Business

AMMAN — The Consumer Price Index (CPI), a measure of inflation, went up to 110.29 points in the first five months of 2024, compared with 108.50 in the same period of 2023, marking an increase of 1.65 per cent, the Department of Statistics (DoS) announced on Tuesday.

In its monthly bulletin, the DoS noted that the personal belongings sub-group was responsible for 8 per cent of the index increase, water and sanitation contributing 7.34 per cent, unions by 5.86 per cent, tobacco and cigarettes by 4.24 per cent, and rents by 4.12 per cent, the Jordan News Agency, Petra, reported.

In May, the inflation rose to 110.58 points, compared with 108.62 points for the same month in 2023, recording an increase of 1.81 per cent.

The department also noted that the personal belongings sub-group was responsible for 10.75 per cent of the May 2024 increase, water and sanitation by 7.34 per cent, meat and poultry by 6.46 per cent, unions by 5.86 per cent, and rents by 4.12 per cent.

The oil sub-group contributed to reducing the rise in May by 2.44 per cent, clothes by 1.63 per cent, furniture and carpets by 1.24 per cent, and home textile by 1.20 per cent, the department added.

AMMAN — Minister of Planning and International Cooperation Zeina Toukan and Vice President of the European Investment Bank (EIB) Gelsomina Vigliotti discussed opportunities and areas of cooperation aimed at supporting development priorities in line with the Economic Modernisation Vision (EMV).

During the meeting, the two sides discussed supporting the implementation of several priorities within the EMV and its executive programme for 2023-2025, as well as capital projects and public-private partnership projects, the Jordan News Agency, Petra, reported.

The minister praised the assistance provided by the bank through loans, investment and technical grants, which contributed to funding projects in key sectors such as water, sanitation, energy, transport, healthcare, industry, mining, education, private sector development and infrastructure. 

The EIB assistance also included financing Jordanian banks to provide intermediary lending support to small- and medium-sized enterprises and preparing technical studies and economic feasibility for projects in these sectors.

The bank has financed a range of vital projects in the Kingdom, such as the Disi Water Conveyance Project, the Wadi Arab Water Project for the northern governorates, supporting water sources in the Jordan Valley, water supply and sanitation for the Deir Alla and Al Karamah areas and the purchase of vaccines as part of the response to the COVID-19 pandemic. 

Also, the EIB has pledged support to the Aqaba-Amman Water Desalination and Conveyance Project — the National Water Carrier.

Vigliotti stressed the bank's understanding of the Kingdom's development needs and its aspiration for further cooperation and partnership with the Kingdom to support areas and sectors of mutual interest, such as digitalisation, energy, the environment, and climate change, in line with the priorities and projects included in the executive programme of the EMV.

On the sidelines of the meeting, Tiukan signed an agreement to establish and manage the bank’s representation in Jordan, indicating that this would enhance the "longstanding cooperation relations" between the two sides, which were enhanced by signing a framework agreement in 1997. 

The bank announced providing a grant to enhance the resilience of the public health sector in Jordan and support the purchase of 12 ambulances worth 990,000 euros, which will enhance the Ministry of Health’s emergency response capabilities.

The ambulances are expected to be deployed in Amman and northern regions, including areas hosting Syrian refugees, to enhance emergency medical services, ensure better access to healthcare, and improve response times for medical teams.

Vigliotti expressed EIB's pleasure to provide new support for healthcare in Jordan and support the purchase of 12 new ambulances from the bank's Economic Resilience Initiative Fund. 

The bank's portfolio in the Kingdom grew during the 2014-2024 period to nearly 1.8 billion euros, focused on sectors such as water, health, transport, energy, urban and municipal development, and lending to local companies and commercial banks to support micro-, small-, and medium-sized enterprises.

Separately, Toukan discussed with Canadian Minister of Development Ahmed Hussen the importance of continuing and enhancing the development cooperation programme directed towards Jordan to support priorities stemming from the EMV and its executive programme for 2023-2025.

The two sides, during their meeting on Monday evening, stressed the importance of Jordan benefitting from future Canadian international development cooperation programmes in sectors such as health, vocational and technical education and climate change, including the potential networking opportunities with international, UN, and multilateral institutions to support new projects.

Hussen reiterated Jordan’s priority for his country due to its effective implementation of "purposeful" development programmes and Canada’s intention to continue supporting the Kingdom’s development priorities and increasing support opportunities for capacity-building projects in targeted sectors. 

He praised the Kingdom's role in hosting large numbers of Syrian refugees.

AMMAN — The ongoing Israeli war against Gaza has impacted the Kingdom’s economy, notably the tourism sector.

An International Monetary Fund (IMF) report said that the current impact of the war on Gaza is concentrated on the tourism sector as a result of the cancellations by tourists from advanced economies, which account for a third of tourism revenues.

Bookings cancelled in the last quarter of the previous year reached at least 65 per cent, largely due to the Israeli war on the Gaza Strip, according to official estimates. 

