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What Is the Blue Economy? – Green Queen Media



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In the fight against climate change and to support economic growth, the blue economy is perhaps the most important contender. But what is it, exactly?

As climate change is already taking its toll across the planet, coastal communities are some of the most at risk for extreme weather events and the impact of rising and warming oceans. About 40 percent of the global population lives within 100 kilometers of a coastline. But the whole world depends on our oceans remaining healthy and sustainable.

What is the Blue Economy?

According to the World Bank, the blue economy is the sustainable use of ocean resources for economic growth, as well as improved livelihoods while preserving the health of the ocean ecosystem. 


The European Commission says a blue economy is defined as “all economic activities related to oceans, seas, and coasts. It covers a wide range of interlinked established and emerging sectors.” This definition typically encompasses three key factors: contribution to oceans and economies, environmental and ecological sustainability of the oceans, and leveraging the ocean economies to support growth in both developed and developing countries. 

“When we say ‘blue economy,’ we’re talking about managing the ocean in a way that it’s healthy and continues to benefit people,” says Keith Lawrence, lead economist of Conservation International’s Center for Oceans

A Microbial Evolutionary Response to Microplastic: Learn How to Eat ItA Microbial Evolutionary Response to Microplastic: Learn How to Eat It
Courtesy SGR on Unsplash

“We used to think of the ocean as this expansive, unknowable, infinite resource that we could never fully exploit, and that we didn’t really need to manage because it’s so massive and it’s out there on its own.”

That’s all changing as nations begin to look at ways to protect the oceans while supporting communities that depend on them, which is to say all communities, even those not located near coastlines. That’s due in large part to the role oceans play in transport, carbon storage, and food. 

Why do we need the Blue Economy?

The damage to our oceans has become apparent in recent years as plastic garbage patches can now be found across the world’s oceans. The largest—the Great Pacific Garbage Patch—is twice the size of Texas, according to recent measurements. 

Plastic pollution threatens marine life and ecosystems. It also threatens the food system and the oceans’ ability to sequester carbon. Oceans currently sequester about seven to eight gigatons of Co2 per year—nearly as much as the world’s forest. But increasing acidification of the oceans makes it less efficient at carbon sequestration.

Overfishing is only adding to the problem. For decades, fish have been pulled from the oceans. Commercial fishing has put that number now in the trillions every year. For comparison, approximately 55 billion animals are raised on land for food—that’s already nearly eight times the global human population. Best estimates on fishing suggest two to three trillion fish are pulled from the oceans every year. While criticized for a number of misstated facts, the 2021 film Seaspiracy details with clarity the number of problems with the fishing industry, including its impact on the oceans as well as human rights violations, among other issues.

orcas in ocean
Photo by Bryan Goff on Unsplash

Communities heavily dependent on seafood are finding it more difficult to source fish, and the imbalance in the food system has also opened up waterways to invasive species. This puts increasing pressure on the natural ecosystems and brings new stresses to local food systems.

There are also trade-offs in value positioning and perceptions, Lawrence says.

“When we make a decision to allow deep-sea mining to happen in a place, and we make a decision somewhere else to protect a place, say for its beautiful coral reefs, we’re implicitly making those decisions that one thing is more valuable than the other,” Lawrence says. “And economics gives you a way to quantify that and to make more informed and rational decisions.”

Value also goes for the things we don’t see such as phytoplankton producing oxygen or sequestering carbon. Some estimates suggest the value of carbon captured at the bottom of the ocean is close to $30 trillion.  A single whale’s role in carbon sequestration can make it worth millions of dollars over the course of its life. “We have to agree whales are an international public good,” Ralph Chami, an assistant director of the IMF’s Institute for Capacity Development, told National Geographic in 2019.

Chami and his colleagues estimated a great whale’s worth just in carbon capture is about $2 million per whale. That puts their total population value at more than $1 trillion. 

