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Venezuela Holds Rare Call With Bondholders as Economy Recovers – BNN

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(Bloomberg) — Venezuela’s government is making a fresh attempt to open channels with international investors, presenting potential deals in the oil and tourism sectors and talking up new economic growth data. 

Advisers, led by top economic aide Patricio Rivera, held an hour-long call on Wednesday with at least two dozen bondholders and fund managers from the U.S. and Europe, according to four people with direct knowledge of the conversation. The call was organized by the Venezuela Spain Chamber of Industry and Commerce. 

Rivera, a former Ecuadorian Finance minister who is spearheading reforms aimed at liberalizing Venezuela’s economy, briefed the investors on policy shifts and the government’s commitment to become more market friendly, the people said. He also said the government was open for investments in several sectors, from oil and minerals to tourism, the people said.  

Rivera did not respond to a request for comment. 

Venezuela has had limited contact with debt holders since it defaulted on bonds in 2017. It owes at least $60 billion plus interest on those defaulted notes. The call comes as the country breaks a seven-year recession, posting economic growth of  7.6% in the third quarter of 2021, according to preliminary data, and as it exits a four-year bout of hyperinflation. 

Despite the new outreach, Venezuela remains under U.S. economic sanctions that pose an important roadblock to American bondholders. 

©2022 Bloomberg L.P.

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P.E.I. business group sets goals to boost economy — but first it needs workers – CBC.ca

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High-speed internet for all communities on P.E.I., increased wages and support for entrepreneurs — particularly women, Indigenous people and newcomers — were part of a new ​​five-year plan announced Wednesday to boost P.E.I.’s economy.

The Partnership for Growth formed in 2019, and over the last few years received input from more than 200 businesses.

The group has created a plan for economic growth that sets specific goals it wants to see met by 2026, such as increasing the Island’s GDP, improving wages and making P.E.I. a bigger player on the global market. 

“It’s now more important than ever to take the long term view, we’re coming out of COVID-19 our focus has been very short term, now we need to look at what are our priorities to make sure that we got back on track,” said Rory Francis, interim chair for Partnership for Growth.

But first, there are short-term issues that need to be addressed, including a shortage of workers in many industries.

Premier Dennis King said it’s important to work with businesses to help attract and maintain those workers.

‘Good blueprint’

“We also have to be a leader in making sure we have the housing for those that we’re going to need to do here, the skills training, there’s just so many components to this where government can be a leader but also a follower, a supporter as well,” he said.

“Government does best when we take our leadership from others and to have a group that has come together like this across so many sectors of the economy I think this gives us a good blueprint for that.” 

The province will continue to focus on immigration and creating business incentives to improve wages, King said.

The partnership has formed a committee that will help businesses figure out how to achieve their goals.

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German economy dodges recession as war, pandemic weigh – Financial Post

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BERLIN — The German economy grew slightly in the first quarter from the previous one, data showed, with higher investments offset by the twin impacts of war in Ukraine and COVID-19 that experts predicted would weigh more heavily in the three months to June.

Europe’s largest economy grew an adjusted 0.2% quarter on quarter and 3.8% on the year, the Federal Statistics Office said on Wednesday. A Reuters poll had forecast 0.2% and 3.7%, respectively.

The reading meant that Germany skirted a recession, often defined as two quarters in a row of quarter-on-quarter contraction, after gross domestic product (GDP) fell by 0.3% at the end of 2021.

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While household and government spending remained mostly at the same level as in the previous quarter and exports were down at the start of the year, investments grew.

Construction investments, boosted by mild weather, were up 4.6% from the previous quarter, despite price increases, and machinery and equipment investments rose 2.5%.

German business morale rose unexpectedly in May as its economy showed resilience, according to an Ifo institute survey published this week that found no observable signs of a recession.

However, there is no upswing in sight either, and Sebastian Dullien, director of the Macroeconomic Policy Institute (IMK), predicted the effect of the war and pandemic-linked restrictions in China – Germany’s biggest trading partner last year, according to official data – would be much greater in the second quarter.

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ING economist Carsten Brzeski said he was sticking with his baseline scenario of a slight GDP contraction in the second quarter after Wednesday’s reading.

“The build-up of inventories and weak consumption in the first quarter, as well as very weak consumer confidence, clearly dampen the optimism that traditional leading indicators are currently conveying,” he said.

A consumer sentiment index by the GfK institute inched up slightly heading into June from an all-time low in May, with household spending burdened by inflation.

The government forecasts economic growth of 2.2% in 2022. (Reporting by Miranda Murray and Rene Wagner; Editing by Paul Carrel and John Stonestreet)

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5 reasons why the G20 needs a sustainable blue economy – World Economic Forum

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  • Ocean-based climate solutions should be a critical part of the G20’s COVID-19 recovery plans.
  • “The blue economy” can create jobs, spur economic growth, mitigate the impacts of climate change and help meet the food needs of a growing global population.
  • From sustainable fisheries to maritime renewable energies, there are five crucial areas where the G20 would benefit from investing in the ocean.

