Source: African Development Bank Group
The just-concluded Mission 300 Africa Energy Summit in Dar es Salaam marks a pivotal shift in how the continent approaches its energy crisis, from fragmented national efforts to a coordinated continental strategy backed by robust financial commitments and political will.
Category: Economics
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MIL-OSI Economics: Mission 300 Energy Summit: A watershed moment for Africa’s energy future
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MIL-OSI Economics: ACP Statement on Tariffs on U.S. Imports from Canada, Mexico, and China
Source: American Clean Power Association (ACP)
Headline: ACP Statement on Tariffs on U.S. Imports from Canada, Mexico, and China
WASHINGTON DC, February 2, 2025 – The American Clean Power Association (ACP) released the following statement from Jason Grumet, ACP CEO following the announcement of tariffs on U.S. imports from Canada, Mexico, and China:
“ACP and its member companies share the Trump Administration’s concern over the fentanyl crisis and public health emergency impacting our communities. ACP recognizes and appreciates the Administration’s early focus on this crisis.
“ACP also supports the Administration’s commitment to lower American energy prices. While energy production only represents 5% of our nation’s direct GDP, it drives the productivity of our entire economy, impacting prices of nearly all consumer goods. In concert with the other trade associations representing America’s energy resources, ACP is concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance.
“While the fuel relied upon by wind and solar energy—complemented by battery storage—is free, some parts for these machines that harness these renewable resources are manufactured in Canada and Mexico. As we have made significant progress manufacturing these components in the United States, the benefits of USMCA have been a positive factor in lowering American energy costs. We look forward to working with the Administration as it pursues multiple imperatives.” -
MIL-OSI Economics: Starting 4 February 2025, CBB: Announcement of appointment booking date to obtain second and final batch of Silver Commemorative Coin minted on the occasion of the Silver Jubilee of His Majesty King Hamad bin Isa Al Khalifa, marking 25 years of His Majesty’s reign
Source: Central Bank of Bahrain
Starting 4 February 2025, CBB: Announcement of appointment booking date to obtain second and final batch of Silver Commemorative Coin minted on the occasion of the Silver Jubilee of His Majesty King Hamad bin Isa Al Khalifa, marking 25 years of His Majesty’s reign
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MIL-OSI Economics: Secretary-General of ASEAN to participate in the 21st Meeting of the High-Level Task Force on ASEAN Community’s Post-2025 in Manila, the Philippines
Source: ASEAN
In his capacity as a member of the High-Level Task Force on ASEAN Community’s Post-2025 Vision, Secretary-General of ASEAN Dr. Kao Kim Hourn will lead the ASEAN Secretariat delegation to participate in the 21st Meeting of the High-Level Task Force on ASEAN Community’s Post-2025 Vision, which will be held in Manila, the Philippines, on 3 to 5 February 2025.
The post Secretary-General of ASEAN to participate in the 21st Meeting of the High-Level Task Force on ASEAN Community’s Post-2025 in Manila, the Philippines appeared first on ASEAN Main Portal. -
MIL-OSI Economics: Statement by IMF Managing Director Kristalina Georgieva on the Passing of Former IMF Managing Director Mr. Horst Köhler
Source: International Monetary Fund
Washington, DC: Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement today after news of the death of Mr. Horst Köhler, former IMF Managing Director:
“It is with great sadness that we have learned of the passing of Horst Köhler, who was the eighth Managing Director of the Fund and ably led our institution between 2000 and 2004. Mr. Köhler will be remembered for his many contributions, and in particular for navigating the Fund’s work through the difficult period after September 11, 2001. He mobilized the Fund and the international community to help the low-income and heavily indebted members, championing greater transparency and strong governance.
“During his distinguished career, he played a key role in Germany’s unification in 1990 as Deputy Finance Minister of the Federal Republic of Germany and was instrumental in drafting the legal framework for the introduction of the euro. He served as president of the European Bank for Reconstruction and Development, before joining the IMF as Managing Director. In 2004 he left the IMF to become president of the Federal Republic of Germany, winning the hearts of many for his principled approach. Throughout a large part of his life, he was particularly devoted to drawing the world’s attention to the needs of the African continent – something many of us at the Fund greatly admired.
“On behalf of the IMF, I wish to offer our deepest condolences to Mr. Köhler’s family – his wife Eva, his two children Ulrike and Jochen, and his grandchildren. Mr. Köhler led a life of distinguished public service, and leaves behind a profound legacy of dedication to fairness and justice and an unfailing concern for others.”
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MIL-OSI Economics: Personalized health & wellness for women, expanding flavor choice, and health longevity offer food and beverages brands growth opportunities in 2025, says GlobalData
Source: GlobalData
The interconnectivity of all health concerns could offer food and beverages brands innovation opportunities in 2025 by addressing multiple wellness concerns at once.
Several key trends are set to influence consumer purchasing behavior in 2025, including personalized health and wellness with a focus on women, health longevity, personalized products and experiences, and sustainability solutions aided by new technologies. GlobalData, a leading data and analytics company, highlights four food and beverages trends that are set to offer consumer packaged goods brands innovation opportunities in 2025:
Personalized Health and Wellness: Women’s Health
Women’s health has long been under-researched, presenting an opportunity for brands to create new products and new marketing initiatives to meet women’s unique health needs.
In the supplements market, product ranges catering to reproductive and hormonal health concerns are now expanding into women’s fitness, digestion, and sleep – all of which require different supplements to men. Brands like Women Best recognize this and solely target women, providing them with supplements to support their dietary needs with functional benefits such as energy, focus, and stress relief. Unilever’s SmartyPants Vitamins range also offers multivitamins and pre and probiotic supplements that cater specifically to women’s health needs. In line with this, the women’s supplement market has seen double-digit value growth over the last two years, according to GlobalData Market Analyzers.
Fahima Omer, Food Consultant and analyst at GlobalData, comments: “Whilst the health benefits of supplements are harnessed in products such as vitamins and protein bars, consumer packaged goods manufacturers could explore opportunities to develop new food and beverages products using supplement ingredients. One such opportunity is to recognize the interconnectivity of all health concerns and release more products aimed at addressing multiple wellness concerns at once.”
Sustainability solutions based on new technologies
Cell-based foods first emerged in 2013 when a scientist in the Netherlands managed to cultivate a burger patty. With new technological advancements and the use of molecular biology, brands such as GoodMeat create meat simply by feeding cells in a sterile environment. Widespread adoption of cell-based meat products has been slow thus far, but this developing technology offers the potential to produce meat products at scale in a more sustainable way. This is becoming increasingly important as The Food and Agricultural Organization at the United Nations* revealed in its 2017 report, “Tackling Climate Change Through Livestock”, that livestock is a significant contributor to climate change with emissions estimated at 7.1 gigatonnes CO2, representing 14.5% of human-induced GHG emissions.
According to GlobalData’s consumer survey (Q3 2024), this kind of sustainability initiative resonates with 74% of global consumers who say that ‘sustainable/environmentally friendly’ is an ‘essential’ or ‘nice to have’ feature when deciding to make a product purchase.
Cell-based foods could also address food insecurity. In a UN/WHO** joint report from 2022, the organization estimated that 11% of people globally suffer from undernourishment despite the planet being able to produce enough food.
Health Longevity: An aging population and the rise of personalization
With 22% of the world’s population expected to be over 60 years old by 2050, according to WHO***, there will be growing demand for food and beverage products that support this cohort’s desire for a long, healthy, and active life. Meal kits with claims around health management have grown in value by 67% during 2016-23, according to GlobalData Market Analysers’ health and wellness data on prepared meals.
As older adults become more proactive about their health, they are choosing products that align with their wellness goals, including dietary supplements and foods rich in vitamins and nutrients that support longevity. Food manufacturer Chin Huay has responded to this demand with a selection of snacks formulated with probiotics, which support senior consumers’ dietary needs, and coffee brand UDA infuses several longevity-centric supplements to help fight aging. These include NMN, which increases metabolism and aids DNA repair; cognitive enhancer L-Theanine; quercetin, an anti-senescence and anti-inflammatory; and ashwagandha, to reduce fatigue and stress.
This trend reflects a broader societal shift towards preventative health measures and lifestyle improvements, which have gained traction following the pandemic. Personalized health and wellness solutions from companies that provide health advice from the analysis of personal health data are growing in popularity. Everlywell provide at-home test kits that check age and gender-related conditions with the aim of providing consumers with specific lifestyle recommendations.
Flavor expansion in Foods and Foodservice
The ubiquity of foreign travel and the rise in social media usage have exposed consumers to global cuisines and flavors, which they have embraced, providing companies with the opportunity to expand their product and flavor choices beyond core brands and gain awareness for them through social media.
According to GlobalData’s Consumer Survey (Q1 2024), 56% of 25-34-year-olds, globally, use social media to discover products and new flavors. A further 51% of the same age group agree with the statement ‘when I find a product in a new flavor I like, I enjoy sharing this knowledge on social media’.
Foodservice operators such as UK-based Los Mochis have been successful in merging Japanese and Mexican cuisines using ingredients such as chipotle and kombu broth to create a chipotle miso soup, exposing their customers to bold new flavor choices.
Omer adds: “Food and beverages trends in 2025 will reflect a complex interplay of functional health & wellness, sustainability, digitalization, and flavor choice. Innovation will not only cater to consumers’ immediate health needs but also prioritize health longevity. There could be a renewed focus on lab-grown meat which has the potential to address food insecurity whilst also combatting climate change. These trends will also present opportunities for brands to sell more value-added and premium products to meet the evolving expectations of consumers in a rapidly changing marketplace.”
* Source: The Food and Agricultural Organization at the United Nations 2017 Report: Tackling Climate Change through Livestock
** Source: UN/WHO joint report: State of Food Security and Nutrition, 2022
*** Source: WHO website ‘Ageing statistics’GlobalData Consumer Custom Solutions offers sector-level expertise in the Consumer Packaged Goods, Food, Beverages, Foodservice, Retail, Apparel, Packaging, Agribusiness, and Automotive industries. We use our unique data, insights and analytics to answer your bespoke questions with a tailored approach and deliverables. To learn more about this press release or have a chat, please drop us an email consulting@globaldata.com or contact us here and we’ll get in touch!
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MIL-OSI Economics: o3-mini is here and ships today on Azure AI Foundry and GitHub Copilot and Models… can’t wait to see what you build!
Source: Microsoft
Headline: o3-mini is here and ships today on Azure AI Foundry and GitHub Copilot and Models… can’t wait to see what you build!
Excellent and timely offer Satya Nadella. The O3 mini reasoning model in Azure OpenAI Service opens the door for enterprises to experiment with modular AI architectures, where task-specific models complement larger foundation models. Instead of relying solely on massive, compute-heavy LLMs, organizations can deploy lightweight, domain-optimized AI agents for real-time decision-making, edge AI, or hybrid cloud inference. This shift aligns with the growing demand for AI efficiency at scale, especially as businesses seek cost-conscious, high-performance solutions in an increasingly competitive landscape.
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MIL-OSI Economics: o3-mini reasoning model now available in Microsoft Azure OpenAI Service
Source: Microsoft
Headline: o3-mini reasoning model now available in Microsoft Azure OpenAI Service
We are pleased to announce that OpenAI’s new o3-mini model is now available in Microsoft Azure OpenAI Service. Building on the foundation of the o1 model, o3-mini delivers a new level of efficiency, cost-effectiveness, and reasoning capabilities.
We are pleased to announce that OpenAI o3-mini is now available in Microsoft Azure OpenAI Service. o3-mini adds significant cost efficiencies compared with o1-mini with enhanced reasoning, with new features like reasoning effort control and tools, while providing comparable or better responsiveness.
o3-mini’s advanced capabilities, combined with its efficiency gains, make it a powerful tool for developers and enterprises looking to optimize their AI applications.
With faster performance and lower latency, o3-mini is designed to handle complex reasoning workloads while maintaining efficiency.
New features of o3-mini
As the evolution of OpenAI o1-mini, o3-mini introduces several key features that enhance AI reasoning and customization:
- Reasoning effort parameter: Allows users to adjust the model’s cognitive load with low, medium, and high reasoning levels, providing greater control over the response and latency.
- Structured outputs: The model now supports JSON Schema constraints, making it easier to generate well-defined, structured outputs for automated workflows.
- Functions and Tools support: Like previous models, o3-mini seamlessly integrates with functions and external tools, making it ideal for AI-powered automation.
- Developer messages: The “role”: “developer” attribute replaces the system message in previous models, offering more flexible and structured instruction handling.
- System message compatibility: Azure OpenAI Service maps the legacy system message to developer message to ensure seamless backward compatibility.
- Continued strength on coding, math, and scientific reasoning: o3-mini further enhances its capabilities in coding, mathematics, and scientific reasoning, ensuring high performance in these critical areas.
With these improvements in speed, control, and cost-efficiency, o3-mini is optimized for enterprise AI solutions, enabling businesses to scale their AI applications efficiently while maintaining precision and reliability.
From o1-mini to o3-mini: What’s changed?
o3-mini is the latest reasoning model released, with notable differences compared with the o1 model released last September. While both models share strengths in reasoning, o3-mini adds new capabilities like structured outputs and functions and tools, resulting in a production-ready model with significant improvements in cost efficiencies.
Feature comparison: o3-mini versus o1-mini
Feature o1-mini o3-mini Reasoning Effort Control No Yes (low, medium, high) Developer Messages No Yes Structured Outputs No Yes Functions/Tools Support No Yes Vision Support No No Join us on this journey
We invite you to explore the capabilities of o3-mini and see how it can transform your AI applications. With Azure OpenAI Service, you get access to the latest AI innovations, enterprise-grade security, and global compliance, and data remains private and secure.
Learn more about OpenAI o3-mini in GitHub Copilot and GitHub Models here.
Get started today! Sign up in Azure AI Foundry to access o3-mini and other advanced AI models.
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MIL-OSI Economics: Paraguay President: Any multilateralism crisis can only be solved with more multilateralism
Source: World Trade Organization
President Peña noted that Paraguay is one of the most open economies in the world, firmly anchored in the belief that “free commerce is a bedrock of civilized peoples.” In fact, Paraguay is the second most open economy in Latin America, with no significant restrictions on trade, a simple tax system and a markedly pro-business stance, he said. As a landlocked country and primarily an agricultural exporter, producing food for ten times its population, Paraguay has no other alternative, he added.
“We understand both the opportunities and vulnerabilities of global trade. Our experience has shown us that the path to development requires not isolation but deeper integration into global markets – guided by clear, fair and enforceable rules. For middle-sized economies like Paraguay, the multilateral trading system is not just one option among many, it is simply essential for our development and prosperity. This is why I believe that any crisis of multilateralism can only be solved by one thing: more multilateralism,” he declared.
