against inflation,&#8221; Georgieva said in the prepared remarks. &#8220;This increases the chances for a soft landing for the global economy. But we can’t let our guard down.&#8221;



Georgieva said the current pace of growth was &#8220;quite weak,&#8221; well below the 3.8% pre-pandemic average, and inflation would likely remain above target in some countries until 2025.



&#8220;Fighting inflation is the No. 1 priority,&#8221; Georgieva said, noting that high prices undermined consumer and investor confidence, and hit the poorest people in society hardest.



&#8220;Winning the fight against inflation requires interest rates to remain higher for longer,&#8221; she said. &#8220;It is paramount to avoid a premature easing of policy, given the risk of resurging inflation.&#8221;



Georgieva said expectations of a “soft landing” had helped boost various asset prices, but a rapid resurgence of inflation could lead to a sharp tightening of financial conditions.



The IMF chief&#8217;s somber message comes days before finance ministers and central bankers from 190 countries gather in Marrakech for a week of meetings about the risks facing the global economy.



The meetings are the first on the African continent since they were held in Nairobi, Kenya in 1973, and they will take place not far from the epicenter of a devastating earthquake in Morocco that killed 2,900 people.



Georgieva underscored stark differences in growth dynamics, noting that the United States is the only major economy that had seen output return to pre-pandemic levels, and calling out India and Ivory Coast as other bright spots.



But most advanced economies are slowing and economic activity in China, the world&#8217;s second-largest economy, remains below expectations, she said, with many other countries struggling with &#8220;anemic growth.&#8221;



Economic fragmentation &#8211; marked by protectionism, export controls and a retreat from global trade &#8211; threatened to further undermine growth prospects, especially for emerging and developing economies, she said.



Many countries also faced significant fiscal risks and urgently needed to rebuild their buffers, with Africa and other regions seeing a further rise in debt burdens.



She said banks were also facing pressures and called for urgent steps to strengthen the global financial safety net. IMF analysis showed that 100 emerging and low-income countries &#8211; including most African nations &#8211; lacked sufficient resources and access to swap lines, leaving them exposed in the event of a financial crisis, she said.



The IMF, which has provided about $320 billion in financing to 96 countries since the pandemic, also needed to bolster its lending capacity, Georgieva said, urging member countries to act to increase its quota resources.



She also called for the fund&#8217;s stronger members to step in with more financing for the Poverty Reduction and Growth Trust, which serves the poorest members, as well as its new $40 billion Resilience and Sustainability Trust, which provides longer-term financing for climate reforms.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

BRITAIN-UN-CLIMATE-COP26

IMF chief Georgieva: soft landing possible, but fiscal, debt risks abound

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-820x462.jpeg" alt="" class="wp-image-427904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Britain’s Prime Minister Rishi Sunak listens to a speaker address delegates at the annual Conservative Party Conference in Manchester, northern England, on October 2, 2023. Oli Scarff | Afp | Getty Images</figcaption></figure>



MANCHESTER, ENGLAND — U.K. Prime Minster Rishi Sunak appears a leader on rocky ground as growing disunity from within his Conservative government is giving rise to more radical factions, even as the party gears up for a General Election next year.



The discord Sunak sought to assuage when he assumed leadership of the party last year following a series of Tory psychodramas has resurfaced this week as ministers assembled in Manchester, England, for the annual Conservative Party Conference.



Members of Parliament (MPs), including Liz Truss, Britain’s shortest-serving prime minister, voiced their disapproval of Sunak’s leadership — or perceived lack thereof — while faction leaders have urged donors to defund the party until major reforms are made.



The rebellion comes as the Tories face stiff competition from the opposition Labour Party, which continues to lead in opinion polls, and party pushback promises to dominate Sunak’s leadership in the lead up to the election, likely due this time next year.



<h2 class="wp-block-heading" id="h-truss-leads-the-rebellion"><a></a>Truss leads the rebellion</h2>



Truss, the Ronald Reagan enthusiast who lasted just 44 days in office, stole the show as the conference got underway in earnest Monday, attracting a crowd of hundreds as she admonished Sunak’s policies and again made the case for immediate tax cuts.



The ex-prime minister, whose low-tax agenda led to the implosion of her government last year, retains significant support among party faithfuls — many of whom voted her into power — and at least 60 MPs have now joined her Conservative Growth Group.