But for most people, particularly cultures that still have spiritual connections to animals, the whale’s life is beyond a price tag.

blue deal UNblue deal UN
Photo by alexandros Giannakakis on Unsplash

The oceans are, like naturalist John Muir pointed out, intricately connected. “When we try to pick out anything by itself, we find it hitched to everything else in the Universe,” he famously said.

“Nature’s services are valuable — whether we put a monetary value on them or not,” Mahbubul Alam, research economist for Conservation International said.

“However, giving nature’s services a monetary value is a powerful way to communicate their functional worth, for example, the contribution of whale watching to a local economy. This is not to say that ‘$X’ is the value of the whale itself, but rather that whales contribute to the economy by ‘$X’ amount, thus providing an economic reason to conserve the whales.”

Promoting a Blue Economy

Last year, the National Oceanic and Atmospheric Administration (NOAA) released its Blue Economy Strategic Plan detailing how the U.S. can advance its blue economy and help enhance it on a global level.

According to NOAA, coastal economies support 2.3 million jobs and add more than $370 billion the GDP through a range of activities including tourism and recreation, shipping and transport, power generation, food, and related goods and services.

Photo by Evgeny Nelmin on Unsplash

But that’s just the U.S. The World Bank’s global ocean economy portfolio exceeded $9 billion, and includes projects covering sustainable fisheries and aquaculture, integrated coastal and marine ecosystem management, circular economy and improved solid waste management of marine plastics, sustainable coastal tourism, maritime transport, and more.

“The ocean is one of the big economic frontiers right now,” says Lawrence. “Almost all of global trade is moved by shipping. You’ve got offshore oil and gas, and deep-sea mining. As we innovate technologies, we are able to go to — and exploit — places that we weren’t able to go before. There’s enormous potential for the ocean to provide major solutions to help feed the planet and to provide clean energy and jobs.

“But if we do this thoughtlessly, we risk damaging the Earth’s largest life-support system – a system that provides for people, for animals, for ecosystems.”

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Yellen Says She’s ‘Very Optimistic’ on Economy But Wary of Rates



(Bloomberg) — Treasury Secretary Janet Yellen said a surprisingly resilient US economy has prompted investors to question what it will take to bring inflation down, but she cast doubt on whether that would force interest rates to stay elevated for a long period.

“People are trying to figure out exactly what it’s going to take to keep inflation moving down,” Yellen said Tuesday in a moderated discussion at the Fortune CEO Initiative conference in Washington. “And the economic resilience that they see maybe suggest higher for longer, but we’ll see. I think it’s by no means a given.”

Yellen also said that it’s possible that higher rates of investment spending — such as on the green-energy transition — could imply higher interest rates over the longer haul. At the same time, the structural forces that held rates down in recent decades — such as demographic trends — remain “alive and well.”

“The answer is, I don’t know,” whether bond yields will stay high over the longer run, Yellen said. “It’s a great question and it’s one that’s very much on my and the administration’s minds.”


Yellen also said that it’s critical to maintain a “sustainable fiscal policy.” She said the current level of debt is manageable — as measured by how much the US spends each year to finance the federal debt as a share of gross domestic product, and adjusted for inflation. But she also indicated that higher long-term rates could pose a threat.

“The forecast we’ve made assumes that interest rates will rise toward more normal levels, but we are seeing a pretty significant increase in nominal” rates, she said.

Yellen also said that she’s “very optimistic” about the outlook for the US economy.

Economic Outlook

“Consumer spending remains strong, investment spending is solid” and the housing market has stabilized and “seems to be moving up,” she said. “Short term inflation is coming down in the context of an extremely strong labor market,” she also said.

Yellen’s comments come just a couple of days after a last-minute deal was struck to avoid a government shutdown, something the Treasury chief had warned could threaten the economic outlook.

She said that, now, “it’s urgent that Congress allocate funds for Ukraine — that hasn’t been done. That’s really our focus.”

Yellen declined to comment on the battle for House Speaker Kevin McCarthy to retain his post.

(Updates with further comments on interest rates, starting in headline.)