President Peña stressed that Paraguay’s commitment to the WTO stems from its experience as a country which has constructed a stable democracy with consistent economic policies and its unique perspective as a bridge between countries with different levels of development. It also comes from the deep conviction that multilateralism remains the most effective path to sustainable development, he added.
Referring to the historic decision to establish multilateral institutions after the Second World War, President Peña noted that it is precisely during difficult times that organizations like the WTO have the unique opportunity not only to show the world their crucial importance but to justify their existence. “The creation of an international organization which seeks to put order into chaos in the world of commerce was not only a sound decision but a brilliant and endurable insight. … The WTO has been, is and will be a great idea,” he added.
In his address to WTO ambassadors, heads of intergovernmental organizations, representatives of non-governmental organizations, business and academia, President Peña also underscored that WTO members must be proactive in order to overcome the challenges faced by the system.
He pointed to the need to make meaningful progress on agricultural reform to achieve less distorted markets and enhance food security, and to the importance of restoring a fully functioning dispute settlement system accessible to all members. He also called on members to ensure that environmental measures enhance, rather than hinder, international trade, and to secure justice, fairness and equality, the most fundamental principles of international commerce.
The lecture – titled “Sustaining Multilateralism in Uncertain Times: The Role of Middle Powers” – was preceded by opening remarks by WTO Director-General Ngozi Okonjo-Iweala, who stressed that under President Peña Paraguay registered South America’s strongest rates of GDP growth in 2023 and 2024, according to IMF data, with a positive outlook for 2025 as well.
DG Okonjo-Iweala noted that as a landlocked developing country, Paraguay faces challenges familiar to many WTO members. In the case of Paraguay, these challenges have to do with diversifying its exports beyond meat, soybeans and electricity, and the vulnerability to climate change of the Paraguay-Parana River waterway that connects the country to world markets for goods.
DG Okonjo-Iweala referred to the fifth WTO Trade Policy Review (TPR) of Paraguay undertaken in November 2024 and the recognition by other members of Paraguay’s active and constructive engagement at the WTO, particularly in agriculture negotiations. She noted that at the TPR meeting, members praised Paraguay’s broadly open trade and investment environment and noted its reliance on regional and global trade to drive development and poverty reduction.
DG Okonjo-Iweala also drew attention to the current challenging environment and the potential for the world to become more fragmented. “We have lived in that world before in the 1930s. It was poorer and more violent. So we owe it to our children and grandchildren,” she said, to preserving the benefits of multilateralism whilst fixing its shortcomings. “This would help us build them a better future,” she added.
A recording of the event can be viewed here.
About the WTO’s Presidential Lecture Series
The WTO’s Presidential Lecture Series provides a platform for distinguished speakers from around the world to deliver lectures on various aspects of multilateral cooperation and global governance. Several events are held each year.
More information on the lecture series is available here.
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MIL-OSI Economics: Verizon conquers remaining Dead Zones through Satellite with help of Test Man and Buzz Aldrin
Source: Verizon
Headline: Verizon conquers remaining Dead Zones through Satellite with help of Test Man and Buzz Aldrin
NEW YORK – Today, Verizon is pushing the boundaries of satellite and terrestrial telecommunications convergence. Satellites are no longer reserved for the extraordinary—they are woven into the everyday, and are being used to help connect and power customers’ lives.
A lot has changed since 2014 when Verizon’s famous test man roamed the country asking “Can you hear me now?” Now he’s back, and reaching the limits of space with the help of American icon and astronaut Buzz Aldrin. They’re partnering to show how America’s largest network just got better.
“Fifty-six years ago I was one of the select few that made it into Space and the first team to help America conquer the moon,” said Buzz Aldrin, General USAF, Doctor of Astronautics. “Back then, Space was the great unknown, and now we’ve never been closer to it. I can’t look up in the sky without seeing a satellite fly by. It’s remarkable to see how far the human race – and technology – has come.”
“It’s been 10 years since I last asked America “Can you hear me now?,” said Paul Marcarelli, the Original Verizon Test Man. “Back then dead zones were everywhere and it’s safe to say today they are only in the most remote places like the dark side of the moon. Verizon’s always been on a mission to give its customers the very best experience, anticipate their changing needs and drive innovation. Satellite is for sure the next frontier.”
Freedom to message anywhere with satellite-power.
Verizon engineers are relentlessly focused on providing the most reliable network experience for customers. Verizon’s network covers more than 99% of where people live, work and play, leaving very few places throughout the country where customers can’t connect. With the addition of satellite back-up to Verizon’s already robust network, Verizon is making the largest network even better.
Satellites play a crucial role in making connectivity with Verizon even more reliable, enabling text messaging in the few areas where traditional terrestrial-based cellular networks might not reach. Here’s how:
- Customers with select devices have access to satellite messaging features to enhance connectivity in areas without cellular coverage, allowing customers to send an emergency SOS message and provide their location.
- Verizon is collaborating with Skylo to make satellite messaging features and location detection available for customers with select Android devices.
- And recently, AST SpaceMobile and Verizon announced a strategic partnership with a commitment of $100 million from Verizon, to provide direct-to-cellular AST SpaceMobile service when needed for Verizon customers. The combination of Verizon’s highly reliable terrestrial mobile network, use of the multi-operator 850 Mhz band and AST’s commercial satellite array in low Earth orbit, is planned to enable cellular consumers to stay connected wherever they are, anywhere in the continental United States.
This week, the Federal Communications Commission (FCC) has granted AST Special Temporary Authority (STA) authorizing beta service in the United States. This approval enables AST SpaceMobile’s first five commercial BlueBird satellites, operating in low Earth orbit today, to test satellite connections with Verizon smartphones supporting voice, full data and video applications, and other native cellular capabilities, without the need of any specialized software or device support or update.
Satellites provide reliable service in emergency situations.
Verizon utilizes nearly 300 satellite-based portable network assets to ensure connectivity where fiber cables are unavailable or compromised. These assets provide temporary network access for first responders and in areas with limited permanent infrastructure, or for linking cell sites to the broader network when fiber cables are compromised due to power outages or physical damage.
Satellite connections speed up delivery of service to customers in remote areas.
Verizon uses satellite connections as backhaul for cell sites in remote areas (like forests and mountain tops) where traditional wired connections like fiber are not yet available. Satellite connections can be set up quickly compared to laying fiber, particularly in areas with significant geographical or logistical barriers. This rapid deployment is a useful solution while fiber optics is being planned and deployed. This allows cell sites to be operational and provide service while waiting for the installation of a more robust and high-capacity connection.
* “Largest network” based on total postpaid phone connections publicly reported by Verizon, T-Mobile and AT&T during the third quarter of 2024.
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MIL-OSI Economics: Fresh start after the storm: Verizon erases $10M in debt for Western North Carolina Families with ForgiveCo
Source: Verizon
Headline: Fresh start after the storm: Verizon erases $10M in debt for Western North Carolina Families with ForgiveCo
CHARLOTTE, NC – Verizon is teaming with ForgiveCo to eliminate $10 million in consumer debt for 6,500 Western North Carolinians. The debt relief campaign is part of Verizon’s ongoing commitment to recovery following Hurricane Helene’s sweeping devastation.
Hundreds of North Carolina families are currently learning that Verizon has cleared their medical, financial, and other debts of necessity. The debt relief was implemented by ForgiveCo, whose “random acts of kindness” model purchases consumer debt in the affected areas, with no applications required, and notifies recipients through life-changing surprise letters, emails, and text messages.
As if a phone call learning that your debt has been cleared isn’t exciting enough, Basketball Hall of Fame coach and Asheville (N.C.) native, Roy Williams, has signed on to be the one to share the news with the impacted families.
In a press conference today, at Verizon’s South Asheville store, the organizations announced all applicable debt has been forgiven. No further action is required by the beneficiaries. This random act of kindness is in addition to Verizon’s $400,000 donation to United Way of North Carolina immediately following the storm.
Leigh Anne Lanier, Atlantic South Market President, Verizon: “Verizon believes in the power of connection, not only through our technology but through the bonds we build with the communities we serve. To the 6,500 individuals impacted by this initiative and the broader Western North Carolina community, we are with you. We will always stand by you, not just as a business, but as a partner and a neighbor.”
Roy Williams, North Carolina native, resident, philanthropist and Basketball Hall of Fame coach: “Verizon’s random acts of kindness will lift up thousands of North Carolinians that were left vulnerable to Hurricane Helene’s devastation. These are challenging times, but I’ve seen the strength and resilience of this community. Verizon’s support is a powerful reminder that no one is alone, and together, we’ll rise stronger. It’s a privilege to share this message of hope with the incredible people of North Carolina.”
Craig Antico, Founder and CEO, ForgiveCo: “Unpayable debt is a heavy burden that causes hardship for countless hardworking Americans. Often triggered by sudden medical events or accidents, the impact of natural disasters can further destabilize families and limit opportunities for generations. Through this effort, Verizon will bring transformative change to the lives of North Carolinians in crisis, leaving a lasting mark on future generations.”
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MIL-OSI Economics: DG Okonjo-Iweala welcomes 2025 cohort of WTO Young Professionals
Source: World Trade Organization
A key initiative to enhance diversity and strengthen WTO membership representation at the professional level within the Secretariat, the YPP has supported the development of trade expertise among young professionals from developing economies and least developed countries (LDCs) since 2017. This year’s participants were selected from a highly competitive pool of approximately 5,500 applicants.
In her welcoming remarks, DG Okonjo-Iweala commended the Young Professionals for gaining entry into this highly competitive programme. Reflecting on the current global trade landscape, she noted that 2025 will be a pivotal year for the WTO, with geopolitical tensions having a potential impact on negotiations on key issues such as fisheries subsidies, dispute settlement reform, development and agriculture.
Despite these challenges, the goal must be to deliver results wherever possible and “to lay a strong foundation for a successful Fourteenth WTO Ministerial Conference (MC14) in Cameroon in March 2026,” DG Okonjo-Iweala told the Young Professionals.
She further underscored the broader impact of the WTO’s work and stressed that the role of the organization is “to deliver results that are good for people and the planet,” demonstrating how trade cooperation at the WTO can enhance certainty and foster growth for all members, big and small.
DG Okonjo-Iweala also expressed gratitude to members who have contributed to the WTO Global Trust Fund, helping to make the YPP and other technical assistance programmes possible.
During their initial weeks at the WTO, the Young Professionals underwent an intensive induction programme featuring over 60 Secretariat staff members, designed to provide them with a comprehensive understanding of the WTO’s work.
Speaking on behalf of the 2025 cohort, Nada Alsalmi from Saudi Arabia emphasized the significance of the programme in equipping young professionals with the tools needed to contribute to global trade.
“Our presence at the WTO is not just a privilege, but also a responsibility. We must seize every opportunity to deepen our understanding of the multilateral trading system so we can use this knowledge to strengthen and enhance global trade, making the world more predictable, sustainable and prosperous,” she said.
She also expressed gratitude to the WTO for “this exceptional initiative” and thanked the Director-General for “upholding this programme and strengthening its vision.”
The ceremony also featured remarks from ambassadors of WTO members represented in this year’s YPP, who praised the programme’s role in nurturing trade talent and strengthening the multilateral trading system.
This year’s Young Professionals hail from Angola, Armenia, Burkina Faso, Botswana, Cambodia, Cameroon, Côte d’Ivoire, The Gambia, Georgia, Ghana, Kenya, Malawi, Malaysia, Moldova, Nigeria, Singapore, Saudi Arabia, Togo and Viet Nam.
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MIL-OSI Economics: IMF Executive Board Concludes 2024 Article IV Consultation with Samoa
Source: International Monetary Fund
January 31, 2025
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Samoa on January 16, 2025 and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]
Samoa’s economic recovery has been remarkable. Following a 15 percent contraction over 3 years during the pandemic, GDP growth rebounded to 9.2 percent in FY2023 and accelerated further to 9.4 percent in FY2024, driven by a quick recovery in the tourism sector. Inflation has declined from double digit levels in FY2023 to 2.9 percent year-on-year in October 2024. The fiscal surplus increased further to 10.1 percent of GDP in FY2024, supported by robust grant flows, buoyant tax revenues, and restrained expenditures, including low capital spending amid capacity constraints. The current account moved to a surplus in FY2024 which, combined with continued strong grant inflows, supported a significant increase in foreign reserves.
GDP growth is projected to remain robust at 5.5 percent in FY2025, driven by an anticipated pickup in public investment and the preparations and hosting of the Commonwealth Heads of Government Meeting (CHOGM). Inflation is expected to rise moderately amid the ongoing economic recovery. While the near-term outlook remains favorable, growth is expected to slow to the historical average of around 2 percent in the medium term. Furthermore, risks to the outlook are skewed to the downside amid heightened global uncertainties and potential pressures on inflation, including from significant excess liquidity in the banking system.
Executive Board Assessment
In concluding the 2024 Article IV consultation with Samoa, Executive Directors endorsed the staff’s appraisal, as follows:
Samoa’s near-term economic outlook remains favorable. GDP growth in FY2025 is projected to remain well above pre-pandemic levels, supported by the preparations and hosting of CHOGM and the envisaged expansionary fiscal stance. Inflation is expected to rise moderately as the economic recovery continues. GDP growth is expected to converge towards the historical average of about 2 percent over the medium-term. Risks to the outlook are tilted to the downside, including from a slowdown in key trading partners amid heightened global uncertainty, as well as upside risks to inflation from external and domestic sources.
Samoa’s recent policy mix has helped build significant economic buffers but has also presented challenges. Large fiscal surpluses have improved debt dynamics, resulting in an upgrade to Samoa’s debt distress rating from high to moderate in the IMF-WB DSA, but low capital spending is undermining the economy’s productive capacity. The tight fiscal stance, coupled with high grants and remittance inflows and the exchange rate peg, has resulted in the emergence of a large current account surplus with the external sector assessed to be substantially stronger than the level implied by fundamentals and desired policy settings. The resulting large build up in foreign reserves has also created excess liquidity in the banking system.
An expansionary fiscal stance will support the economy, while fiscal reforms can improve the effectiveness of policy and mitigate risks. The focus in the near term should be overcoming capacity constraints to execute much needed public investment, including climate-related projects.
Maintaining PFM controls over the DDP, including through the election cycle, remains a priority. Improving fiscal data and implementing further PFM reforms can also help improve policy formulation, implementation, and credibility. Fully reversing the pandemic-era utility tariff cuts, while implementing any support for low-income households transparently through the budget, can help address lingering weakness in some SOEs while protecting the vulnerable.