The MPs backing Truss’ vision to “make Britain grow again” account for less than a fifth of total elected Conservative MPs, but their number is roughly equivalent to Sunak’s parliamentary majority, posing potential risks to the prime minister’s ability to govern.



Among the rebel members is former Home Secretary Priti Patel, who on Sunday said her party was “at a crossroads,” adding that it was Sunak who had “undermined [the Conservatives’] ability to govern.”



Patel was speaking at a gala dinner hosted by the Conservative Democratic Organisation — a faction closely aligned with former Prime Minister Boris Johnson — whose founder, Lord Peter Cruddas, used the event to urge members to cut donations to the Conservative Party until it undergoes reform.



“I’ve had enough of this,” Lord Cruddas said, adding that members “should not blindly support a Conservative Party that no longer represents our values,” and is “headed for electoral disaster.”



The CDO considers the effective ousting of Truss and Johnson, and the later default installation of Sunak, as anti-democratic and against the will of the party membership.



Brexit proponent Nigel Farage, former leader of the populist, right-wing U.K. Independence Party (UKIP), was also in attendance and later said that a wing of the Conservative Party is “very much coming in [his] direction.”



“That’s what the great battle’s going to be after they lose the next General Election: which wing of the party wins,” Farage said of the Conservatives in a Tuesday interview with the News Agents podcast.



<h2 class="wp-block-heading"><a></a>A struggling Conservative brand</h2>



The rising discord from within the party is also reflected in public sentiment, with many Britons expressing their dissatisfaction with the Tories’ 13-year stronghold.



Recent opinion polls show Labour with a 20-point lead over the Conservatives, only a slight narrowing from July.



“The Conservative brand is struggling,” Gideon Skinner, head of politics research in public affairs at market research firm IPSOS, said Monday. “Two-thirds [of voters] think it’s time for a change, and that’s the real struggle that the Conservative Party has to turn around.”



According to IPSOS’s latest data, almost two-thirds (61%) of voters see the Conservatives as out of date, while just one-fifth (21%) see them as fit to govern. Nearly three-quarters (73%), meanwhile, see Sunak, Britain’s richest prime minister in modern history, as out of touch.



It comes as Britain struggles with still high inflation and falling living standards, which have led to ongoing industrial action over working conditions and pay.



Thousands of medical professionals marched outside of the conference Tuesday, demanding fairer wages, while the latest strikes by train workers on Wednesday will disrupt travel for the second time this week.



“There’s this bleak public mood which is combined with the worsening public brand of the Conservatives, all leading to this sense that it’s time for a change,” Skinner said.



Later Wednesday, Sunak is expected to use his headline speech at the close of the conference to reassert his authority and outline a number of new policies that he hopes will help him win support from both the electorate and his own party.

107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K

UK PM Rishi Sunak’s leadership on rocky ground as party rebellion mounts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-820x543.jpeg" alt="" class="wp-image-427846" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-820x543.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-300x199.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-136x90.jpeg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-768x509.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-1536x1017.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An urban view of high-rise buildings at dusk as seen from Hong Kong’s Victoria Peak on July 23, 2023 in Hong Kong, China. Future Publishing | Future Publishing | Getty Images</figcaption></figure>



The World Bank trimmed its growth forecast for developing East Asia and Pacific, citing a sluggish China and global demand amid still-high interest rates and dampened trade.



The World Bank said it now expects developing economies in East Asia and the Pacific to grow 5% in 2023, according to its October report published Monday in Asia. That’s slightly less than the 5.1% it had forecast in April. For 2024, the Washington-based multilateral bank now expects 4.5% growth for the region, down from its forecast of 4.8% in April.



The World Bank left its 2023 economic growth forecast for China unchanged at 5.1%, but lowered its 2024 estimate to 4.4% from 4.8% previously. The organization cited “longer-term structural factors,” elevated debt levels in the world’s second-largest economy and weakness in its property sector as reasons for its downgrade.



“While domestic factors are likely to be the dominant influence on growth in China, external factors will have a stronger influence on growth in much of the rest of the region,” the World Bank said.



Even though East Asian economies have mostly recovered from the series of shocks since 2020 — including the Covid-19 pandemic — and will continue to grow, the World Bank said the pace of growth will likely slow.



<h2 class="wp-block-heading" id="h-growing-debt-levels"><a></a>Growing debt levels</h2>



The World Bank flagged the significant increase of general government debt, as well as the rapid jump in corporate debt levels, particularly in China, Thailand and Vietnam.