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Euro zone economy likely contracted in third quarter amid waning demand, survey suggests



Eurozone business activity remained in contraction at the end of the third quarter of the year as an increased rate of loss of orders led to a further decline in activity. The overall reduction in output was again led by manufacturing, but the service sector saw activity decrease for the second month running.

Input costs continued to rise sharply, and the rate of inflation even picked up from that seen in August, in part due to higher oil prices. Output prices, however, increased at the softest pace in over two-and-a-half years amid muted pricing power.

Forward-looking indicators suggest the economic contraction is likely to persist into the fourth quarter. Future business expectations fell sharply and are now running weak by historical standards to hint at an acceleration in the rate of decline in the months ahead. Similarly, new order inflows are falling at a faster rate than output in both manufacturing and services, suggesting companies will seek to reduce capacity in the months ahead. Likewise, backlogs of work are falling at an accelerating rate to hint at production cuts across goods and services in the months ahead. In the goods-producing sector, inventory reduction remains widespread, suggesting no immediate relief to the intense destocking cycle that has exacerbated the recent downturn in customer demand.

However, as well as subduing output growth as we head into 2024, these factors should also play a role in diminishing pricing power and inflationary pressures, both in manufacturing and services.


Output fall gathers pace

The HCOB Eurozone Composite PMI Output Index, compiled by S&P Global, recorded 47.1 in September according to the flash estimate, up marginally from 46.7 in August but still signalling a solid monthly decline in business activity. Output has now fallen for four consecutive months.

The August reading is indicative of GDP falling at a quarterly rate of 0.4%, but combined with the August and July readings means GDP likely contracted by 0.3% over the third quarter as a whole.

For the second successive month, output falls were seen in both manufacturing and services. That said, the rate of contraction in services eased slightly from August and was still much softer than that seen in manufacturing. The reduction in manufacturing production was unchanged from the rapid pace seen in August. Barring a brief period of growth during the opening quarter of the year, euro area manufacturing output has decreased continuously since the middle of 2022 with recent declines being the steepest recorded since the global financial crisis.

Central to the latest reduction in business activity was a further deterioration in demand, as highlighted by a fourth successive monthly decrease in new orders. Moreover, the fall in September was the most pronounced since November 2020 and – baring pandemic months – the steepest since September 2012.

Manufacturing new orders contracted rapidly again, but the acceleration in the overall rate of decline was centred on the service sector, where the drop in new business was the sharpest since the pandemic. In fact, excluding months affected by COVID-19 restrictions, the fall in services new orders was the largest since May 2013.

The data therefore continue to signal a marked cooling of the demand revival seen in the spring for consumer-oriented services such as travel and tourism, which had boomed in early 2023 amid loosened COVID-19 containment measures compared to the prior three years. Note also that new orders continued to fall at a sharper rate than output is currently being reduced, which – in the absence of a sudden revival of demand – suggests firms will come under pressure to reducing operating capacity in the months ahead.

Job market remains largely stalled

Sharp falls in new orders meant that companies often turned to work on outstanding business in order to maintain activity levels. As such, backlogs of work decreased markedly again during September, with the latest depletion the most pronounced since June 2020. Barring pandemic months, the decline was the steepest since 2012, reflecting the steepest fall in services backlogs since 2012 and the largest falling manufacturing backlogs since the global financial crisis.

Eurozone businesses also signalled a waning of confidence in the year-ahead outlook at the end of the third quarter. Future sentiment dipped sharply to the lowest since November last year. Optimism waned across both monitored sectors, with manufacturing sentiment only just in positive territory.

The combination of spare capacity and reduced confidence in the outlook meant that companies were again cautious in their approach to hiring. Although employment rose marginally in September, the rate of job creation was the joint-second slowest in the current 32-month run of growth.

A fourth successive monthly reduction in manufacturing workforce numbers compared with a slight increase in services employment.

As well as scaling back staffing levels, manufacturers in the eurozone also cut their purchasing activity sharply and reduced their holdings of both purchases and finished goods. The fall in stocks of finished goods was the sharpest in two years.