Monetary policy normalization should continue, with an aim to guide interest rates higher. The exchange rate peg remains the appropriate nominal anchor. However, to guard against domestic inflation risks, monetary policy should aim to reduce excess liquidity to reasonable levels and push real short-term rates to positive territory.
Further strengthening financial supervision and regulation, including for PFIs, should be a priority. Financial sector risks have declined relative to the pandemic but require continued monitoring. Priorities for the banking system include operationalizing the emergency liquidity assistance framework and enhancing prudential standards. Upgrading governance and prudential regulations for PFIs is also needed to contain potential risks. Establishing an online credit registry will help advance financial inclusion.
A multi-pronged approach can help mitigate CBR pressures. Strengthening the AML/CFT legal framework and implementing effective risk-based supervision will help prepare Samoa for its APG mutual evaluation in 2027. Ensuring the timely rollout of the e-KYC facility and the National Digital ID will help improve customer due diligence. Given low ML/TF risks from remittance payments, effort should be made to streamline regulatory and supervisory requirements on both sides of main remittance corridors.
Overcoming significant structural challenges which impede the medium-term growth potential will require concerted reform efforts. Key priorities include attracting foreign investment, reducing trade facilitation costs, and mitigating the impact of the pickup in the seasonal workers program, including by enhancing human capital and raising labor force participation rates.
Table 1. Samoa: Selected Economic and Financial Indicators 1/
Proj.
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
Output
and
Inflation(12-month percent change)
Real GDP
-7.0
-5.4
9.2
9.4
5.5
2.8
2.1
2.0
2.0
Nominal GDP
-7.5
0.0
18.0
14.9
8.7
6.0
5.2
5.0
5.1
Consumer price
index
(end of period)4.1
10.8
10.7
0.8
3.5
2.6
3.0
3.0
3.0
Consumer price
index
(period average)-3.0
8.7
12.0
3.6
3.1
3.0
3.0
3.0
3.0
Central Government Finances
(In percent of GDP)
Revenue
and grants36.5
38.5
34.1
36.0
33.0
32.0
31.5
31.5
31.4
Of which: Grants
6.8
9.4
4.5
6.2
4.2
4.0
4.0
4.0
4.0
Expenditure
34.7
33.1
31.0
25.9
33.1
33.5
33.4
33.5
33.6
Of which: Expense
31.3
32.2
27.5
25.7
27.9
28.3
28.2
28.3
28.2
Of which: Net acquisition
of non-financial assets3.4
0.9
3.5
0.3
5.2
5.2
5.2
5.2
5.4
Overall balance
1.7
5.4
3.0
10.1
-0.1
-1.5
-1.9
-2.0
-2.2
Gross debt outstanding
46.3
43.7
33.3
27.7
22.5
19.3
20.4
21.5
22.6
Money
and
Credit Aggregates(12-month percent change)
Broad
money (M2)8.1
2.2
16.3
7.7
7.5
6.0
6.0
6.0
6.0
Private
sector
credit, commercial banks1.5
0.2
-2.6
3.5
4.0
5.0
5.0
5.0
5.0
Private
sector
credit,
other financial corporations-0.9
4.9
2.9
8.2
…
…
…
…
…
Private
sector
credit,
total
financial system2.0
0.6
-0.1
3.7
…
…
…
…
…
Private Sector Credit
(In percent of GDP)
Commercial banks
53.1
53.2
43.9
39.5
…
…
…
…
…
Total financial system
94.0
94.6
80.1
72.3
…
…
…
…
…
Bank Financial Soundness
Regulatory capital to risk-
weighted assets, ratio28.1
28.8
33.2
29.0
…
…
…
…
…
Non-performing loans to
total gross loans, ratio3.7
4.6
4.7
4.6
…
…
…
…
…
Balance of Payments
(In percent of GDP)
Current account balance
-14.5
-11.3
-3.3
4.0
-0.5
-1.2
-1.3
-1.6
-2.0
Merchandise exports,
f.o.b.4.1
3.8
4.6
3.5
3.4
3.5
3.5
3.5
3.7
Merchandise imports, f.o.b.
37.8
41.4
47.1
41.3
43.0
42.9
42.7
42.5
42.5
Services
(net)-3.9
-2.9
10.8
17.6
16.4
16.0
16.0
16.0
16.0
Of which: Tourism receipts
0.0
0.0
16.4
21.0
21.9
21.5
21.5
21.5
21.5
Income
(net)-1.7
-2.6
-1.3
-2.3
-2.7
-2.8
-2.8
-2.8
-2.8
Current transfers
(net)24.8
31.7
29.6
26.4
25.4
25.1
24.6
24.1
23.7
External Reserves and Debt
Gross
official reserves (million
U.S.
dollars) 2/288.5
303.2
401.7
494.3
503.8
506.2
523.9
542.9
557.5
(in months
of next
year’s imports)7.9
6.4
8.3
9.0
8.8
8.5
8.5
8.3
8.2
External
debt (in percent of GDP)46.1
43.6
33.3
25.9
20.9
17.8
19.0
20.3
21.5
Exchange Rates
Market rate (tala/U.S. dollar,
period average)2.57
2.61
2.73
2.76
…
…
…
…
…
Real
effective exchange
rate-0.5
6.4
9.2
-0.6
…
…
…
…
…
(12-month percent change) 3/
Memorandum items:
Nominal GDP
(million
tala)2,169
2,170
2,562
2,943
3,200
3,391
3,568
3,748
3,938
GDP per capita (U.S. dollars)
4,136
4,032
4,498
5,070
5,474
5,728
5,945
6,160
6,440
Sources: Data provided by the Samoan authorities; and IMF staff estimates and projections.
1/ Fiscal years July-June.
2/ Incorporates August 2021 SDR allocation.
3/ Increase signifies appreciation.
[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Pemba Sherpa
Phone: +1 202 623-7100Email: MEDIA@IMF.org
-
MIL-OSI Economics: ICC announces new editorial board for Dispute Resolution Bulletin
Source: International Chamber of Commerce
Headline: ICC announces new editorial board for Dispute Resolution Bulletin
The International Chamber of Commerce (ICC) has appointed new co-editors-in-chief and editorial board members of the ICC Dispute Resolution Bulletin. The Bulletin is ICC’s flagship, triannual journal focused on arbitration and other methods of dispute resolution. Editorial board members are highly-regarded dispute resolution practitioners from around the world, with diverse backgrounds. With their involvement, the Bulletin will remain one of the most essential go-to resources on dispute prevention and resolution.
Since the first edition in 1990, the Bulletin has been at the forefront of providing up-to-date developments in international arbitration and commentaries on ICC dispute resolution and arbitral awards. The Bulletin offers legal updates, expert insights and studies, best practices and analysis of ICC awards. It also reports on ICC events and trainings, and features book reviews for dispute resolution practitioners.
Claudia Salomon, President of the ICC International Court of Arbitration, said:
“In line with the ICC Court pledge to drive thought leadership, the new co-editors in chief and editorial board members will ensure that the Bulletin continues to generate innovative ideas, and build capacity, offering readers a greater understanding of the arbitration and ADR process.”
Alexander G. Fessas, Director of ICC Dispute Resolution Services and Secretary General of the ICC Court, said:
“As the leading institution in dispute resolution, ICC plays a critical role in promoting access to justice and the rule of law. The Bulletin serves as a vital platform for analysis and debate, fostering the safeguard of the legitimacy of arbitration and ADR, and maximising the potential of all in the legal and business communities. We are confident that, with the new editorial board, the Bulletin’s relevance and reach will continue to grow exponentially.”
The Bulletin’s gender-balanced editorial board comprises 20 members based in Africa, Asia and the Pacific, Europe, Latin America, the Middle East and the United States.
The Bulletin is led by two co-editors-in-chief: Rafael Rincón, a partner at Rincón Castro Abogados in Colombia, and Sara Nadeau Seguin, a partner at Teynier Pic in France. Both were members of the board during the previous mandate. They succeed Julien Fouret and Yasmine Lahlou, who were appointed as members of the ICC Court in July 2024.
The 2025-2027 ICC Bulletin editorial board members are:
- Sara Nadeau Seguin, Co-Editor in Chief, Partner, Teynier Pic, France
- Rafael Rincón, Co-Editor in Chief, Partner, Rincón Castro Abogados, Colombia
- Aysha Abdulla Mutaywea, Partner, MENA Chambers, Bahrain
- Marie-Isabelle Delleur, Counsel, Clifford Chance, Brazil
- *Farouk El-Hosseny, Senior Associate, Three Crowns, United Kingdom
- *Ahmed Habib, Senior Associate, DWF, Qatar
- *Imad Khan, Partner, Winston & Strawn, United States of America (Houston)
- Monserrat Manzano, Partner, Von Wobeser, Mexico
- Alexandre Mazuranic, Partner, BMG Avocats, Switzerland
- *Damien Nyer, Partner, White & Case, United States of America (New York)
- *Olena Perepelynska, Partner and Head of International Arbitration, Integrites, Ukraine
- *Sulabh Rewari, Partner, Keystone, India
- *Michele Sabatini, Partner, Arblit, Italy
- Mikaël Schinazi, Associate, Jones Day, France
- Anna Secomb, Arbitrator, Singapore
- *Leyou Tameru, Founder, I-Arb Africa, Ethiopia
- Mireille Taok, International Arbitrator, Lawyer, and University Lecturer, United Arab Emirates
- Monty Taylor, Barrister, Tenth Floor Chambers, Australia
- Sylvia Tee, Partner, Ashurst, China
- *Angeline Welsh, Barrister, Essex Chambers, United Kingdom
* Member during the previous mandate, which is renewable once.
The Bulletin is published three times a year with the next edition due in March 2025. The latest edition of the ICC Dispute Resolution Bulletin is freely available for download in the ICC Dispute Resolution Library.
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MIL-OSI Economics: New AI Hub coming in partnership with State of New Jersey, Princeton University and CoreWeave
Source: Microsoft
Headline: New AI Hub coming in partnership with State of New Jersey, Princeton University and CoreWeave
Major artificial intelligence Hub will bolster state’s innovation economy
Microsoft, CoreWeave, New Jersey Economic Development Authority and Princeton University expected to invest over $72 million to support the long-term success of the Hub
TRENTON, N.J. (Jan. 31, 2025) – Governor Phil Murphy and Princeton University President Christopher L. Eisgruber on Friday announced that Microsoft and CoreWeave will join the state and Princeton as founding partners in the NJ AI Hub. The NJ AI Hub will serve as a state-of-the-art, collaborative ecosystem that integrates world-class research, innovation, education and workforce development. As part of this investment in the NJ AI Hub, Microsoft will leverage its TechSpark program to provide expertise and resources for AI skilling and workforce development to create opportunities for innovation in New Jersey and the region.
The NJ AI Hub will help position New Jersey as a leading East Coast center for AI innovation. It will be located along Route 1 — New Jersey’s innovation corridor — at 619 Alexander Road in Princeton, in space provided by Princeton University.
“As the AI industry rapidly evolves, it’s imperative that we capitalize on this moment in New Jersey. I’m incredibly proud of this partnership with the top leaders in the industry and higher education, which further establishes our state as a hub for cutting-edge AI innovation and talent,” said Governor Murphy. “AI’s economic and innovation potential is vast, giving us the chance to take our state to new heights. This partnership will not only solidify New Jersey’s position as a global technology leader, it will also attract high-paying, sustainable jobs for our residents, allowing for a stronger and more prosperous future for our state.”
“The addition of Microsoft and CoreWeave as founding partners of the NJ AI Hub demonstrates how government, higher education and the corporate sector are coming together to advance AI innovation and the regional innovation ecosystem — two of Princeton’s highest priorities,” President Eisgruber said. “I’m eager to see many of the state’s other excellent colleges and universities join this effort as its development continues.”
“New Jersey has long been at the forefront of American innovation, and AI is the next chapter of this journey,” said Brad Smith, Vice Chair and President of Microsoft. “By leveraging the strengths of the private sector, Princeton and the state of New Jersey, our goal is to build a thriving regional AI economy that not only drives economic growth but sets a new standard for research, development and workforce development.”
“This collaboration represents the best of what private-public partnerships can achieve, bringing together the brightest minds from government, academia, the business community and our team of experts to foster groundbreaking AI innovation in New Jersey,” said Brian Venturo, Co-Founder and Chief Strategy Officer at CoreWeave. “Together, we’re advancing the future of technology while driving meaningful economic growth and strengthening New Jersey’s role as a leader in the global AI landscape. New Jersey is our home, and we’re excited to continue our partnership with the state by making it a leader in AI advancement.”
“AI is rapidly evolving, and New Jersey is capitalizing on this moment to cement our place as a national leader in the industry. By bringing together world-class leaders like Princeton, Microsoft and CoreWeave, Governor Murphy is building upon the Garden State’s long-standing legacy in innovation and helping advance cutting-edge AI technologies,” said New Jersey Economic Development Authority Chief Executive Officer Tim Sullivan. “The opportunity presented by AI aligns with Governor Murphy’s vision for cultivating high-growth sectors, with the goal of creating family-sustaining career opportunities. Showcasing New Jersey’s bustling innovation community, talent pool and robust resources will help AI companies recognize the state’s value proposition for growing innovative companies of the future.”
Microsoft, CoreWeave, the NJEDA and Princeton University are founding equity partners in the newly created NJ AI Hub. Together, they expect to invest over $72 million to support the long-term success of the Hub, including up to $25 million of nonbinding commitment from the NJEDA.
A portion of NJEDA’s and CoreWeave’s committed funding will include a planned NJ AI Venture Fund that will support innovation commercialization through equity investments.