It warned that high government debt levels can limit both public and private investment. Elevated debt could lead to higher interest rates, which would increase the cost of borrowing for private businesses, it said.



According to the World Bank’s calculations, a 10-percentage-point increase in general government debt to GDP is associated with a 1.2&nbsp;percentage point decline in investment growth. Similarly, a 10-percentage-point increase in private debt to GDP is associated with a 1.1&nbsp;percentage point decline in investment growth, it said.



The bank also noted relatively high levels of household debt in China, Malaysia and Thailand compared to other emerging markets. High household debt can have a negative impact on consumption, since more income would be used to service debts, which could lead to cuts in spending.



A 10-percentage-point increase in household debt would decrease consumption growth by 0.4 percentage point, the World Bank said.



As it stands, the World Bank said household spending is still below pre-pandemic trends in the developing East Asia and Pacific region.



In China, the current trend of retail sales is flatter than before the pandemic due to falling house prices, weaker household income growth, increased precautionary savings and household debt as well as other structural factors, such as an aging population.

107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="577" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-820x577.jpg" alt="" class="wp-image-427791" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-820x577.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-1536x1081.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/iron-ore-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A miner holds a lump of iron ore at a mine located in the Pilbara region of Western Australia December 2, 2013. REUTERS/David Gray/File Photo/File Photo</figcaption></figure>



LAUNCESTON, Australia, Sept 29 (Reuters)&nbsp;&#8211;&nbsp;Iron ore heads into a week-long Chinese holiday hiatus with prices elevated and mixed signals as to the strength of demand in the world&#8217;s largest importer of the steel-making raw material.



Iron ore futures traded in Singapore&nbsp;SZZFc1&nbsp;ended at $120.77 a metric ton on Thursday, up slightly from the prior close of $120.67.



The price has eased slightly from the recent peak of $123.37 a metric ton on Sept. 15, but remains 17% above the low of $103.21 hit on Aug. 3.



The price action has been mirrored in domestic contracts traded on the Dalian Commodity Exchange&nbsp;DCIOcv1, which ended at 851.5 yuan ($116.64) a metric ton on Thursday, up slightly from the previous close of 844.5 yuan.



Dalian futures are down from the Sept. 15 peak of 873 per metric ton, but up 18.6% from the recent low of 718 yuan on Aug. 9.



The recent rally has been driven by the fundamentals of strong imports and lower port inventories, as well as a lift in sentiment from some signs of recovery in the key housing sector, such as rising new bank loans.



Countering the optimism is a likely easing of imports in September, the possibility of official action to limit steel production in the fourth quarter and the ongoing woes of some property developers.



China Evergrande Group&nbsp;3333.HK&nbsp;is facing action by offshore creditors to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3B21QY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">liquidate</a>&nbsp;the cash-strapped major property developer, which is trying to restructure offshore debt worth $31.7 billion.



The concerns in the residential property sector threatens to cast a pall over China&#8217;s economic recovery, and over the iron ore and steel sectors given that it accounts for about a third of domestic steel demand.



IMPORTS MODERATE



It&#8217;s also likely that China&#8217;s imports of iron ore will have taken a breather in September after a robust outcome in August.



Imports are likely to be around 96.6 million metric tons in September, according to commodity analysts Kpler, while LSEG data is estimating arrivals of 96.4 million.



This would be down from the customs figure of 106.42 million metric tons in August, which was the highest so far in 2023 and the most since October 2020.



It&#8217;s also worth noting that imports have a strong track record of being lower in October than in September, given the influence of China&#8217;s annual week-long National Day holidays.



Imports in October were lower than in September in every year going back to 1999, according to official customs data.



The X-factor for China&#8217;s iron ore imports and steel production in the next few months is what will officials tell steelmakers.



If the authorities in Beijing aim to ensure steel output in 2023 is no higher than that in 2022, it implies production will have to be lower in the last four months of the year than it was in the first eight.



Crude steel output was 712.9 million metric tons in the first eight months of the year, according to official data, giving a monthly average of 89.1 million.



Total production in 2022 was 1.01 billion metric tons, meaning that in order to keep this year&#8217;s output to the same level, a total of 297.1 million can be made in the last four months.



This equates to 74.3 million metric tons a month for the September to December period, a sharp reduction in the monthly average output so far this year.