The number of tourists arriving in the Kingdom in the first four months of 2024 dropped by 8.8 per cent compared to the same period of 2023, according to figures by the Ministry of Tourism and Antiquities.

In 2023, the Kingdom’s income from tourism increased by 27.4 per cent, according to the data issued by the Central Bank of Jordan (CBJ) in January.

The Ministry of Tourism and Antiquities’ first-quarter report for 2024, providing a detailed overview of income, visitor statistics and strategic objectives for the upcoming year, showed a 9.7 per cent decrease in tourist arrivals compared with the same period in 2023, with the total number of visitors reaching 1.334 million.

The report attributed the decline in numbers to regional events that have impacted the sector’s performance, leading to a 5.6 per cent drop over the same period, adding that despite these challenges, the tourism sector has shown resilience.

The Central Bank of Jordan has reported that tourism revenues in the first four months of the year totalled $2.1 billion, marking a decrease of 4.9 per cent compared with the corresponding period of 2023. Tourism revenues in April also went down by 2.6 per cent to $529 million, compared with the same period of last year.

Tourism revenues exceeded projections for the first three quarters of 2023, showing a 27.4 per cent increase and setting a "historical" precedent at JD5.2 billion, according to the CBJ.

According to the IMF's first review under the IMF Extended Fund Facility (EFF) last month, despite the ongoing war in Gaza, Jordan should be able to navigate the associated challenges well, provided there is no significant regional escalation.

This resilience is attributed to the authorities’ strong commitment to sound macroeconomic policies and advancing structural reforms. Growth is expected to moderate to 2.4 per cent in 2024 and rebound in 2025.

The IMF also noted that strong and timely international support remains crucial for helping Jordan cope with external pressures and the financial burden of hosting a large number of Syrian refugees.

AMMAN — The ongoing Israeli war on Gaza has extended its devastation beyond the immediate human toll, reaching a state of "ecocide" that impacts the environment in often overlooked ways. The relentless bombings and military operations have not only obliterated infrastructure but also wreaked havoc on Gaza’s ecosystem.

The first four months of the war have inflicted $18.5 billion in damage to Gaza's infrastructure, destroying up to 66 per cent of buildings and half of the besieged strip’s trees, and resulting in the deaths of more than 36,000 Palestinians, according to the health ministry in Gaza, the World Bank and the UN.

Pollution in Gaza spans water, debris, and air, creating severe environmental impacts that pose long-term threats to the health and livelihoods of its inhabitants. Over 100,000 cubic metres of sewage and wastewater are being discharged daily onto land or into the Mediterranean Sea, according to the United Nations Environment Programme (UNEP).

The UNEP spokesperson told euronews.green in March that past marine pollution incidents in Gaza have led to elevated levels of chlorophyll and suspended organic matter in coastal waters, as well as gastrointestinal parasites. The current war is likely exacerbating these problems.

Simultaneously, solid waste is being disposed of in informal sites, where hazardous substances can seep into the porous soil and potentially contaminate Gaza's primary water source, the aquifer. The rise in communicable diseases is alarming, driven by water scarcity, overcrowding, and a healthcare sector on the verge of collapse.

In the most overcrowded shelters in the south, there is only one toilet available for every 600 internally displaced persons, and access to running water is minimal, as reported by the American Near East Refugee Aid.

Debris and hazardous waste present a significant issue. As of January 7, UNEP estimated that the total amount of debris had reached 22.9 million tonnes, a number that has likely risen substantially since. This vast accumulation of rubble, combined with hazardous waste, is contaminating land and water sources, further exacerbating the humanitarian crisis. The United Nations Mine Action Service (UNMAS) estimated that by mid-April, the Gaza Strip contained approximately 37 million tonnes of debris, equating to 300 kilogrammes per square metre.

"Gaza has more rubble than Ukraine, and to put that in perspective, the Ukrainian front line is 600 miles [nearly 1,000 kilometres] long, and Gaza is 25 miles [40 km] long," according to Mungo Birch, head of the UNMAS programme in the Palestinian territories.

"This rubble is likely heavily contaminated with UXO [unexploded ordnance], and its clearance will be further complicated by other hazards in the rubble," Birch was quoted as saying in international press.  

"There's estimated to be over 800,000 tonnes of asbestos alone in the Gaza rubble."

The war on Gaza is estimated to have produced between 420,265 and 652,552 tonnes of carbon dioxide equivalent, comparable to burning over 1.5 million barrels of oil, according to British-American study, which also found that the greenhouse gas emissions produced in the first two months of the Gaza war exceeded the annual carbon footprint of over 20 of the world's most climate-vulnerable countries. The study estimates that the climate impact of the Israeli war in the first 60 days is equivalent to burning at least 150,000 tonnes of coal.