Reduced demand for inputs meant that suppliers were able to speed up deliveries, with vendor lead times shortening for the eighth consecutive month. The rate at which deliveries quickened was marked, albeit the least pronounced since February.

Pricing power falls

There were differing trends in terms of inflation in September as a sharper rise in input costs contrasted with a weakened rate of output price inflation.

Input costs increased at the fastest pace in four months, albeit at a pace that remained well below the average seen over the past three years. Inflation was driven by the service sector, where prices were up sharply amid higher wages and rising fuel costs. Manufacturing, on the other hand, posted a seventh successive monthly drop in input costs.

Despite the steeper pace of input cost inflation, a weakening demand environment meant that companies increased their selling prices to a lesser extent than in August. In fact, the latest rise in charges was only modest and the softest since February 2021. Manufacturing output prices fell at a marked and accelerated pace, while services charge inflation eased to a 25-month low.

Measured across both sectors, the overall rate of selling price inflation has now fallen to a level consistent with consumer prices rising at a rate below 3% in early 2024, down from the 5.2% rate seen in August.

National trends

Looking at growth across the euro area, the euro area’s two largest economies – Germany and France – were the key drivers of the overall downturn in activity during September. Germany saw output decrease for the third month running and at a solid pace, albeit one that was slightly softer than seen in August. German manufacturing production declined at the fastest rate since the opening wave of the COVID-19 pandemic, while services activity was down marginally.

The contraction in France was more severe than in Germany, with activity decreasing to the largest extent since November 2020. Excluding pandemic affected months, the September contraction in output was the sharpest in over a decade. Rates of decrease quickened across both manufacturing and services.

The rest of theeurozone saw business activity remain broadly stable in September. Although manufacturing output decreased for a sixth month running, the fall was the softest since April. Meanwhile, services activity increased slightly, and to a greater extent than in August.

Access the full press release here.

Chris Williamson, Chief Business Economist, S&P Global Market Intelligence

Tel: +44 207 260 2329


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Sub-Saharan Africa Economic Growth to Slow to 2.5% in 2023, World Bank Says



JOHANNESBURG: Sub-Saharan Africa’s economic growth is expected to slow this year, dragged down by slumps in heavyweights South Africa, Nigeria and Angola, the World Bank said on Wednesday.
Regional growth will slow to 2.5% in 2023 from 3.6% last year, the bank said in a report, before rebounding to a projected 3.7% next year and 4.1% in 2025.

In per capita terms, the region has not recorded positive growth since 2015, as African countries’ economic activity has failed to keep pace with their rapid increase in population.
Some 12 million Africans are entering the labour market each year, the World Bank wrote in its twice-yearly “Africa’s Pulse” report. But current growth patterns generate just 3 million jobs in the formal sector.

“The region’s poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth,” Andrew Dabalen, the bank’s chief economist for Africa, said.
More than half of the region’s countries – 28 out of 48 – have seen their 2023 growth forecasts revised downward from the World Bank’s April estimates.
The continent’s most developed economy, South Africa, which is facing its worst energy crisis on record, is expected to grow just 0.5% this year.

Economic growth in top oil producers Nigeria and Angola is expected to slow to 2.9% and 1.3% respectively.
Sudan, which is in the midst of a major internal armed conflict that has destroyed infrastructure and brought the economy to a standstill, is expected to be hit by a 12% contraction, the Bank said.
Excluding Sudan, regional growth would be 3.1%.
“The region is projected to contract at an annual average rate per capita of 0.1% over 2015-2025, thus marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices,” the report stated.
While sub-Saharan inflation is expected to ease to 7.3% this year from 9.3% in 2022, it remains above central bank targets in most countries.
Meanwhile, recent military coups in Niger and Gabon in the wake of army takeovers in Guinea, Mali and Burkina Faso, as well as armed conflicts in Democratic Republic of Congo, Ethiopia, Somalia and Sudan, have created additional risk in Africa.
And mounting debt is draining resources, with 31% of regional revenues going to interest and loan payments in 2022.


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