Microsoft, CoreWeave, the NJEDA, and Princeton University will focus on the following three pillars of programming at the NJ AI Hub:
- Research and development:
The NJ AI Hub will help companies across a range of industry sectors integrate and apply AI in their businesses and use it to advance their research and development efforts. The Hub will focus on applications of AI in several industry sectors that have strong footprints in New Jersey, such as the life sciences, clean energy and climate resilience, telecommunications and cybersecurity, and infrastructure and logistics. The NJ AI Hub will also actively engage New Jersey’s research universities on applied research in AI and will host events to connect companies developing and using AI tools with cutting-edge research and potential collaborators. - Commercializing and accelerating innovation:
An AI accelerator will be operated at the NJ AI Hub, which will help facilitate the growth of the early-stage AI ecosystem in New Jersey. The accelerator will host cohorts of startup ventures and will provide them with essential support services such as workspace, compute power, legal assistance and business development advice. In addition, these startups will have coordinated access to the NJ AI Hub’s corporate partners for mentorship and networking opportunities. - Strengthening AI education and workforce development:
The Hub will work closely with New Jersey’s higher education community to promote high-quality talent development at all levels and will leverage the resources of Microsoft’s TechSpark program. By developing shared curricula, projects and teaching tools for AI courses; training community college faculty in teaching AI; and creating upskilling opportunities to help workers across disciplines apply AI in their work, the Hub will coordinate efforts to build the state’s pool of AI talent. Ongoing collaboration with employers will ensure that education and training programs are providing trainees with industry-recognized credentials and in-demand skills for the workforce. The NJ AI Hub will also be able to connect employers with opportunities to host AI apprenticeships, develop customized upskilling training for their workers, recruit talent from New Jersey schools for jobs and internships, and partner with project-based AI courses at the college and graduate level.
Through this new AI Hub, Microsoft will be bringing its TechSpark program to New Jersey. Founded in 2017, Microsoft TechSpark fosters inclusive economic opportunity across the U.S., including job creation and innovation, by working in communities and investing in local organizations. TechSpark operates across all 50 states and to date has helped secure more than $700 million in community funding for local innovation, trained 65,000 people in critical technology skills, and created 4,500 jobs.
Plans for an AI Hub were announced by Governor Murphy and President Eisgruber in 2023. Pending NJEDA Board approval, the NJ AI Hub will be supported through the NJEDA’s Strategic Innovation Center (SIC) initiative. The NJEDA has executed a nonbinding term sheet to support the NJ AI Hub’s operating budget for up to five years. In total, the NJEDA is anticipated to invest up to $25 million to support the NJ AI Hub and the NJ AI Venture AI Fund.
For further updates, please visit the NJ AI Hub website at njaihub.org.
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
For more information, press only:
Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777,
[email protected] - Research and development:
-
MIL-OSI Economics: IMF Executive Board Concludes the 2024 Article IV Consultation with the Republic of Kazakhstan
Source: International Monetary Fund
January 31, 2025
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the 2024 Article IV consultation[1] with the Republic of Kazakhstan on a lapse of time basis on November 27, 2024.
After reaching 5.1 percent in 2023, Kazakhstan’s economic growth has remained robust in 2024, and inflation has continued to decline gradually. The banking sector remains resilient amid continued rapid consumer credit growth. In the medium term, growth is projected to stabilize at about 3½ percent, while inflation would ease further and reach its 5 percent target by 2028.
The National Bank of Kazakhstan has maintained a prudent monetary policy in light of persisting inflation pressures from increased energy tariffs and fiscal underperformance: as of September 2024, tax revenues were only 60½ percent of the 2024 budget plan, implying an expansionary fiscal stance. The macroprudential policy and risk-based supervisory frameworks are being strengthened in line with the 2023 FSAP recommendations.
Structural reform implementation remains slow, with the state footprint growing in some areas, while higher economic growth, diversification and resilience will be important in the current environment, including to address increasingly pressing challenges from climate change.
Executive Board Assessment[2]
In concluding the Article IV consultation with the Republic of Kazakhstan, Executive Directors endorsed the staff’s appraisal as follows:
Robust economic growth and disinflation have continued this year. Growth is projected at 3.9 percent in 2024 due to broad-based acceleration of economic activity in the second half of the year. Inflation is expected to reach 8.2 percent, still above its 5 percent target, as the pace of disinflation has slowed this year due to increased domestic energy tariffs and an expansionary fiscal policy. On the external front, a moderate current account deficit is expected in 2024, and the external position is assessed as moderately weaker than implied by economic fundamentals and desirable policies.
Risks to the outlook remain tilted to the downside. They include external risks from a slowdown in major economies, an intensification of regional conflicts, secondary sanctions, and higher commodity price volatility or export pipeline disruptions. On the domestic front, key risks are delays in large infrastructure projects in the short term, failure to reintroduce fiscal discipline which could fuel inflation pressures, and a resurgence of social tensions. Upside risks include accelerated reform implementation, higher oil prices, and stronger foreign investment in new sectors.
Monetary policy should remain tight until inflation is close to target, and its effectiveness could be further strengthened. The combination of robust growth, slowing disinflation, and an uncertain outlook justify continued monetary policy prudence. In order to enhance the National Bank of Kazakhstan (NBK)’s institutional independence and monetary policy effectiveness, its governance and legal framework can be further improved, and the NBK should refrain from foreign exchange interventions in the absence of disorderly market conditions.
Recurrent fiscal underperformance requires measures to avoid fiscal procyclicality and strengthen the fiscal policy framework. Such measures would also help to meet the authorities’ objective of fiscal consolidation and maintain a balanced external position. Priorities are to improve macro-fiscal forecasts and budget planning, and to use the introduction of new tax and budget codes as opportunities to enhance non-oil revenue mobilization, including through gradual VAT rate increases, and spending efficiency. Fiscal policy effectiveness also requires public sector data that are better aligned with international standards and a more rules-based and transparent policy framework, including by reducing off-budget spending and the continued reliance on discretionary transfers from the National Fund.
The banking sector remains resilient and rapid progress in implementing the 2023 FSAP recommendations is commendable. In particular, the regulatory agency (ARDFM)’s institutional independence and risk-based supervision, as well as the NBK’s macroprudential policy mandate and toolkit, have been significantly enhanced. Going forward, the main priority is to introduce a fully-fledged framework for bank resolution, including coordination mechanisms among the ARDFM, NBK and relevant ministries.
Structural reform implementation is critical to elevate long-term economic growth. To meet the authorities’ ambitious growth objectives, a key priority is to reduce the state footprint in the economy and promote competition and private sector development. However, the amount and size of state interventions, subsidies, state-owned enterprises, and external restrictions have recently increased. Stronger public governance is also required, including through continued efforts to reduce corruption-related vulnerabilities.
Given increasingly pressing challenges from climate change, more comprehensive policies are needed to accelerate the transition to a sustainable and resilient economic model and meet the authorities’ commitment to reduce carbon emissions. Building on recent progress, including in implementing the national strategy for carbon neutrality, priorities are to modernize energy infrastructure, enhance energy efficiency, accelerate fossil fuel subsidy reforms, and adopt measures to transform high-emission sectors, manage climate-related risks in the financial sector, and address the needs of vulnerable groups.
Table 1. Kazakhstan: Selected Economic Indicators, 2022–26
Proj
2022
2023
2024
2025
2026
GDP
(Percent)
Real GDP
3.2
5.1
3.9
5.0
3.9
Real Oil GDP
-1.7
7.0
-0.6
8.8
4.4
Real Non-Oil GDP
4.6
4.6
5.1
4.0
3.8
Inflation
Headline (EOP)
20.4
9.7
8.2
7.2
6.2
General government fiscal accounts
(Percent
of GDP)
Revenues and grants
21.8
21.7
19.5
18.5
19.0
Oil revenues
8.0
5.7
5.8
5.7
5.1
Non-oil revenues 1/
13.8
16.0
12.7
12.7
13.9
Expenditures and net lending
21.7
23.2
22.1
21.6
21.2
Overall fiscal balance
0.1
-1.5
-2.6
-3.1
-2.2
Non-oil fiscal balance
-7.9
-7.2
-8.4
-8.9
-7.3
Gross public debt
23.5
22.8
24.0
25.5
28.2
Net public debt
-1.2
0.1
2.6
4.5
5.7
Monetary accounts
Reserve money
11.4
11.6
11.9
12.0
11.5
Broad money
33.1
34.0
34.6
35.0
35.4
Credit to the private sector
22.7
23.5
24.1
25.0
26.1
Balance of payments
Current account balance
3.1
-3.3
-1.5
-2.3
-2.3
Financial account balance 2/
2.6
-0.6
-2.8
-3.0
-2.5
Exchange rates
(Units)
Exchange rate KZT/USD (EOP)
461.0
453.6
…
…
…
Memorandum items
(Various
Units)
Reserves Assets (USD billion)
35.1
35.9
40.2
43.2
44.5
In months of following year imports of G&S
5.8
5.9
6.5
6.7
6.6
NFRK assets (percent of GDP)
24.7
22.7
21.4
21.0
22.5
External debt (percent of GDP)
71.2
61.3
58.4
57.6
56.4
NBK policy rate (EOP, percent)
16.8
16.6
…
…
…
Crude oil and gas cond. prod. (million tons) 3/
84.2
90.0
89.6
97.3
101.5
Unemployment rate (AVG, percent)
4.9
4.7
4.7
4.6
4.6
Sources: Kazakhstani authorities and IMF staff estimates and projections.
1/ Non-oil revenue in 2023 includes a one-off dividend from Samruk-Kazyna of 1.1 percent of GDP and in 2024 includes a one-off dividend from Kazatomprom of 0.3 percent of GDP from the sale of shares to the NFRK.
2/ Excluding reserve movements.
3/ Based on a conversion factor of 7.5 barrels of oil per ton.
[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without conveying formal discussions.
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Angham Al Shami
Phone: +1 202 623-7100Email: MEDIA@IMF.org
-
MIL-OSI Economics: Benin: An African Pioneer
Source: International Monetary Fund
Benin: An African Pioneer
January 31, 2025
Innovation and a strong reform drive have strengthened Benin’s resilience to regional and global challenges and supported progress toward meeting the Sustainable Development Goals.
Benin faced a number of negative spillovers in 2022: a deteriorating regional security situation at its northern border, the lingering scars of COVID-19, and higher living costs amid the war in Ukraine. To help counter those headwinds, the country tapped IMF support, including a $650 million blended Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangement, complemented by a $200 million Resilience and Sustainability Facility (RSF) in 2023. Development partners’ confidence in the country’s reform program has been reflected in budget support consistently exceeding expectations. Moreover, Benin was among the first countries to re-access the international capital market last year, following a two-year hiatus, with several sovereign credit rating upgrades in recent years.
Despite challenges, there are promising signs of economic transformation. Among other achievements, growth has been strong, fiscal adjustment is proceeding while allowing for a significant increase in social spending, and efforts to strengthen governance are gaining ground.
Following the combined Fifth Review of the ongoing EFF/ECF arrangement and Second Review of the RSF, IMF Country Focus discussed the country’s economic performance with Romuald Wadagni, Senior Minister of State of Economy and Finance for Benin, and Constant Lonkeng, IMF Mission Chief for Benin.
How is the current reform program affecting the daily lives of Beninese people?
Finance Minister Wadagni: First and foremost, our ongoing reform program has allowed us to navigate an episode of severe and repeated shocks, with technical and financial support from our development partners. As a result, our economy has shown remarkable resilience, with growth averaging more than 6.5 percent in recent years.
Economic resilience is helping harness the potential of Benin’s people. A key focus of our reform program is enhancing human capital, as articulated under our people-centric Government Action Program (PAG 2021–26).
Our Integrated School Feeding Program currently provides free meals to students in 95 percent of elementary schools in rural areas (more than 1.3 million children), with full coverage targeted this year. Lower education is now tuition-free for girls across all of Benin’s 77 communes (estimated 2 million girls), with an ongoing pilot to extend to upper secondary school. We are also putting emphasis on technical education and vocational training to prepare our large youth population to seize job opportunities in high value-added activities.
More broadly, our flagship Insurance for Human Capital Enhancement (ARCH) seeks to foster social resilience through various programs including micro-credits, access to healthcare, and pensions. The social registry—established early on under the EFF/ECF with World Bank technical support—is an essential tool for targeting our support to the most vulnerable.
How has IMF engagement supported the authorities’ policy agenda?
IMF Mission Chief Lonkeng: One key design consideration of Benin’s IMF-supported program was balancing financing and fiscal adjustment in a shock-prone environment. Considering Benin’s established track record in macroeconomic management, we opted for a flexible design—a vote of confidence from the IMF.
Frontloaded financing supported the country’s appropriately strong counter-cyclical policy response to severe shocks—the IMF disbursed more than 40 percent of the total financing envelope of about 400 percent of Benin’s quota in the first 6 months of the 42-month program to smooth out fiscal adjustment. The EFF/ECF was subsequently complemented by an RSF (120 percent of Benin’s quota) to help enhance the country’s overall socio-economic resilience.
The authorities have since been re-building policy space, with domestic revenue mobilization being a key part of this effort and, more broadly, the cornerstone of the authorities’ reform program. A frontloaded tax policy reform under the program complemented efforts to digitalize the tax system to boost revenue collection. As the chart shows, Benin’s tax-to-GDP ratio increased by more than 2 percentage points during 2022–24, far exceeding the average improvement of other countries in this timeframe.
There are promising signs of economic transformation. How are you achieving this and what lessons did you learn along the way?
Finance Minister Wadagni: We first conducted an in-depth diagnostic of our economic and financial situation about a decade ago. We then embarked on a first wave of reforms to lay the foundations for structural transformation, cognizant of the fact that sound public finances, reliable energy, and infrastructure—including digital—are key prerequisites for sustained economic expansion.
The ongoing second wave of reforms seek to consolidate our initial achievements and climb up value chains by processing commodities locally. The Glo-Djigbé Industrial Zone—which is dedicated to the local transformation of agricultural products including cotton, cashews, and soybeans—plays a strategic role in this regard. We intend to further develop the zone and, more broadly, pursue the structural transformation of our economy, including through continued modernization and enhanced resilience of agriculture. We will also step up investment in unlocking Benin’s tourism potential and modernizing the Port of Cotonou.
In doing all of the above, we will expand the social safety nets to reach as many vulnerable people as possible. A key lesson from our experience so far is that sound governance is critical in economic transformation.
Benin innovated with the issuance of the first Social Development Goal (SDG) bond in the region – and is now extending this framework to catalyze private climate finance. Can you elaborate?
Finance Minister Wadagni: We developed an SDG bond framework around the country’s social and climate priorities as an integral part of our development finance strategy. The framework was initially used to issue a €500 million SDG bond in 2021, a first in the region. It has since facilitated the financing of key social and energy transition projects. We intend to leverage the SDG bond framework to catalyze financing for climate change adaptation, resilient agriculture, sustainable ecosystem management, and the energy transition.
Relatedly, we secured climate financing pledges from our partners during the recent COP29, following the climate finance roundtable that we co-convened in Cotonou with the IMF and the World Bank.
What has been the key to program engagement in your view, and what do you see as the main challenges ahead?
IMF Mission Chief Lonkeng: First and foremost, program ownership has been key. Benin has an established tradition of public consultation around the country’s reform agenda—under the National Development Plan and the Government Action Program. The Fund-supported program therefore had a solid homegrown foundation to build on.