However, there is no guarantee that Beijing will enforce a cap on steel output, as the authorities may decide to allow production to continue at high levels in order to boost economic growth and allow for increased exports of steel products.



On the positive side for iron ore sentiment is the weak state of port inventories, with data from consultants SteelHome&nbsp;SH-TOT-IRONINV&nbsp;showing these dropped to 110.65 million metric tons in the week to Sept. 22, the lowest since July 2020 and below the 137.8 million from the same week in 2022.



This implies that there is scope for imports to rise in order to replenish inventories, although the current high prices may be deterring traders from arranging cargoes.



Overall, there are more factors likely to weigh on iron ore prices than provide support, with the key variable being what will happen to China&#8217;s steel production in the fourth quarter.



The opinions expressed here are those of the author, a columnist for Reuters.



GRAPHIC-China iron ore imports vs SGX price: <a href="https://tmsnrt.rs/3RCeUOo" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3RCeUOo</a>



(Editing by Miral Fahmy)

FILE PHOTO: A miner holds a lump of iron ore at a mine located in the Pilbara region of Western Australia

COLUMN-Iron ore prices head into China holidays facing downside risks: Russell

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg" alt="" class="wp-image-427512" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">In an aerial view, oil storage tanks are shown at the Enterprise Sealy Station on August 28, 2023 in Sealy, Texas.
Brandon Bell | Getty Images News | Getty Images</figcaption></figure>



Oil prices surged to their highest level in over a year during Asian trading hours, after crude stocks at a key storage hub fell to their lowest since July last year.



Crude inventories in Cushing, Oklahoma fell to 22 million barrels in the fourth week of September — hovering close to the operational minimum, according to data from the U.S. Energy Information Administration (EIA). That’s a drop of 943,000 barrels compared to the prior week.



The U.S. West Texas Intermediate futures touched $95.03 per barrel during Asia trading hours, marking the highest since August 2022. It was last trading at $94.61 per barrel. Global benchmark Brent rose 1.05% to $97.56 a barrel.



“Today’s price action seems to be Cushing driven, as it reaches a 22 million bbl low, the lowest level since July 2022,” Bart Melek, managing director of TD Securities, told CNBC.



If the inventories continue to dip below those levels, it’s going to be “rough” getting crude out into the market, Melek said on CNBC’s “Street Signs Asia.”



He forecasts that oil prices will continue to remain at “high level” for the rest of the year, with an upside risk if global oil cartel OPEC+ continues to keep supplies tight.



<h2 class="wp-block-heading" id="h-robust-deficit-in-sights"><a></a>‘Robust deficit’ in sights</h2>



The global oil markets are looking at a “pretty robust deficit” on top of an already significant shortfall this quarter, Malek said, citing the oil production cuts implemented by OPEC and its allies.



In September, OPEC+ kingpin Saudi Arabia&nbsp;<a href="https://www.cnbc.com/2023/09/05/saudi-arabia-to-extend-voluntary-cut-of-1-million-barrels-per-day-until-the-end-of-the-year.html">extended its 1 million barrel per day voluntary crude oil production cut</a>&nbsp;until the end of the year. It brings Saudi’s crude output to near 9 million barrels per day.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.
<cite>Bart Melek MANAGING DIRECTOR, TD SECURITIES</cite></blockquote>



Additionally, Russia has pledged to extend its 300,000 barrels per day export reduction until the end of December.



Malek also highlighted how refinery throughputs will see a decline in the coming months as refinery maintenance season approaches. The&nbsp;<a href="https://www.lawinsider.com/dictionary/refinery-crude-throughput" target="_blank" rel="noreferrer noopener">refinery crude throughput</a>&nbsp;refers to the volume of crude oil a refinery can produce during a given period of time.



“We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.”



It will not be in OPEC’s interest if prices go a lot higher to triple digits, as they will be worried about long term demand destruction, Malek pointed out.



“We do think they will ultimately signal, as we get closer to the end of the year, that they may be very well done with these strong measures to limit supply,” he projected.



<figure class="wp-block-image"><img decoding="async" src="https://fm.cnbc.com/applications/cnbc.com/resources/styles/skin/special-reports/cnbci_promo/images/telegram_24.png" alt=""/></figure>



Get more from CNBC. Breaking news and updates on&nbsp;<a href="https://t.me/cnbci" target="_blank" rel="noreferrer noopener">Telegram</a>.