The use of white phosphorus by the Israeli army has further contributed to environmental contamination. White phosphorus is harmful to humans through all routes of exposure, and the smoke it produces contains phosphoric acids and phosphine, which are harmful to the eyes and respiratory tract, as stated by the World Health Ogranisation.

CARACAS — Venezuelan President Nicolas Maduro has signed an agreement with Turkey to extract gold in his country's south where large areas have been devastated by illegal mines.

"Turkey's investment is intended to continue developing gold [in] the Mining Arc [of Orinoco]," Maduro said, referring to a region rich in gold, iron, coltan and other minerals, which have been subject to illicit extraction.

"We are going to develop these gold fields, and I wish you the best of luck so that what we are signing... becomes an example of ecological development that is respectful of nature and very productive," the leftist leader said at Friday's signing.

Activists have long denounced "ecocide" in the South American nation's southern region.

Authorities say illegal miners fell and burn trees, contaminate rivers and engage in underground drilling that harms the environment as well as Indigenous communities.

On Friday, Maduro also signed agreements with Turkey related to the construction of an ammonia refinery and the tapping of gas reserves.

"They are three great projects of the future for petrochemicals, gas and gold," said Maduro, who is campaigning ahead of the July 28 presidential election.

Turkish President Recep Tayyip Erdogan is scheduled to visit Venezuela this year, but no date has been announced.

Erdogan visited the country in December 2018 to lend support to Maduro after the United States and several European nations disavowed the Venezuelan leader's reelection over accusations of fraud.

SEOUL — Workers at tech giant Samsung Electronics in South Korea staged the first strike at the company recently, the head of a major union representing tens of thousands of people told AFP.

Samsung Electronics is one of the world's largest smartphone makers and also one of the only companies globally to produce high-end memory chips used for generative AI, including top-of-the-line AI hardware from industry leaders such as Nvidia.

Management at the firm, the world's biggest producer of memory chips, has been locked in negotiations with the union over wages since January but the two sides have failed to narrow their differences.

"The first strike at Samsung Electronics is taking place today through the use of paid leave, and it is understood that many employees are participating," Son Woo-mok, head of the National Samsung Electronics Union said.

"It's difficult to provide an exact number, but from what I've seen of the workplace attendance in the morning, there is a significant difference from the usual," he added.

Samsung Electronics said it has been "diligently engaging in negotiations with the union and will continue to do so".

"There is no impact on production and business activities. The paid leave usage rate on June 7 is lower than that of June 5 last year," which, like Friday, was sandwiched between a public holiday and a weekend, the company said in a statement.

The strike in South Korea is the first walkout by the tech giant's workers.

Around 10 workers held a protest in front of Samsung's major office in Seoul on Friday, chanting: "Respect labour! We do not want a 6.5 per cent raise or a 200 per cent bonus!"

Samsung Electronics is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.

Taiwan-based market research firm TrendForce said that the strike would not impact DRAM and NAND Flash production, nor would it cause any shipment shortages.

Samsung accounts for a significant chunk of global output of the high-end chips, but the strike involves headquarters employees, not workers on the production lines, TrendForce said. 

Additionally, it is only a one-day strike, and falls during a long-planned holiday period in South Korea, meaning the company would likely already have adjusted anticipated staffing levels. 

"Finally, fabs rely heavily on automated production and require minimal human labour. Therefore, the strike will not have any substantial impact on the future memory supply," TrendForce said in a report.

Historic strike 

Even so, the strike carries historical importance, "since Samsung resisted unionisation and engaged in union-busting for so long", Vladimir Tikhonov, professor of Korean Studies at the University of Oslo, told AFP.

He said the collective action showed that "there is a gradual tendency towards empowerment of labour in South Korea".

Samsung Electronics avoided the unionisation of its employees for almost 50 years — sometimes adopting ferocious tactics, according to critics — while rising to become the world's largest smartphone and semiconductor manufacturer.

Samsung founder Lee Byung-chul, who died in 1987, was adamantly opposed to unions, saying he would never allow them "until I have dirt over my eyes".

But in the late 2010s, organisers seized the opportunity presented by the left-leaning government of President Moon Jae-in — a former rights lawyer who represented trade unions — and controversy around the bribery trial of the company's then-vice-chairman Lee Jae-yong, the founder's grandson, to set up a union.

The National Samsung Electronics Union, which has around 28,000 members, or more than a fifth of the company's total workforce, has said the word "strike" has been a "taboo word" at the tech giant.

"We consistently advocate for the company to respect labour issues, stop oppressing unions, and avoid making unilateral decisions on matters so closely related to workers," union head Son told AFP.

Semiconductors are the lifeblood of the global economy used in everything from kitchen appliances and mobile phones to cars and weapons.

They are South Korea's leading export and hit $11.7 billion in March, accounting for a fifth of total exports, according to trade ministry figures.

Lee Hyun-kook, vice president of the union, said the strike won't "lead to a disruption in production and we don't want it to lead into one".

"We just want Samsung to hear our voice," he told AFP.