Going forward, continued expansion of the tax base, drawing on the country’s recently developed medium-term revenue strategy, would help fund Benin’s large development needs (the country’s median age is 18), and improve the country’s capacity to carry debt and preserve debt sustainability.
On the structural front, a continued move away from the traditional transit-centered growth model—supported by a balanced social contract—would foster private sector job creation in higher value-added activities for the large youth population. Enhancing resilience to climate change and maintaining the digitalization drive would also support overall socio-economic resilience in the long-term. All of this would help raise the living standards of the Beninese in a sustained and inclusive manner.
-
MIL-OSI Economics: Lending and Deposit Rates of Scheduled Commercial Banks – January 2025
Source: Reserve Bank of India
Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) received during January 2025 are set out in Tables 1 to 7.
Highlights:
Lending Rates:
-
The weighted average lending rate (WALR) on fresh rupee loans of SCBs declined to 9.25 per cent in December 2024 from 9.40 per cent in November 2024.
-
The WALR on outstanding rupee loans of SCBs moderated to 9.87 per cent in December 2024 from 9.89 per cent in November 2024.1
-
1-Year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs remained unchanged at 9.00 per cent in January 2025.
Deposit Rates:
-
The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.57 per cent in December 2024 as compared to 6.46 per cent in November 2024.
-
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was 7.00 per cent in December 2024 (6.98 per cent in November 2024).1
Ajit Prasad
Deputy General Manager
(Communications)Press Release: 2024-2025/2060
-
-
MIL-OSI Economics: RBI imposes monetary penalty on Equitas Small Finance Bank Limited
Source: Reserve Bank of India
The Reserve Bank of India (RBI) has, by an order dated January 20, 2025, imposed a monetary penalty of ₹65 lakh (Rupees Sixty Five Lakh only) on Equitas Small Finance Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Levy of Foreclosure Charges/Pre-payment Penalty on Floating Rate Term Loans’ and ‘Credit Flow to Agriculture – Collateral free agricultural loans’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with RBI directions.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank:
-
levied foreclosure charges on certain floating rate term loans sanctioned to individual borrowers for purposes other than business; and
-
obtained collateral security for certain agricultural loans amounting up to ₹1.6 lakh.
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Chief General ManagerPress Release: 2024-2025/2061
-
-
MIL-OSI Economics: RBI imposes monetary penalty on India Post Payments Bank Limited
Source: Reserve Bank of India
The Reserve Bank of India (RBI) has, by an order dated January 15, 2025, imposed a monetary penalty of ₹26.70 lakh (Rupees Twenty Six Lakh Seventy Thousand only) on India Post Payments Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Customer Service in Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47 A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with RBI directions.
After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank upgraded certain Savings Bank accounts without obtaining customers’ consent (in writing or through any other mode) and also levied annual charges after upgradation of those accounts.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Chief General ManagerPress Release: 2024-2025/2062
-
MIL-OSI Economics: Phillips 66 Reports Fourth-Quarter Results and Announces Next Phase of Strategic Initiatives
Source: Phillips
Fourth Quarter
Reported fourth-quarter earnings of $8 million or $0.01 per share; adjusted loss of $61 million or $0.15 per share
Earnings impacted by $230 million pre-tax of accelerated depreciation related to Los Angeles Refinery
Returned $1.1 billion to shareholders through dividends and share repurchases
Record NGL fractionation and LPG export volumes in Midstream
Record clean product yield in Refining
Surpassed targeted $3 billion in announced asset dispositions
Full-Year 2024
Earnings of $2.1 billion or $4.99 per share and adjusted earnings of $2.6 billion or $6.15 per share
$4.2 billion of operating cash flow, $4.8 billion excluding working capital
$5.3 billion returned to shareholders through dividends and share repurchases
Second consecutive year above industry-average crude utilization
Achieved $1.5 billion in run-rate business transformation savings and $500 million in synergy capture from successful DCP integrationHOUSTON–(BUSINESS WIRE)– Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced fourth-quarter earnings.
“During the fourth quarter, we achieved our strategic priority targets for shareholder distributions and asset dispositions,” said Mark Lashier, chairman and CEO. “We also delivered on our goal of improving Refining performance by continuing to run above industry-average crude utilization, setting record clean product yields and achieving our targeted cost reductions of $1 per barrel.
“In support of our Midstream wellhead-to-market strategy, we recently announced an agreement to acquire EPIC’s NGL business, bolstering our Permian and Gulf Coast footprint,” said Lashier. “Upon closing, these assets will be accretive to earnings and highly integrated with our existing infrastructure, providing additional opportunities to enhance returns and shareholder value.”
Lashier added, “Building on our successes, I am pleased to announce that we have set new financial and operational targets that prioritize debt reduction, a lowered cost structure and EBITDA growth. Supported by world-class operations, we are committed to returning over 50% of operating cash flow to shareholders.”
On behalf of the Board of Directors, Glenn Tilton, lead independent director, remarked, “2024 was a pivotal year for Phillips 66. The team executed well on an ambitious set of strategic priorities, substantially improving the company’s competitiveness, and is well positioned to successfully deliver on a new set of targets through 2027.”
Financial Results Summary (in millions of dollars, except as indicated)4Q 2024
3Q 2024
Earnings
$
8
346
Adjusted Earnings (Loss)1
(61)
859
Adjusted EBITDA1
1,130
1,998
Earnings (Loss) Per Share
Earnings Per Share – Diluted
0.01
0.82
Adjusted Earnings (Loss) Per Share – Diluted1
(0.15)
2.04
Cash Flow From Operations
1,198
1,132
Cash Flow From Operations, Excluding Working Capital1
901
1,513
Capital Expenditures & Investments2
506
358
Return of Capital to Shareholders
1,119
1,277
Repurchases of common stock
647
800
Dividends paid on common stock
472
477
Cash
1,738
1,637
Debt
20,062
19,998
Debt-to-capital ratio
41%
40%
Net debt-to-capital ratio1
39%
38%
1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
2Excludes net acquisitions of $58 million and $567 million in the fourth and third quarters of 2024, respectively, and purchases of government obligations of $1.1 billion in the third quarter of 2024.
Segment Financial and Operating Highlights (in millions of dollars, except as indicated)
4Q 2024
3Q 2024
Change
Earnings (Loss)1
$
8
346
(338)
Midstream
673
644
29
Chemicals
107
342
(235)
Refining
(775)
(108)
(667)
Marketing and Specialties
252
(22)
274
Renewable Fuels
28
(116)
144
Corporate and Other
(298)
(327)
29
Income tax (expense) benefit
38
(44)
82
Noncontrolling interests
(17)
(23)
6
Adjusted Earnings (Loss)1,2
$
(61)
859
(920)
Midstream
708
672
36
Chemicals
72
342
(270)
Refining
(759)
(67)
(692)
Marketing and Specialties
185
583
(398)
Renewable Fuels
28
(116)
144
Corporate and Other
(294)
(327)
33
Income tax (expense) benefit
16
(205)
221
Noncontrolling interests
(17)
(23)
6
Adjusted EBITDA2
$
1,130
1,998
(868)
Midstream
938
892
46
Chemicals
209
466
(257)
Refining
(298)
188
(486)
Marketing and Specialties
307
656
(349)
Renewable Fuels
50
(92)
142
Corporate and Other
(76)
(112)
36
Operating Highlights
Pipeline Throughput – Y-Grade to Market (MB/D)3
759
762
(3)
Chemicals Global O&P Capacity Utilization
98%
98%
—%
Refining
Turnaround Expense
123
137
(14)
Realized Margin ($/BBL)2
6.08
8.31
(2.23)
Crude Capacity Utilization
94%
94%
—%
Clean Product Yield
88%
87%
1%
Renewable Fuels Produced (MB/D)
42
44
(2)
1Segment reporting is pre-tax.
2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
3Represents volumes delivered to major fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66’s direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC
Fourth-Quarter 2024 Financial Results
Reported earnings were $8 million for the fourth quarter of 2024 versus $346 million in the third quarter. Fourth-quarter earnings included pre-tax special item adjustments of $67 million in the Marketing and Specialties segment, $35 million in the Chemicals segment, $(35) million in the Midstream segment, $(16) million in the Refining segment, and $(4) million impacting the Corporate and Other segment. Adjusted losses for the fourth quarter were $61 million versus earnings of $859 million in the third quarter.
Midstream fourth-quarter 2024 adjusted pre-tax income increased compared with the third quarter mainly due to higher NGL margins and volumes.
Chemicals adjusted pre-tax income decreased mainly due to lower margins, as well as higher turnaround and maintenance costs.
Refining adjusted pre-tax loss increased primarily due to a decline in realized margins largely driven by lower market crack spreads and accelerated depreciation associated with the planned ceasing of operations at the Los Angeles Refinery, partially offset by a higher clean product yield.
Marketing and Specialties adjusted pre-tax income decreased primarily due to seasonally lower margins.
Renewable Fuels pre-tax results increased primarily due to higher margins at the Rodeo Complex and stronger international results.
Corporate and Other adjusted pre-tax loss decreased mainly due to lower net interest expense and employee-related costs, partially offset by depreciation expense.
As of Dec. 31, 2024, the company had $1.7 billion of cash and cash equivalents and $4.6 billion of committed capacity available under credit facilities.
Strategic Priorities Update
Phillips 66 successfully delivered on its strategic priorities first announced in October 2022. The company remains committed to leveraging its integrated portfolio to enhance long-term shareholder value and is announcing its next phase of priorities through 2027. Highlights include:
Delivering shareholder returns by returning greater than 50% of operating cash flow to shareholders;
Executing world-class operations by achieving 2% higher than industry-average crude utilization and targeting annual adjusted controllable costs of $5.50 per barrel in Refining, excluding adjusted turnaround expense;
Delivering disciplined growth and returns by growing Midstream and Chemicals mid-cycle adjusted EBITDA $1 billion in total by 2027; and
Maintaining financial strength and flexibility by reducing total debt to $17 billion.
Additional details will be covered in our investor webcast.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s fourth-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Use of Non-GAAP Financial Information —This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings (loss) per share,” “refining realized margin per barrel,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
References in the release to earnings refer to net income attributable to Phillips 66. References to run-rate business transformation savings include cost savings and other benefits that will be captured in the sales and other operating revenues impacting gross margin; purchased crude oil and products costs impacting gross margin; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income when realized. Run-rate savings include run-rate sustaining capital savings. Run-rate sustaining capital savings include savings that will be captured in the capital expenditures and investments on our consolidated statement of cash flows when realized.
Basis of Presentation — Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
In the third quarter of 2024, we began presenting the line item “Capital expenditures and investments” on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 —This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies or laws that relate to our operations, including regulations that seek to limit or restrict refining, marketing and midstream operations or regulate profits, pricing, or taxation of our products or feedstocks, or other regulations that restrict feedstock imports or product exports; our ability to timely obtain or maintain permits necessary for projects; fluctuations in NGL, crude oil, refined petroleum, renewable fuels and natural gas prices, and refining, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for renewable fuels; potential liability from pending or future litigation; liability for remedial actions, including removal and reclamation obligations under existing or future environmental regulations; unexpected changes in costs for constructing, modifying or operating our facilities; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we have announced or may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our products; failure to complete construction of capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.Earnings (Loss)
Millions of Dollars
2024
2023
4Q
3Q
Year
4Q
Year
Midstream
$
673
644
2,638
759
2,819
Chemicals
107
342
876
106
600
Refining
(775
)
(108
)
(365
)
859
5,340
Marketing and Specialties
252
(22
)
1,011
396
1,897
Renewable Fuels
28
(116
)
(198
)
(11
)
153
Corporate and Other
(298
)
(327
)
(1,287
)
(348
)
(1,340
)
Pre-Tax Income (Loss)
(13
)
413
2,675
1,761
9,469
Less: Income tax expense (benefit)
(38
)
44
500
476
2,230
Less: Noncontrolling interests
17
23
58
25
224
Phillips 66
$
8
346
2,117
1,260
7,015
Adjusted Earnings (Loss)
Millions of Dollars
2024
2023
4Q
3Q
Year
4Q
Year
Midstream
$
708
672
2,746
757
2,672
Chemicals
72
342
841
106
600
Refining
(759
)
(67
)
(211
)
842
5,367
Marketing and Specialties
185
583
1,490
396
1,897
Renewable Fuels
28
(116
)
(198
)
(11
)
153
Corporate and Other
(294
)
(327
)
(1,283
)
(298
)
(1,110
)
Pre-Tax Income (Loss)
(60
)
1,087
3,385
1,792
9,579
Less: Income tax expense (benefit)
(16
)
205
693
405
2,173
Less: Noncontrolling interests
17
23
88
25
243
Phillips 66
$
(61
)
859
2,604
1,362
7,163
Millions of Dollars
Except as Indicated
2024
2023
4Q
3Q
Year
4Q
Year
Reconciliation of Consolidated Earnings to Adjusted Earnings (Loss)
Consolidated Earnings
$
8
346
2,117
1,260
7,015
Pre-tax adjustments:
Certain tax impacts
(9
)
—
(9
)
(19
)
(19
)
Impairments1
35
28
450
—
—
Net gain on asset dispositions2
(67
)
—
(305
)
—
(123
)
Change in inventory method for acquired business
—
—
—
—
(46
)
Winter-storm-related costs (recovery)
(35
)
—
(35
)
—
—
Los Angeles Refinery cessation costs3
7
41
48
—
—
Legal accrual4
22
605
627
—
30
Legal settlement
—
—
(66
)
—
—
Business transformation restructuring costs
—
—
—
50
177
Loss on early redemption of DCP debt
—
—
—
—
53
DCP integration restructuring costs
—
—
—
—
38
Tax impact of adjustments5
9
(161
)
(162
)
(12
)
(26
)
Other tax impacts
(31
)
—
(31
)
83
83
Noncontrolling interests
—
—
(30
)
—
(19
)
Adjusted earnings (loss)
$
(61
)
859
2,604
1,362
7,163
Earnings per share of common stock ( dollars )
$
0.01
0.82
4.99
2.86
15.48
Adjusted earnings (loss) per share of common stock ( dollars )6
$
(0.15
)
2.04
6.15
3.09
15.81
Reconciliation of Segment Pre-Tax Income
(Loss) to Adjusted Pre-Tax Income (Loss)
Midstream Pre-Tax Income
$
673
644
2,638
759
2,819
Pre-tax adjustments:
Impairments1
35
28
346
—
—
Certain tax impacts
—
—
—
(2
)
(2
)
Net gain on asset disposition
—
—
(238
)
—
(137
)
Change in inventory method for acquired business
—
—
—
—
(46
)
DCP integration restructuring costs
—
—
—
—
38
Adjusted pre-tax income
$
708
672
2,746
757
2,672
Chemicals Pre-Tax Income
$
107
342
876
106
600
Pre-tax adjustments:
Winter-storm-related costs (recovery)
(35
)
—
(35
)
—
—
Adjusted pre-tax income
$
72
342
841
106
600
Refining Pre-Tax Income (Loss)
$
(775
)
(108
)
(365
)
859
5,340
Pre-tax adjustments:
Impairments1
—
—
104
—
—
Los Angeles Refinery cessation costs3
3
41
44
—
—
Certain tax impacts
(9
)
—
(9
)
(17
)
(17
)
Net loss on asset disposition
—
—
—
—
14
Legal accrual
22
—
22
—
30
Legal settlement
—
—
(7
)
—
—
Adjusted pre-tax income (loss)
$
(759
)
(67
)
(211
)
842
5,367
Marketing and Specialties Pre-Tax Income (Loss)
$
252
(22
)
1,011
396
1,897
Pre-tax adjustments:
Legal accrual4
—
605
605
—
—
Net gain on asset disposition2
(67
)
—
(67
)
—
—
Legal settlement
—
—
(59
)
—
—
Adjusted pre-tax income
$
185
583
1,490
396
1,897
Renewable Fuels Pre-Tax Income (Loss)
$
28
(116
)
(198
)
(11
)
153
Pre-tax adjustments:
None
—
—
—
—
—
Adjusted pre-tax income (loss)
$
28
(116
)
(198
)
(11
)
153
Corporate and Other Pre-Tax Loss
$
(298
)
(327
)
(1,287
)
(348
)
(1,340
)
Pre-tax adjustments:
Business transformation restructuring costs
—
—
—
50
177
Loss on early redemption of DCP debt
—
—
—
—
53
Los Angeles Refinery cessation costs3
4
—
4
—
—
Adjusted pre-tax loss
$
(294
)
(327
)
(1,283
)
(298
)
(1,110
)
1Impairments primarily related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment.