The G20 has vowed to rebuild the global economy in the aftermath of the COVID-19 pandemic and to fight climate change by investing in sustainable development. Yet one of the most powerful tools available to achieve these goals is largely missing from national economic recovery plans: ocean-based climate solutions.

The ocean has tremendous potential to spur economic growth, create jobs and mitigate some of the most severe climate impacts if we protect it and use its resources sustainably. This is often referred to as “the blue economy”.

For instance, it is estimated the world’s wetlands alone provide $47 trillion worth of ecological services annually, services such as coastal flood defences, carbon sequestration and breeding grounds for commercial fish, and support at least 1 billion jobs. But climate change, habitat destruction and plastic pollution – to name just a few problems – threaten to undermine their ecological integrity and destroy a remarkably effective buffer against some of the most severe climate change impacts.

A similar story is playing out on the ocean’s coral reefs and in our global fisheries. So-called “blue” food (food from the ocean and other aquatic sources) offers immense potential to help meet the food needs of a growing population in a way that is nutritious, sustainable, equitable and affordable. To do so successfully requires a concerted effort from the global community to ensure that fishing is sustainable.

The G20, which comprises 45% of the world’s coastline and 21% of its exclusive economic zones, has a special obligation to protect marine ecosystems and is well-positioned to deploy ocean-based climate solutions as the world continues its post-pandemic recovery.

Creating a blue economy

There are five crucial areas where the G20 would benefit from investments in ocean-based climate action to create a blue economy:

1. Maritime renewable energy sources, such as offshore wind, floating solar arrays and wave and tidal power, hold enormous promise to build energy independence and help countries meet their emissions reduction commitments under the Paris Climate Change Agreement.

2. We must decarbonize global shipping. If this industrial sector were a country, it would be the world’s eighth-largest in terms of carbon emissions. The good news is that emerging technologies can vastly reduce emissions from vessels and port facilities. The international community needs to set new standards to ensure best practices are implemented evenly around the world.

Our ocean covers 70% of the world’s surface and accounts for 80% of the planet’s biodiversity. We can’t have a healthy future without a healthy ocean – but it’s more vulnerable than ever because of climate change and pollution.

Tackling the grave threats to our ocean means working with leaders across sectors, from business to government to academia.

The World Economic Forum, in collaboration with the World Resources Institute, convenes the Friends of Ocean Action, a coalition of leaders working together to protect the seas. From a programme with the Indonesian government to cut plastic waste entering the sea to a global plan to track illegal fishing, the Friends are pushing for new solutions.

Climate change is an inextricable part of the threat to our oceans, with rising temperatures and acidification disrupting fragile ecosystems. The Forum runs a number of initiatives to support the shift to a low-carbon economy, including hosting the Alliance of CEO Climate Leaders, who have cut emissions in their companies by 9%.

Is your organization interested in working with the World Economic Forum? Find out more here.

3. Coastal wetlands and ecosystems – such as salt marshes, seagrass meadows, coral reefs and mangrove forests – need urgent protection in order to maintain their critical environmental services. It is estimated that these ecosystems sequester as much as five times the amount of carbon as terrestrial forests per unit area while shielding coastal populations from increasingly powerful storms and sea-level rise.

4. Investing in sustainable fisheries and, in particular, aquaculture will create well-paid jobs and help promote food security and economic fairness, especially in developing countries.

5. Sustainable and regenerative tourism can form a critical building block in ensuring a lasting economic recovery for coastal nations in a way that supports the ocean and nature – and the countless people who depend on them.

A 2021 report by the High Level Panel for a Sustainable Ocean Economy found that ocean-based climate and nature-based solutions such as these could collectively reduce around 4 billion tonnes of greenhouse gas emissions annually by 2030 and more than 11 billion tonnes by 2050 – equivalent to closing all the world’s coal-fired power plants for a year.

"lazy", :class=>"", :alt=>"Mangrove Conservation and Restoration: Protecting Indonesia’s “Climate Guardians”"}” use_picture=”true”>Mangrove Conservation and Restoration: Protecting Indonesia’s “Climate Guardians”

As the G20 president, Indonesia must work to restore mangroves and wetlands

Image: World Bank

Even modest investments in these solutions to create a sustainable blue economy would go a long way toward achieving UN Sustainable Development Goal 14 (life below water), including gender equity and fair access to the economic benefits of the world’s marine resources.

As this year’s G20 president and host of the group’s next leaders’ summit in November, Indonesia must lead by example, making major investments in marine and coastal ecosystem governance, promoting equal economic access, reducing marine debris, and working to restore and conserve mangrove and other wetlands.

Indonesia, Australia and all other G20 countries must expand these efforts and increase collaboration, to further strengthen and implement a robust and sustainable global blue economy that benefits everyone.

General (Ret.) Luhut Binsar Pandjaitan is Coordinating Minister for Maritime Affairs and Investment for Indonesia, which is this year’s G20 President and host of the group’s 17th Heads of State and Government Summit in November.

Dr Andrew Forrest AO is Founder and Chair of the Minderoo Foundation, Australia, and a Member of Friends of Ocean Action at the World Economic Forum.

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