<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Forecasts</a><a href="https://www.cnbc.com/2023/09/15/oil-to-hit-100-analysts-expect-a-return-to-triple-digits-before-2024.html">&nbsp;</a><a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">for $100 per barrel oil</a>&nbsp;have been swirling on the horizon in recent days.&nbsp;<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Goldman Sachs recently raised</a>&nbsp;its 12-month Brent forecast from $93 per barrel to $100 on the back of “modestly sharper inventory draws,” the investment bank wrote in a recent note dated September 20.



“Overall, we believe that OPEC will be able to sustain Brent in an $80 to $105 range in 2024,” the Goldman report added, citing strong demand growth from the Asia region.
</blockquote>

107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar

Oil prices surge to highest level in more than a year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-820x547.jpg" alt="" class="wp-image-427728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/JSNVXDTNPVPHTDG5XVXZEEXM7U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Secretary of State Antony Blinken addresses members of the press on the sidelines of the 78th United Nations General Assembly at the Lotte Palace Hotel in New York City, U.S., September 22, 2023. REUTERS/Bing Guan/File Photo</figcaption></figure>



WASHINGTON, Sept 26 (Reuters)&nbsp;&#8211;&nbsp;The United States is pausing certain foreign assistance programs benefiting the government of Gabon following last month&#8217;s coup, U.S. Secretary of State Antony Blinken said in a statement released by the U.S. State Department on Tuesday.



<h2 class="wp-block-heading" id="h-the-take">THE TAKE</h2>



The U.S. is holding back assistance that might aid the Gabon government but continuing operational activities in the country, including diplomatic and consular operations supporting U.S. citizens.



The move is in line with steps taken by Economic Community of Central African States, the African Union, and other international partners.



<h2 class="wp-block-heading" id="h-key-quote">KEY QUOTE</h2>



&#8220;The U.S. government is pausing certain foreign assistance programs benefiting the government of Gabon while we evaluate the unconstitutional intervention by members of the country’s military,&#8221; Blinken said.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



* Army officers in Gabon seized power on Aug. 30, annulling an election minutes after an announcement that President Ali Bongo had won, which they said was not credible. Bongo had been in power since 2009.



* The junta has promised to oversee free and fair elections, but has not given a precise timetable for organising them.



* A 24-month transition to elections in Gabon would be &#8220;reasonable&#8221; after last month&#8217;s coup, junta-appointed Prime Minister Raymond Ndong Sima was quoted as saying by French news agency AFP earlier this month.



* The Bongo family&#8217;s dynastic rule in the Central African oil producer had created widespread discontent, with critics saying the Bongos did little to share Gabon&#8217;s wealth with its 2.3 million people.



* The African Union suspended Gabon&#8217;s membership following the coup.



(Reporting by Kanishka Singh in Washington; Editing by Christopher Cushing and Sonali Paul)

U.S. Secretary Antony Blinken addresses the press on sidelines of UN General Assembly

US pauses some foreign assistance programs for Gabon after coup

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-820x547.jpg" alt="" class="wp-image-427690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man uses a hammer as he stands among rubble, in the aftermath of a deadly earthquake, in Talat N&#8217;Yaaqoub, Morocco, September 16, 2023. REUTERS/Ammar Awad/File Photo</figcaption></figure>



WASHINGTON, Sept 25 (Reuters) &#8211; The Institute of International Finance said on Monday it would still hold its annual membership meeting in Marrakech on Oct. 12-14, following the World Bank and International Monetary Fund decision to stick to their own Morocco meeting plans after a devastating Sept. 8 earthquake.



The IIF, the global banking industry&#8217;s premier trade group, said its parallel meeting would bring together central bankers, policymakers and top finance executives to discuss key issues, including the global economic outlook, climate transition finance and emerging market debt.



The group said it will offer its members opportunities to support local vendors and artisans in the Marrakech community and donate to World Central Kitchen&#8217;s relief efforts in Morocco, its designated charity for the meetings.



The 6.8-magnitude earthquake centered 45 miles (72 km) from Marrakech killed more than 2,900 people and damaged nearly 60,000 homes in 2,930 villages, mostly in the High Atlas mountains, with a total population of 2.8 million people, the Moroccan government said on Friday.