2In connection with the asset sale of our 49% non-operated equity interest in Coop Mineraloel AG closing early 2025, a before-tax unrealized gain was recognized from a foreign currency derivative in the Marketing & Specialties segment.
3Cessation costs include pre-tax charges for severance costs.
4Third-quarter legal accrual primarily related to ongoing litigation.
5We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.
6YTD 2024, Q4 2024, Q3 2024 and Q4 2023 are based on adjusted weighted-average diluted shares of 422,538 thousand, 411,687 thousand, 419,827 thousand and 440,582 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.
Millions of Dollars
Except as Indicated
2024
4Q
3Q
Reconciliation of Consolidated Net Income to Adjusted EBITDA
Net Income
$
25
369
Plus:
Income tax expense
(38
)
44
Net interest expense
168
191
Depreciation and amortization
819
543
Phillips 66 EBITDA
$
974
1,147
Special Item Adjustments (pre-tax):
Certain tax impacts
(9
)
—
Impairments
35
28
Winter-storm-related costs (recovery)
(35
)
—
Net gain on asset disposition
(67
)
—
Los Angeles Refinery cessation costs
7
41
Legal accrual
22
605
Total Special Item Adjustments (pre-tax)
(47
)
674
Change in Fair Value of NOVONIX Investment
1
—
Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment
$
928
1,821
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes
17
24
Proportional share of selected equity affiliates net interest
14
12
Proportional share of selected equity affiliates depreciation and amortization
209
188
Adjusted EBITDA attributable to noncontrolling interests
(38
)
(47
)
Phillips 66 Adjusted EBITDA
$
1,130
1,998
Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA
Midstream Income before income taxes
$
673
644
Plus:
Depreciation and amortization
234
233
Midstream EBITDA
$
907
877
Special Item Adjustments (pre-tax):
Impairments
35
28
Midstream EBITDA, Adjusted for Special Items
$
942
905
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes
3
5
Proportional share of selected equity affiliates net interest
3
3
Proportional share of selected equity affiliates depreciation and amortization
28
26
Adjusted EBITDA attributable to noncontrolling interests
(38
)
(47
)
Midstream Adjusted EBITDA
$
938
892
Chemicals Income before income taxes
$
107
342
Plus:
None
—
—
Chemicals EBITDA
$
107
342
Special Item Adjustments (pre-tax):
Winter-storm-related costs (recovery)
(35
)
—
Chemicals EBITDA, Adjusted for Special Items
$
72
342
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes
11
13
Proportional share of selected equity affiliates net interest
—
(2
)
Proportional share of selected equity affiliates depreciation and amortization
126
113
Chemicals Adjusted EBITDA
$
209
466
Refining Loss before income taxes
$
(775
)
(108
)
Plus:
Depreciation and amortization
435
230
Refining EBITDA
$
(340
)
122
Special Item Adjustments (pre-tax):
Certain tax impacts
(9
)
—
Los Angeles Refinery cessation costs
3
41
Legal accrual
22
—
Refining EBITDA, Adjusted for Special Items
$
(324
)
163
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes
(1
)
(1
)
Proportional share of selected equity affiliates net interest
—
(1
)
Proportional share of selected equity affiliates depreciation and amortization
27
27
Refining Adjusted EBITDA
$
(298
)
188
Marketing and Specialties Income (loss) before income taxes
$
252
(22
)
Plus:
Depreciation and amortization
79
32
Marketing and Specialties EBITDA
$
331
10
Special Item Adjustments (pre-tax):
Legal accrual
—
605
Net gain on asset disposition
(67
)
—
Marketing and Specialties EBITDA, Adjusted for Special Items
$
264
615
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes
4
7
Proportional share of selected equity affiliates net interest
11
12
Proportional share of selected equity affiliates depreciation and amortization
28
22
Marketing and Specialties Adjusted EBITDA
$
307
656
Renewable Fuels Income (loss) before income taxes
$
28
(116
)
Plus:
Depreciation and amortization
22
24
Renewable Fuels EBITDA
$
50
(92
)
Special Item Adjustments (pre-tax):
None
—
—
Renewable Fuels EBITDA, Adjusted for Special Items
$
50
(92
)
Corporate and Other Loss before income taxes
$
(298
)
(327
)
Plus:
Net interest expense
168
191
Depreciation and amortization
49
24
Corporate and Other EBITDA
$
(81
)
(112
)
Special Item Adjustments (pre-tax):
Los Angeles Refinery cessation costs
4
—
Total Special Item Adjustments (pre-tax)
4
—
Change in Fair Value of NOVONIX Investment
1
—
Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment
$
(76
)
(112
)
Millions of Dollars
Except as Indicated
December 31, 2024
Debt-to-Capital Ratio
Total Debt
$
20,062
Total Equity
28,463
Debt-to-Capital Ratio
41
%
Total Cash
1,738
Net Debt-to-Capital Ratio
39
%
Millions of Dollars
December 31, 2024
Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow, Excluding Working Capital
Net Cash Provided by Operating Activities
$
1,198
Less: Net Working Capital Changes
297
Operating Cash Flow, Excluding Working Capital
$
901
Millions of Dollars
Except as Indicated
2024
4Q
3Q
Reconciliation of Refining Loss Before Income Taxes to Realized Refining Margins
Loss before income taxes
$
(775
)
(108
)
Plus:
Taxes other than income taxes
92
100
Depreciation, amortization and impairments
436
230
Selling, general and administrative expenses
60
60
Operating expenses
968
922
Equity in earnings of affiliates
79
12
Other segment expense, net
58
(4
)
Proportional share of refining gross margins contributed by equity affiliates
132
193
Special items:
Certain tax impacts
(9
)
—
Realized refining margins
$
1,041
1,405
Total processed inputs ( thousands of barrels )
147,880
145,440
Adjusted total processed inputs ( thousands of barrels )*
171,031
168,951
Loss before income taxes ( dollars per barrel )**
$
(5.24
)
(0.74
)
Realized refining margins ( dollars per barrel )***
$
6.08
8.31
*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
**Income before income taxes divided by total processed inputs.
***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.
Source: Phillips 66
-
MIL-OSI Economics: RBI imposes monetary penalty on Aptus Finance India Private Limited, Chennai
Source: Reserve Bank of India
The Reserve Bank of India (RBI) has, by an order dated January 20, 2025, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on Aptus Finance India Private Limited (the company) for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ issued by RBI, relating to ‘Governance Issues’. This penalty has been imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
The correspondence pertaining to the intimation of appointment of a director revealed, inter alia, non-compliance with RBI directions. Based on the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions. After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company failed to take prior written permission of the RBI for effecting change in management, resulting in change of more than 30 per cent of its directors, excluding independent directors.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Puneet Pancholy)
Chief General ManagerPress Release: 2024-2025/2057
-
MIL-OSI Economics: Monthly Data on India’s International Trade in Services for the Month of December 2024
Source: Reserve Bank of India
The value of exports and imports of services during December 2024 is given in the following table.
International Trade in Services (US$ million) Month Receipts (Exports) Payments (Imports) October – 2024 34,309
(22.3)17,215
(27.9)November – 2024 32,014
(13.9)17,229
(26.0)December – 2024 36,857
(16.5)17,781
(13.8)Notes: (i) Figures in parentheses are growth rates over the corresponding month of the previous year which have been revised on the basis of balance of payments statistics. Ajit Prasad
Deputy General Manager
(Communications)Press Release: 2024-2025/2058
-
MIL-OSI Economics: Data on India’s Invisibles for Second Quarter (July-September) 2024-25
Source: Reserve Bank of India
The Reserve Bank today released data on India’s invisibles as per the IMF’s Balance of Payments and International Investment Position Manual (BPM6) format for July-September of 2024-25.
Ajit Prasad
Deputy General Manager
(Communications)Press Release: 2024-2025/2059
-
MIL-OSI Economics: Thales to present advanced defence and aerospace innovations at Aero India 2025, reinforcing its ‘Make in India’ commitment
Source: Thales Group
Headline: Thales to present advanced defence and aerospace innovations at Aero India 2025, reinforcing its ‘Make in India’ commitment
- Thales will be present at Aero India 2025 (3.3 in Hall B) to exhibit its cutting-edge capabilities across defence and aerospace.
- In support of the modernisation and indigenisation ambitions of the Indian armed forces, Thales will reinforce its commitment to “Make in India for India and for the world”, as well as the ‘Aatmanirbhar Bharat’ vision.
- Thales HR representatives will be available on 13 and 14 February at the stand to engage with engineers and discuss various career opportunities at the company’s engineering centres in Bangalore and Noida
Thales will showcase its cutting-edge technologies across the defence and aerospace sectors at the 15thedition of Aero India 2025, India’s flagship air show, highlighting the Group’s commitment to ‘Make in India for India and for the world’, aligned with the Aatmanirbhar Bharat vision.
Empowering India’s defence and aerospace capabilities at Aero India 2025
Thales offers a comprehensive array of capabilities and services designed to support the Indian armed forces in attaining operational excellence. At Aero India 2025, Thales will showcase its latest capabilities- across air, land and naval defence as well as space, cyber and digital – that are tailored for modern and future needs of the forces.
Thales provides state-of-the-art equipment on board fighter aircrafts, including the RBE2 AESA radar, the Spectra electronic warfare suite, optronics, the communication, navigation and identification suite (CNI), key cockpit display systems and a logistics support component. The Thales stand at Aero India 2025 will have a dedicated section on these capabilities.
Thales will also highlight its combat-proven airborne optronics, including TALIOS (Targeting Long-range Identification Optronic System) pod, the 2-in-1 system that delivers unmatched image quality, and the InfraRed Search and Track (IRST) system. Also on display will be Thales’s air defence solutions such as the Lightweight Multi-role Missile (LMM), the STARStreak missile and ForceShield, alongside air surveillance capabilities such as the GM 200 MM/A radar and the SkyView air command and control system.
For the first time in India, Thales will showcase its innovation in avionics through the FlytX suite for helicopters, in advanced aeronautics navigation systems such as TopAxyz, TopShield and TopStar M. Connectivity solutions such as SYNAPS-A, the airborne member of the SYNAPS software-defined radio family designed to support battlespace digitisation, Modem 21 Air Compact, and the NextW@ve TRA 6030 radio, will also be brought to Aero India this year.
As a leader in the fast-growing market of Unmanned Aircraft Systems (UAS), Thales will provide an overview of its portfolio of drone solutions, including its EagleShield drone countermeasures (an integrated nano, micro, mini and small drone countermeasures solution to protect and secure civil and military sites); the PARADE system that provides 360° protection of people, properties and activities, optimised for micro and mini UAS, ranging from 100g to 25kg; and Gamekeeper (a holographic radar that allows detection, tracking and classification of unlimited targets simultaneously including micro and mini drones), in addition to its safe and efficient UTM (Unmanned Traffic Management) system for cooperative and non-cooperative drones, to be unveiled for the first time in India.
Thales will also present its LGR 68 and LGR 70 Laser Guided Rockets that come with laser guidance precision, are jamming-proof and are extremely precise for guiding ammunition to target.
As part of its underwater solutions for efficient Maritime Security Operations, Thales will feature its Sonoflash sonobuoy, an anti-submarine warfare system that allows the detection, classification and localisation of submarines. It will also showcase the AirMaster C radar- the latest addition to its Air Master range of airborne surveillance radars -that is highly adaptable and can be integrated into both manned and unmanned airborne platforms.
Thales presents AI systems we can trust at Aero India 2025
Thales is a major AI player in these complex environments. The company is Europe’s top patent applicant in the field and devotes a lot of effort to research on AI, both in-house and through academic and industry partnerships. The Group, a major player in trusted AI, provides armed forces with greater efficiency in data analysis and decision-making, while taking into account the specific constraints, such as cybersecurity, embeddability and frugality, associated with critical environments. You will be able to see how Thales embarked IA on its solutions such as Talios or AirMaster C radar.
Expanding its team in India – hiring at Aero India 2025
Thales is expanding its team in India and seeking engineers in hardware, software and systems for its engineering centres in Bengaluru and Noida. Thales HR executives will be present during the public days of the show on 13 and 14 February 2025 to meet engineers and share various possible career opportunities available.
“As India progresses towards its Aatmanirbhar Bharat vision, Thales is proud to be a trusted partner in the nation’s ambitious journey. We remain committed to ‘Make in India’ and are advancing our roadmap by strengthening our local teams, collaborations and bringing advanced defence and aerospace technologies to the country. We look forward to continue equipping the Indian armed forces with the next generation of innovative and effective solutions to support their strategic defence ambitions. Aero India 2025 will serve as a key platform for us to present our flagship capabilities and engage with the authorities, forces and our industry partners.” said Pascale Sourisse, President & CEO, Thales International.
For more details on Thales’s presence at the Aero India 2025, please visit this webpage.
About Thales
Thales (Euronext Paris: HO) is a global leader in advanced technologies specialized in three business domains: Defence, Aerospace and Cyber & Digital. It develops products and solutions that help make the world safer, greener and more inclusive.
The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G.
Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4bn.
About Thales in India
Present in India since 1953, Thales is headquartered in Noida and has other operational offices and sites spread across Delhi, Bengaluru and Mumbai, among others. Over 2200 employees are working with Thales and its joint ventures in India. Since the beginning, Thales has been playing an essential role in India’s growth story by sharing its technologies and expertise in Defence, Aerospace and Cybersecurity & Digital Identity markets. Thales has two engineering competence centres in India – one in Noida focused on Cybersecurity & Digital Identity business, while the one in Bengaluru focuses on hardware, software and systems engineering capabilities for both the civil and defence sectors, serving global needs.
-
MIL-OSI Economics: ECB selects motifs for future euro banknotes
Source: European Central Bank
31 January 2025
- ECB shortlisted motifs based on the two possible themes for new banknotes: “European culture: shared cultural spaces” and “Rivers and birds: resilience in diversity”
- The decision builds on an inclusive process involving feedback from public surveys and groups of experts
- ECB to launch design contest in 2025 allowing Governing Council to select final designs in 2026
- First new banknotes will go into circulation several years after final decision on designs and following production process
The Governing Council of the European Central Bank (ECB) has selected motifs to illustrate the two possible themes for future euro banknotes. “European culture” focuses on shared cultural spaces and prominent Europeans. “Rivers and birds” focuses on the resilience and diversity of the natural world, complemented by the European institutions.
The decision benefited from the suggestions provided by two multidisciplinary advisory groups from across the euro area and is consistent with the preferences on the themes expressed by more than 365,000 Europeans in public surveys held in summer 2023 and in focus groups conducted between December 2021 and March 2022.
“We are excited to present these real-life motifs that reflect our commitment to Europe and celebrate its cultural heritage and natural environment,” said ECB President Christine Lagarde. “The new banknotes will symbolise our shared European identity and the diversity that makes us strong.”
European culture: shared cultural spaces
“European culture” celebrates the shared cultural spaces that have shaped European identity over the centuries. The motifs for this theme depict various cultural activities and spaces, and iconic European personalities who have contributed to building Europe’s cultural heritage. Their lives span six centuries, during which they lived, travelled and worked across our continent, and their accomplishments have resonated around the world.
The motifs selected are:
Table 1
European culture
Front
Reverse
€5
Performing artsMaria Callas
Street performers (music/dance/theatre) entertaining passersby
€10
MusicLudwig van Beethoven
A song festival with a choir of children and young adults singing
€20
Universities and schoolsMarie Curie
A school or university with a female teacher with young students. There are notebooks and books on the tables
€50
LibrariesMiguel de Cervantes
A library with some adults reading paper and digital books. A little boy and girl in front of a bookcase trying to get a book
€100
Museums and exhibitionsLeonardo da Vinci
Adults and children admiring some examples of street art, contemporary art, etc.
€200
Public squaresBertha von Suttner
A tree-covered square allowing people to come together, with adults and children talking, walking, playing, etc.
Rivers and birds: resilience in diversity
“Rivers and birds” highlights the resilience and diversity of Europe’s natural ecosystems by showcasing different stages of rivers and various bird species, emphasising the importance of nature and environmental protection. The European institutions featured on the banknotes remind us of the fundamental values of the European project, which also embraces environmental protection.
The motifs selected are:
Table 2
Rivers and birds
Front
Reverse
€5
Mountain spring
Wallcreeper next to a mountain landscapeEuropean Parliament
€10
Waterfall
Kingfisher in a waterfall or run poolEuropean Commission
€20
Confined river valley
Bee-eater colony in a sand wall on the side of a large, confined river valley along a riverbankEuropean Central Bank
€50
Meandering river
White stork flying over a meandering river in an unconfined river valleyCourt of Justice of the European Union
€100
River mouth
Avocet sweeping over the surface of a mud flatEuropean Council and Council of the European Union
€200
Seascape
Northern gannet flying over big ocean wavesEuropean Court of Auditors
Next steps
In 2025 the ECB will establish a jury and launch a design contest, which will be open to designers from across the European Union. The ECB will continue to involve the public and experts to ensure the designs selected are relatable for Europeans of all ages. In 2026 the ECB will ask the public which designs they prefer based on a shortlist.
“We are developing new banknotes because we are committed to cash now and in the future. Banknotes are a symbol of our European unity and with the new motifs, we celebrate our shared history and commitment to a sustainable future,” said ECB Executive Board member Piero Cipollone.
The Governing Council is expected to make the final decision on the designs in 2026. The new banknotes will be ready to enter circulation some years after this decision and following the production process.
For media queries, please contact Belén Pérez Esteve tel.: +49 173 533 4269 or Alessandro Speciale, tel. +49 172 167 0791.
Notes
- It is the duty of the ECB and the euro area national central banks to ensure that euro banknotes remain an innovative, secure and efficient means of payment. Developing new series of banknotes regularly is standard practice for all central banks. In a world where banknote reproduction technologies are rapidly evolving and counterfeiters can easily access information and materials, it is necessary to issue new banknotes on a regular basis. Beyond security considerations, the ECB is committed to reducing the environmental impact of euro banknotes throughout their life cycle, while also making them more relatable and inclusive for Europeans of all ages and backgrounds, including vulnerable groups such as the visually impaired. For more information, see the future banknotes page.
- The current theme of the euro banknotes is “Ages and styles” and the main motifs on each banknote are windows, doorways and bridges based on architectural styles from various periods in Europe’s history. For more information, see the banknotes design elements page.
-
MIL-OSI Economics: Efficiency, resilience and digital horizons: perspectives and challenges for the public sector | Keynote statement at the Digital Excellence Forum
Source: Bundesbank
Check against delivery.
1 Introduction
Against the backdrop of a changing geopolitical environment, the relevance of digital advances and innovations has further increased.
I have just returned from a discussion among policy makers and researchers in Washington D.C., and many of the exchanges touched on the economic outlook in a potentially more fragmented world economy.
For both reasons, I am delighted to be part of this conference about digital excellence here in Berchtesgaden.
Representing the Bundesbank on this panel, I would like to contribute three considerations from a public sector perspective.
While there is a lot of discussion about digitalisation in Germany and the need to catch up in particular in the public sector, there are encouraging examples. The Bundesbank is at the forefront of public sector digitalisation: it is using artificial intelligence in multiple ways and is among the first public institutions to move seriously into the public cloud.
International financial architecture, markets and instruments are changing due to ongoing economic fragmentation and technological advances. Working on the digital euro is a way for the European Central Bank System to prepare for those changes and to take an active role.
Given the geopolitical environment and growing cyber risks, the Bundesbank is investing in its cyber resilience, including the setting up of a new governance model for IT security.
Allow me to expand on that.
2 Innovation
The Bundesbank is breaking new ground by proactively using the public cloud. This is a significant step forward for a public sector institution. As a first step, our innovative, high-performance and secure eBusiness portal for our currently over 180,000 customers – NExt – went “live” in the cloud. Customers are banks, insurances, corporates or other public sector institutions.
At the same time, we built up a Bundesbank-owned private cloud in our computer centres for particularly sensitive data. Through our hybrid cloud strategy and investments in technological trends like artificial intelligence, we are ensuring our readiness for the challenges of today and tomorrow.
Artificial intelligence will help us to expand our economic analyses and improve our understanding of the effects of various policy measures on inflation, employment and economic growth.
It also plays a pivotal role in our risk analysis efforts.
Take, for example, the risk controlling function and its analysis related to the many counterparties with whom the Bundesbank conducts financial transactions or purchases securities. By combining diverse sets of data and information, artificial intelligence helps us identify potential financial difficulties of a counterparty at an early stage. Given the sheer volume and complexity of the data involved, collecting and evaluating this information manually would be nearly impossible.
Through the strategic application of artificial intelligence, we can detect risks more quickly and with greater precision, allowing us to take timely and informed action.
We are also using an artificial intelligence platform that allows access to the latest language models in a secure environment. It is a chatbot that works in a very similar way to ChatGPT – only ours has different requirements, for example in terms of data governance. The requests are neither stored in the cloud nor used for training purposes.
3 Future of Finance
The international financial architecture, markets and instruments are currently changing due to ongoing economic fragmentation and technological advances.
Against this backdrop, there are several reasons in favour of the digital euro.
The first reason is related to autonomy and sovereignty. So far, there is no sovereign pan-European solution for payment in the digital space. As a result, there is a risk that Europe will become overly dependent on US providers for critical infrastructure. A digital version of the euro renders the currency more attractive as means of payment internationally and will facilitate a start-up ecosystem around it.
Another reason is related to efficiency. We are seeing very strong fragmentation in the European payment market and increasing concentration through international card systems that are all US–based. The digital euro establishes standards that simplify competition.
Lastly, we also have to consider resilience. With the digital euro, we are safeguarding ourselves against competing currencies and stablecoins. The digital euro would be the next step in the development of the euro and would bring central bank money into the digital age.
The Bundesbank is a key player in the development of a digital euro thanks, amongst other things, to its IT expertise in payment systems and in the area of tech trends.
4 Cybersecurity
Cybersecurity is a decisive factor for the stability of the global economy and the functioning of our modern society. Operators of critical infrastructure, such as the Bundesbank, are under growing pressure from targeted cyber attacks.
Of course, the Bundesbank, too, is subject to the most common types of attacks like phishing or denial of service attacks. To give you an example: on average, we receive a phishing attack every 5 minutes.
That’s why the principle “Secure by Design” is of crucial importance from the very beginning when developing and operating IT solutions and services.
The Bundesbank has just rolled out a new governance model for IT security in order to create the basis for effectively counteracting growing threats.
Concretely, we are appointing a designated “security architect” in each Bundesbank department who serves as the go-to person for all architecture-related security concerns. The security architect will support product owners and agile teams in implementing security processes and regularly evaluating the impact of security-relevant information.
This role is complemented by “security champions” within each product team. These champions will help maintain the required level of information security throughout the entire product lifecycle, including regular checks for new vulnerabilities.
The governance model includes not only dedicated roles and responsibilities but also professional development and training measures for all staff in order to sensitise them to the fact that IT security is a critical discipline for everyone.
5 Conclusion
To conclude: By keeping up with technological developments, playing an active role in providing future forms of payment and of course safeguarding our security, the Bundesbank contributes to the competiveness of the German and European economy.
This is more relevant than ever in the current geopolitical context.
That’s why I’m thrilled to participate in this excellent conference and exchange.
-
MIL-OSI Economics: Results of the ECB Survey of Professional Forecasters for the first quarter of 2025
Source: European Central Bank
31 January 2025
- Headline inflation expectations revised up for 2025 but otherwise unchanged; longer-term expectations (for 2029) remain at 2.0%
- Expectations for HICP inflation excluding energy and food unchanged for 2025 and 2026; longer-term expectations revised down slightly to 1.9%
- Real GDP growth expectations revised down by 0.2 and 0.1 percentage points for 2025 and 2026 respectively, but longer-term expectations unrevised
- Unemployment rate expectations unchanged for 2025 and 2026, but longer-term expectations revised down slightly
Respondents’ expectations for headline inflation, as measured by the Harmonised Index of Consumer Prices (HICP), were 2.1% for 2025, 1.9% for 2026 and 2.0% for 2027. Expectations were revised up from the previous survey (conducted in the fourth quarter of 2024) by 0.2 percentage points for 2025 but unchanged for 2026. Expectations for core HICP inflation, which excludes energy and food, were unchanged for 2025 and 2026. Longer-term expectations for headline inflation were unchanged at 2.0%, while those for core HICP inflation were revised down slightly to 1.9%.
Respondents expected real GDP growth of 1.0% in 2025 and 1.3% in both 2026 and 2027. Compared with the previous survey, expectations were revised down by 0.2 percentage points for 2025 and 0.1 percentage points for 2026. Economic policy and political uncertainty contributed to these revisions. Longer-term growth expectations remained unchanged at 1.3%.
The expected profile of the unemployment rate was largely unchanged. Respondents continued to expect the unemployment rate to average 6.5% in 2025 but to decline to 6.4% in 2026, and then to fall further to 6.3% in 2027 and to remain there in the longer term.
-
MIL-OSI Economics: One policy to rule them all
Source: Securelist – Kaspersky
Headline: One policy to rule them all
Windows group policies are a powerful management tool that allows administrators to define and control user and computer settings within a domain environment in a centralized manner. While group policies offer functionality and utility, they are unfortunately a prime target for attackers. In particular, attackers are increasingly using group policies to distribute malware, execute hidden scripts and deploy ransomware.
These attacks can range from simple configuration changes that could result in data breaches to more complex scenarios where attackers gain complete control over the corporate network. To ensure the security of your IT infrastructure, it is crucial to understand the vulnerabilities in group policies and the tactics used by attackers. This story examines how cybercriminals exploit group policies as an attack vector, what risks attacks like these pose, and what measures can be taken to protect against potential threats.
Group Policy Object
A Group Policy Object (GPO) includes two key components: a Group Policy Container (GPC) and a Group Policy Template (GPT). A GPC is an Active Directory container that holds information about the GPO version, its status and so on.
A GPT is a collection of files and folders kept on the SYSVOL system volume of every domain controller within a domain. These files hold a variety of settings, scripts and presets for users and workstations.
The path to each template is specified in the attribute of the group policy container named gPCFileSysPath.
Next, gPCMachineExtensionNames and gPCUserExtensionNames are important attributes in each policy. Each of these attributes contains a GUID for Client Side Extensions (CSE) that will be distributed to user and/or computer settings. Extensions themselves are most often implemented using libraries that contain a set of functions necessary for applying extension settings to users or computers. So, the GUID provides information about which exact library needs to be loaded. A list of all CSE GUIDs can be found in the following registry key:
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HKEY_LOCAL_MACHINESOFTWAREMicrosoftWindows NTCurrentVersionWinlogonGPExtensions
To determine which policies a client will apply, it makes an LDAP query to the domain controller, which returns a set of policies for a specific user and/or computer. This set is called SOM (Scope of Management). A key attribute of a SOM is gpLink, which connects organizational units (OUs) to the GPOs that apply to them.