Marrakech suffered some damage in its ancient Medina quarter, but more modern parts of the city, including hotels and the IMF-World Bank venue, are intact. The IMF, World Bank and IIF meetings are jointly expected to bring more than 10,000 people to Marrakech.



IIF President and CEO Tim Adams said in a statement that the meetings in Marrakech come &#8220;at a time when our mission of fostering financial stability and sustainable growth is more critical than ever.&#8221;



&#8220;The global financial industry is the engine of economic growth and resilience. And this year, our mission takes on an added layer of significance following the tragic earthquake in Morocco,&#8221; Adams said.



Among policy makers on the IIF&#8217;s meeting agenda are Bank of England Governor Andrew Bailey, European Commission financial services commissioner Mairead McGuinness, European Central Bank policymaker Francois Villeroy de Galhau and Monetary Authority of Singapore Managing Director Ravi Menon. (Reporting by David Lawder Editing by Bill Berkrot)

FILE PHOTO: Aftermath of a deadly earthquake

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-820x546.jpg" alt="" class="wp-image-427585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XQD7AXQBARMS5DGKDEXUIHJQ3E-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo</figcaption></figure>



NEW YORK, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;Global debt hit a record $307 trillion in the second quarter of the year despite rising interest rates curbing bank credit, with markets such as the United States and Japan driving the rise, the Institute of International Finance (IIF) said on Tuesday.



The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade.



It said the latest increase has lifted the global debt-to-GDP ratio for a second straight quarter to 336%. Prior to 2023, the debt ratio had been declining for seven quarters.



Slower growth, alongside a deceleration in price increases, were behind the debt ratio rise, the report said.



&#8220;The sudden rise in inflation was the main factor behind the sharp decline in debt ratio over the past two years,&#8221; the IIF said, adding that with wage and price pressures moderating, even if not to their targets, they expect the debt to output ratio to surpass 337% by year-end.



More than 80% of the latest debt build up had come from the developed world with the U.S., Japan, Britain and France registering the largest increases. Among emerging markets, the biggest rises came from the largest economies, namely China, India, and Brazil.



&#8220;As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase,&#8221; the IIF said.



The report found that household debt-to-GDP in emerging markets was still above pre-COVID-19 levels, largely due to China, Korea and Thailand. However, the same ratio in mature markets has dropped to its lowest level in two decades in the first six months of the year.



&#8220;Should inflationary pressures persist in mature markets, the health of household balance sheets, particularly in the U.S., would provide a cushion..against further rate hikes,&#8221; it said.



Markets are not pricing in a U.S. Federal Reserve rate hike in the near future, but the target rate of between 5.25% and 5.5% is currently expected to remain in place until at least May of next year, according to the CME FedWatch tool.



Rates are expected to remain high for a long period in the United States, which could pressure emerging markets as needed investment is funnelled to the less-risky developed world.



The Fed is expected to leave rates unchanged at the end of its meeting on Wednesday, but could signal that it is open to further rate hikes.



(Reporting by Rodrigo Campos, editing by Karin Strohecker and Alexander Smith)

FILE PHOTO: FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration

Global debt hits record $307 trillion, debt ratios climb -IIF

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4-820x462.jpeg" alt="" class="wp-image-427581" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Defense Secretary Lloyd Austin (L) and U.S. Homeland Security Secretary Alejandro Mayorkas (R) look on as President Joe Biden speaks about the government response and recovery efforts in Maui, Hawaii, and the ongoing response on Hurricane Idalia, in the Roosevelt Room of the White House in Washington, D.C., Aug. 30, 2023. Saul Loeb | AFP | Getty Images</figcaption></figure>



President Joe Biden will address the United Nations General Assembly on Tuesday, where he plans to promote democracy and advocate for increased support for Ukraine.



For Biden, it’s another opportunity to advance the ideas of diplomacy and democracy against those of aggressive autocracies, as he did at the recent Group of 20 summit earlier this month.



″[Biden] will lay out for the world the steps that he and his administration have taken to advance a vision of American leadership that is built on the premise of working with others to solve the world’s most pressing problems,” White House national security adviser Jake Sullivan said in a briefing Friday.



<h2 class="wp-block-heading" id="h-biden-s-meetings-speech"><a></a>Biden’s meetings, speech</h2>



Leaders from at least 145 countries are slated to attend with a few notable exceptions: France, the United Kingdom, China and Russia will all be absent, meaning four of the five countries that hold permanent seats on the U.N. Security Council will not be in attendance.



The absence of China and Russia gives Biden an opening to advance ties between the United States and smaller, developing nations.



Biden is slated to meet Wednesday with President Luiz Inácio Lula da Silva of Brazil, a key leader in the Global South who has also been a proponent of peace talks between Russia and Ukraine. Lula has argued the U.S. and other Western nations are prolonging the war with their defense support.



The president will also meet with the leaders of the five central Asian nations of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, marking the first time a U.S. president has done so jointly. He will also meet with Israeli Prime Minister Benjamin Netanyahu, the  first time the pair have met since the prime minister won reelection last fall.



This will be the first time Ukrainian President Volodymyr Zelenskyy has attended the U.N. summit in person since the war began in February 2022. He gave a prerecorded speech to the body at last year’s session.



“President Biden looks forward to hearing President Zelenskyy’s perspective on all of this and to reaffirm for the world and for the United States, for the American people, his commitment to continuing to lead the world in supporting Ukraine,” Sullivan said.



A “substantial section” of Biden’s speech will be devoted to the war in Ukraine, Sullivan said.



“He will talk about the fundamental fact that the United Nations Charter &#8230; speaks to the basic proposition that countries cannot attack their neighbors and steal their territory by force,” Sullivan said, referring to Russia’s invasion of Ukraine. “That was also a proposition that was at the core of the G20 statement last weekend.”



<h2 class="wp-block-heading"><a></a>U.S. support for Ukraine</h2>



Biden’s message of support for Ukraine is complicated by the fact that a handful of hard-line Republicans in Congress are actively opposing more funding.



The White House is seeking $24 billion in additional aid to Ukraine, which it hoped would be passed alongside a continuing resolution to keep the government open while budget negotiations continue. The measure has bipartisan support in the Senate but is held up in the House of Representatives, where some members, like Rep. Marjorie Taylor Greene, R-Ga., have said they will not support any additional aid.



GOP House Speaker Kevin McCarthy is in a precarious position on the issue of Ukraine as his slim majority places him at the whims of every member of his caucus. Conservatives balked at McCarthy’s proposal last week to pair Ukraine aid with additional border funding.



Zelenskyy will travel to Washington, D.C., on Thursday to meet with Biden at the White House and speak with lawmakers. Unlike his visit in December, Zelenskyy will not address a joint session of Congress. Rep. Mike Turner, R-Ohio, the chair of the House intelligence committee, said Zelenskyy will be “very, very persuasive.”



“Zelenskyy is a great spokesperson,” Turner said on CBS News on Sunday. “He really makes the case better than anyone.”



It’s a position the White House agrees with.



“He has proven over the course of the past 18, 19 months, that there is no better advocate for his country, for his people, and for the urgent and continuing need for countries like the United States and our allies and partners to step up to provide the necessary tools and resources that Ukraine needs,” Sullivan said.

107294106-1693425707245-gettyimages-1634692350-AFP_33U32J4

Biden to push for Ukraine aid, democracy as China and Russia skip UN General Assembly

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="578" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-820x578.jpg" alt="" class="wp-image-427566" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-820x578.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-768x542.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-1536x1084.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Countries-should-mull-slavery-reparations-despite-complex-legal-claims-UN-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Internally displaced Somali children gather outside their makeshift shelters at the Ladan camp for internally displaced people (IDP) in Dollow, Somalia May 1, 2023. REUTERS/Ayenat Mersie/File Photo</figcaption></figure>



GENEVA, Sept 19 (Reuters) &#8211; The United Nations said on Tuesday countries could consider financial reparations among the measures to compensate for the enslavement of people of African descent, though legal claims are complicated by the time passed and the difficulty in identifying perpetrators and victims.



A report of UN Secretary-General Antonio Guterres said no country had comprehensively accounted for the past and addressed the contemporary legacy of the violent uprooting of an estimated 25 million to 30 million people from Africa over more than 400 years.



&#8220;Under international human rights law, compensation for any economically assessable damage, as appropriate and proportional to the gravity of the violation and the circumstances of each case, may also constitute a form of reparations,&#8221; the report said.



&#8220;In the context of historical wrongs and harms suffered as a result of colonialism and enslavement, the assessment of the economic damage can be extremely difficult owing to the length of time passed and the difficulty of identifying the perpetrators and victims.&#8221;



The report stressed, however, that the difficulty in making a legal claim to compensation &#8220;cannot be the basis for nullifying the existence of underlying legal obligations&#8221;.