How attackers exploit group policies
In this story, we will not delve into the specifics of how attackers gain access to Group Policies. We will only note that to modify policies, attackers need only have WriteProperty permissions on the gPCFileSysPath attribute within the GPO. This has been described in more detail in SpecterOps’ study, An ACE Up The Sleeve: Designing Active Directory DACL Backdoors. Let’s focus on examples of how attackers specifically use these very policies for their own purposes.
The most common policy abuse tactic used by malicious actors is to deploy ransomware across multiple hosts. Our Global Emergency Response Team (GERT) regularly encounters its consequences in their work. However, group policies can also be used to covertly gain a foothold in a domain, where attackers can do virtually anything they want:
- Create new local users/administrators;
- Create malicious scheduler tasks;
- Create various services;
- Run tasks on behalf of the system and/or user;
- Change the registry configuration and much more.
Modifying the gPCMachineExtensionNames and gPCUserExtensionNames attributes
There are several tools designed to compromise GPOs. While they are all functionally similar, we will focus on the most popular one (after the built-in Windows MMC tool) SharpGPOAbuse. This utility provides a step-by-step guide to modifying Group Policy Objects (GPOs), making it convenient for analyzing the specific changes involved. As an example, let’s create a user-defined scheduler task that will run under the account labdomain.localadmin.
As seen in the screenshot above, during GPO modification, a new task is first added to the GPT on SYSVOL as an XML file. After that, the versionNumber attribute is changed, and the version number in the GPT.ini file is increased. This is necessary so that when checking for GPO updates, the client can detect that there is a newer version than the one in the cache and download the modified policy. Such changes can be tracked using event 5136, which is generated whenever an AD object is modified.
As we were creating a custom policy, we modified the gPCUserExtensionNames attribute, which now includes the following CSE GUID values:
- {00000000-0000-0000-0000-000000000000} — Core GPO Engine;
- {CAB54552-DEEA-4691-817E-ED4A4D1AFC72} — Preference Tool CSE GUID Scheduled Tasks;
- {AADCED64-746C-4633-A97C-D61349046527} — Preference CSE GUID Scheduled Tasks.
After the policy is applied, a scheduled task will start:
Each function within the SharpGPOAbuse tool (such as creating scheduled tasks, adding users, granting privileges and so on) has a unique set of CSEs that will be recorded in the user or computer attributes.
CSE toolkit for adding a local administrator, new privileges and an autostart script in the SharpGPOAbuse code
These CSEs can serve as the basis for developing rules for detecting similar policies:
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title: Adding new privilege via GPO
description: Detects events of adding specific attributes for
gPCMachineExtensionNames
tags:
– attack.privilege_escalation
– attack.defense_evasion
– attack.t1484
– attack.t1484.001
logsource:
product: windows
service: security
detection:
selectionEvent:
EventID: 5136
OperationType: ‘Value Added’
AttributeLDAPDisplayName: ‘gPCMachineExtensionNames’
selectionAttribute:
AttributeValue|all:
– ‘{827D319E-6EAC-11D2-A4EA-00C04F79F83A}’
– ‘{803E14A0-B4FB-11D0-A0D0-00A0C90F574B}’
condition: selectionEvent and selectionAttribute
falsepositives:
– Legitimate execution by system administrators.
level: medium
Detecting the addition of new privileges through GPOs
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title: Adding startup/logon script via GPO
description: Detects events of adding specific attributes for
gPCMachineExtensionNames or gPCUserExtensionNames
tags:
– attack.privilege_escalation
– attack.defense_evasion
– attack.persistence
– attack.t1484
– attack.t1484.001
– attack.t1547
logsource:
product: windows
service: security
detection:
selectionEvent:
EventID: 5136
OperationType: ‘Value Added’
AttributeLDAPDisplayName:
– ‘gPCMachineExtensionNames’
– ‘gPCUserExtensionNames’
selectionAttribute:
AttributeValue|all:
– ‘{42B5FAAE-6536-11D2-AE5A-0000F87571E3}’
– ‘{40B6664F-4972-11D1-A7CA-0000F87571E3}’
condition: selectionEvent and selectionAttribute
falsepositives:
– Legitimate activity by system administrators.
level: medium
Detecting the addition of new autorun scripts through GPOs
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title: Adding sheduled task via gpo
description: Detects events of adding specific attributes for
gPCMachineExtensionNames or gPCUserExtensionNames
tags:
– attack.privilege_escalation
– attack.defense_evasion
– attack.persistence
– attack.t1484
– attack.t1484.001
– attack.t1053
– attack.t1053.005
logsource:
product: windows
service: security
detection:
selectionEvent:
EventID: 5136
OperationType: ‘Value Added’
AttributeLDAPDisplayName:
– ‘gPCMachineExtensionNames’
– ‘gPCUserExtensionNames’
selectionAttribute:
AttributeValue|all:
– ‘{AADCED64-746C-4633-A97C-D61349046527}’
– ‘{CAB54552-DEEA-4691-817E-ED4A4D1AFC72}’
condition: selectionEvent and selectionAttribute
falsepositives:
– Legitimate activity by system administrators.
level: medium
Detecting the addition of a new scheduler task using GPOs
Modifying the gPCFileSysPath attribute
In some scenarios, the adversary can modify the GPC but cannot access the directory where the GPTs are located. This is because different methods are used to manage different GPO entities: A GPC is stored in the LDAP directories of Active Directory, while a GPT is stored in a system folder on the domain controller: SYSVOL. Consequently, a user may have permissions to modify the GPC LDAP container, but not have permissions to modify or add files in SYSVOL. In this case, when attempting to modify the policy, the user will see the following error:
An attacker without SYSVOL access can modify the GPC attribute gPCFileSysPath, specifying a path to a network resource they control. As a result, all clients subject to the policy will retrieve templates from this resource. Let’s consider this scenario using the example of a GPOddity attack. The tool spins up its own SMB server, where it creates malicious policies, then changes the path to the GPT, and after applying the modified policies, restores them to their original state from its backup.
The technique of modifying the gPCFileSysPath attribute was highlighted back in 2020 in a blog post by researcher Mark Gamache, who was working at Microsoft at the time. However, the company believes that the ability to store GPTs outside of the SYSVOL system folder is a feature rather than a bug. At the same time, Microsoft does not recommend storing GPTs on third-party resources, as this can break certain Windows mechanisms.
The possibility of storing policy data on third-party resources as mentioned in Microsoft documentation
To detect this technique, we can once again utilize event 5136, where we will monitor the modification of the attribute we are interested in.
It’s possible to automatically detect an event 5136, related to changes in gPCFileSysPath, in logs by using the following rule:
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title: Setting the gPCFileSysPath attribute
description: Detects changing the gPCFileSysPath attribute.
tags:
– attack.privilege_escalation
– attack.defence_evasion
– attack.t1484
– attack.t1484.001
logsource:
product: windows
service: security
detection:
selection:
EventID: 5136
AttributeLDAPDisplayName: ‘gPCFileSysPath’
OperationType: ‘Value Added’
filter:
AttributeValue|re: ‘(?i)(?domain>[w.–]+)sysvolk
’ condition: selection and not filter
falsepositives:
– Unlikely
level: high
To eliminate the risk of false positives, we added to exceptions events that are generated when creating a new GPO where the attribute specifies the normal path to the GPT:
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domain>SysVoldomain>PoliciesGPO GUID>
How we search for “bad” policies in Compromise Assessment projects
One of the items on the checklist for each of our Compromise Assessment projects is searching for compromise via group policies, as attackers often rely on this method both to distribute malicious software, scripts, vulnerable settings and so on, and to secretly gain a foothold in the domain. We use the Group3r tool to analyze a large volume of policies. It helps us quickly find all policies and run them through our detection rules to identify suspicious ones, as well as find various vulnerabilities that an attacker could exploit.
Since Group3r only searches for policies located on the SYSVOL domain volume, it is important to determine which of them have the gPCFileSysPath attribute changed. To do this, you can use the following script:
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$GPOs = Get–GPO –All
$domain = (Get–ADDomain).DNSRoot
$correctPathPattern = “$domainSysVol$domainPolicies”
$correctPathPatternLower = $correctPathPattern.ToLower()
$incorrectGPOs = @()
foreach ($gpo in $GPOs) {
$ldapPath = “LDAP://” + $gpo.Path
[ADSI]$GPC = $ldapPath
$gpcFileSysPath = $GPC.Properties[“gPCFileSysPath”].Value
$gpcFileSysPathLower = $gpcFileSysPath.ToLower()
if (–not $gpcFileSysPathLower.StartsWith($correctPathPatternLower)) {
$result = [PSCustomObject]@{
GPOName = $gpo.DisplayName
GPOId = $gpo.Id
GPFileSysPath = $gpcFileSysPath
}
$incorrectGPOs += $result
}
}
if ($incorrectGPOs.Count –gt 0) {
$incorrectGPOs | Format–Table –AutoSize
} else {
Write–Host “gPCFileSysPath is correct”
}
In addition to Group3r, SharpHound is an excellent tool for finding various GPO configuration errors. It allows you to find potential GPO attack vectors.
An example of a misconfiguration that grants write permissions for policies to users who do not need them
How we monitor group policies in MDR
Organizations often fail to log many events on hosts. To ensure security and proactive monitoring of group policies in our MDR service, we have developed several improvements to our telemetry. Firstly, since Windows advanced auditing is disabled on some hosts, we try to use ETW providers (Event Tracing for Windows) wherever possible to replace the events needed to understand what happened in the system. Where ETW alone is not enough, we improve our technology and expand telemetry coverage. For instance, to detach from event 5136, monitoring of which requires configuring Directory Service Changes audit, our SOC R&D team developed the GCNet tool based on Microsoft’s PoC for monitoring directory service changes. The tool connects to the LDAP database where we specify a search for a particular distinguishedName attribute value (in our case, CN=Policies) and subscribe to any changes to it. If we receive a notification about a policy change, we request detailed information about the corresponding GPO, including GPC and GPT data.
Detected events are run through our detection rules, allowing us to identify various malicious policies. One of the important attributes of a policy is GPLink options and policy flags. Policies flagged as Enforced take precedence over other policies and will be applied before them, and they cannot be overwritten by another policy. Additionally, GPOs have several flags that, when known, can help us determine whether a policy is enabled or not. The combination of all attributes provides us with additional information about how much time we have to respond to an incident before the next group policy is applied, and where and how it is applied, significantly broadening the investigation scope. By default, policies are updated every 90 minutes +/– 30 minutes on client machines and every 5 minutes on the domain controller.
Conclusion
Group policies (GPOs) are a versatile tool that, in the hands of malicious actors, can pose a serious threat to a corporate network. Their compromise allows attackers to perform covert actions, modify configurations and spread malware to multiple hosts simultaneously. For this reason, group policies must be closely monitored and constantly secured. Tracking changes in group policies and responding to detected threats is part of our Managed Detection and Response (MDR) service.
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MIL-OSI Economics: Asian Development Blog: As Nations Reshore, ASEAN Should Explore Trade, Digitalization and Connectivity
Source: Asia Development Bank
The Association of Southeast Asian Nations should leverage trade, tourism, and digitalization to foster economic resilience and sustainable growth amid global economic uncertainty.
There is a growing sense that the global economy is moving towards a more competitive era as countries are reshoring. Many are bringing their supply chains back home to reduce risks from disruptions. Others are deploying tariffs and other barriers to advance their domestic agenda.
Issues around climate change and rivalry around frontier technology (artificial intelligence, big data, internet of things) are increasingly being discussed as issues of national security.
To address these issues, the 10 countries of the Association of Southeast Asian Nations (ASEAN) must work collectively to achieve their goals of a better economic future of their people and the protection of their national interest. A particular focus on trade, digitalization and connectivity is needed.
Trade is likely to be focused on services, which covers cross-border transactions under finance, telecom, travel, transport and other business services, like professionals and consultancy services. Each of these plays an important role in ASEAN countries in terms of job creation and economic growth. Post-COVID-19, in the face of a slowdown in goods trade, trade in services showed positive momentum and even positioned ASEAN as a net exporter of services.
Travel services, particularly, hold promise for ASEAN as it underscores ASEAN’s attractiveness as a tourist destination. Hence, while aiming to deliver a competitive tourism sector, the ASEAN countries are expected to collectively work on tourism enablers like infrastructure, skills development, marketing promotion, product development and others to increase intra-regional travel in ASEAN, which currently constitutes more than 40% of ASEAN’s total international tourism, adding to the economic resilience of the region.
The digital economy (including e-commerce, e-health, e-payments, customs automation) at the regional level is expected to grow from $300 billion to almost $1 trillion by 2030. This is reported to reach $2 trillion if the right kind of digital connectivity policies are put in place through regional cooperation.
Member countries should consider their collective actions as a regional public good, where benefits from greater trade, travel, digitalization, and connectivity will deliver on sustainable and resilient outcomes for people residing in the region.
The Digital Economy Framework Agreement is a key element of this cooperation. It centers around digital standards, data flow, cybersecurity, digital trade, talent mobility and other digital public infrastructure.
Additional benefits from digital cooperation are expected through positive climate impact, creating $12-30 billion in social cost savings, enhancing resilience, creating new employment and improving accessibility of people to educational and healthcare resources.
Finally, connectivity that is both physical and institutional in nature is expected to serve the economic competitiveness of ASEAN countries, raising their capacity to engage better with bigger economies of Asia and elsewhere. Sustainable infrastructure – clean energy, low-carbon transport and improved energy efficiency for urban infrastructure – is gaining traction.
Combining this with greater cooperation around digitalization, seamless cross-border logistics and supply chains, facilitating the cross-border movement of goods, services and people will safeguard the environment and foster resilience of the countries in the region.
The collective thinking about sustainable infrastructure is helpful for ASEAN member countries that have committed to the Paris Agreement and have submitted their Nationally Determined Contributions targeting net zero carbon dioxide (CO2) emissions by 2050 and net zero greenhouse gas emissions by 2065, to limit temperature increases of no more than 1.5°C.
It is opportune for ASEAN policymakers to think afresh on ways to work together. Although there are signs of economic fragmentation at a global level, there are also areas that require cross-border cooperation.
Economic independence has grown over time in the region. With emerging pressing issues of digitalization and climate change, mismanaged interdependence may result in costs and lead to economic setbacks.
Therefore, for the next term of ASEAN regional cooperation 2045, the member countries should consider their collective actions as a regional public good, where benefits from greater trade, travel, digitalization, connectivity will deliver sustainable and resilient outcomes for people in the region.