The notion of paying reparations or making other amends for slavery has a long history but the movement has recently gained momentum worldwide amid growing demands from African and Caribbean countries.



The EU said in July that Europe&#8217;s slave-trading past inflicted &#8220;untold suffering&#8221; on millions of people and hinted at the need for reparations for what it described as a &#8220;crime against humanity&#8221;.



The report concluded that states should consider a &#8220;plurality of measures&#8221; to address the legacies of enslavement and colonialism, including pursuing justice and reparations, and contributing to reconciliation. (Reporting by Gabrielle Tétrault-Farber; Editing by Richard Chang)

FILE PHOTO: Internally displaced Somali children gather outside their makeshift shelters at the Ladan camp in Dollow

Countries should mull slavery reparations despite complex legal claims – UN

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



WASHINGTON, Sept 18 (Reuters) &#8211; The International Monetary Fund (IMF), the World Bank and Morocco on Monday announced the annual meetings of the two global institutions would proceed in October in Marrakech, despite a recent nearby earthquake that killed more than 2,900 people.



The meeting will take place from Oct. 9-15 in Marrakech, just 45 miles (72 km) from the site of the 6.8-magnitude earthquake on Sept. 8, with some changes to adapt content &#8220;to the circumstances,&#8221; World Bank President Ajay Banga, IMF Managing Director Kristalina Georgieva and Morocco&#8217;s Economy Minister Nadia Fettah Alaoui said in a joint statement.



Senior IMF and World Bank officials made the decision, first reported by Reuters, at the direct request of the Moroccan authorities who had pressed the global institutions to proceed with the gathering which is expected to bring some 10,000-15,000 to the Moroccan tourist hub.



&#8220;As we look ahead to the meetings, it is of utmost importance that we conduct them in a way that does not hamper the relief efforts under way and that is respectful to the victims and the Moroccan people,&#8221; the three officials said.



&#8220;At this very difficult time, we believe that the Annual Meetings also provide an opportunity for the international community to stand by Morocco and its people, who have once again shown resilience in the face of tragedy. We also remain committed to ensuring the safety of all participants.”



Georgieva told Reuters on Friday that Morocco&#8217;s prime minister told her it would be &#8220;quite devastating&#8221; for Morocco&#8217;s hospitality sector if the meetings were moved to a different location. (Reporting by Andrea Shalal Editing by Chris Reese)

International

Key takeaways from the IMF-World Bank meetings

African ambassador criticizes IMF, World Bank for not giving enough loans

World Bank, multilateral development banks jointly seek to boost lending power

China’s exports and imports drop again in September

U.S. consumer prices rose 0.4% in September, more than expected

World Bank’s Banga faces pressure on resources, shareholder schisms

IMF chief Georgieva: soft landing possible, but fiscal, debt risks abound

UK PM Rishi Sunak’s leadership on rocky ground as party rebellion mounts

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

COLUMN-Iron ore prices head into China holidays facing downside risks: Russell

Oil prices surge to highest level in more than a year

US pauses some foreign assistance programs for Gabon after coup

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

Global debt hits record $307 trillion, debt ratios climb -IIF

Biden to push for Ukraine aid, democracy as China and Russia skip UN General Assembly

Countries should mull slavery reparations despite complex legal claims – UN

IMF, World Bank to proceed with annual meetings in Morocco in October

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Key takeaways from the IMF-World Bank meetings

African ambassador criticizes IMF, World Bank for not giving enough loans

World Bank, multilateral development banks jointly seek to boost lending power

China’s exports and imports drop again in September

U.S. consumer prices rose 0.4% in September, more than expected

World Bank’s Banga faces pressure on resources, shareholder schisms

IMF chief Georgieva: soft landing possible, but fiscal, debt risks abound

UK PM Rishi Sunak’s leadership on rocky ground as party rebellion mounts

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

COLUMN-Iron ore prices head into China holidays facing downside risks: Russell

Oil prices surge to highest level in more than a year

US pauses some foreign assistance programs for Gabon after coup

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

Global debt hits record $307 trillion, debt ratios climb -IIF

Biden to push for Ukraine aid, democracy as China and Russia skip UN General Assembly

Countries should mull slavery reparations despite complex legal claims – UN

IMF, World Bank to proceed with annual meetings in Morocco in October

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