Entera’s EB613, the First Once Daily PTH(1-34) Tablet Treatment Dedicated to Post-Menopausal Women with High Risk Osteoporosis Abstract Selected for Presentation at the ASBMR 2024 Annual Meeting – Key SABRE Update Also Expected

JERUSALEM, Aug. 01, 2024 (GLOBE NEWSWIRE) — Entera Bio Ltd. (NASDAQ: ENTX) (“Entera” or the “Company”), a leader in the development of orally delivered peptides and therapeutic proteins, today announced that new comparative pharmacological data for its investigational agent EB613 vs. Forteo® was selected for presentation at the American Society for Bone and Mineral Research (ASBMR) 2024 Annual Meeting which will be held on September 27–30, 2024 in Toronto, ON, Canada.

EB613 is being developed as the first once–daily oral anabolic (bone forming) PTH(1–34) mini tablet therapy for post–menopausal women with high risk osteoporosis. It is estimated that 50 percent of women and 20 percent of men over the age of 50 are at risk of a fragility fractures and approximately 1 in 5 adults will die within the year following a hip fracture. Post menopausal osteoporosis afflicts more women than cancer and cardiovascular disease and is a serious health concern for an estimated 200 million women globally.

“Available injectable anabolic treatments, while efficacious and recommended across medical guidelines, unfortunately do not provide a viable solution for most women with high–risk osteoporosis requiring an anabolic intervention. Our EB613 program is dedicated to address the treatment chasm in current osteoporosis care and hopefully present a treatment for the majority of women to adequately manage their post–menopause bone health with a simple once daily tablet treatment. Importantly, we look forward to the SABRE (Study to Advance BMD as a Regulatory Endpoint) UPDATE at the ASBMR 2024 meeting. On March 26th 2024, Entera echoed the ASBMR announcement that the U.S. Food and Drug Administration (FDA) had communicated to SABRE that a ruling to qualify bone mineral density (BMD) as a surrogate endpoint for fractures in future trials of new anti–osteoporosis drugs would be provided within 10 months. The proposed registrational Phase 3 study for EB613, is designed to meet the quantitative BMD thresholds proposed by SABRE,” said Miranda Toledano, Chief Executive Officer at Entera.

Abstract Title:  3079 – EB613 (Oral PTH(1–34) Tablets) Shows Differentiated Pharmacokinetic Profile From Forteo – New Results from Phase 1b Open–Label Study
Presentation Number:  Sat–LB 589
Session Date/Time: Saturday, September 28, 2024, 2:15 – 3:45 PM 

SABRE Project Update

Speakers: Dennis M. Black , PhD, University of California, United States; Theresa E. Kehoe , MD, CDER/FDA, United States

Session Date / Time: Sunday September 29, 2024 9:45 – 10:45 AM

About Entera Bio

Entera is a clinical stage company focused on developing oral peptide or protein replacement therapies for significant unmet medical needs where an oral tablet form holds the potential to transform the standard of care. The Company leverages on a disruptive and proprietary technology platform (N–Tab™) and its pipeline includes five differentiated, first–in–class oral peptide programs, expected to enter the clinic (Phase 1 to Phase 3) by 2025. The Company’s most advanced product candidate, EB613 (oral PTH (1–34)), is being developed as the first oral, osteoanabolic (bone building) once–daily tablet treatment for post–menopausal women with low BMD and high–risk osteoporosis, with no prior fracture. A placebo controlled, dose ranging Phase 2 study of EB613 tablets (n= 161) met primary (PD/bone turnover biomarker) and secondary endpoints (BMD). Entera is preparing to initiate a Phase 3 registrational study for EB613 pursuant to the FDA’s qualification of a quantitative BMD endpoint which is expected to occur by January 2025. The EB612 program is being developed as the first oral PTH(1–34) tablet peptide replacement therapy for hypoparathyroidism. Entera is also developing the first oral oxyntomodulin, a dual targeted GLP1/glucagon peptide, in tablet form for the treatment of obesity; and first oral GLP–2 peptide tablet as an injection–free alternative for patients suffering from rare malabsorption conditions such as short bowel syndrome in collaboration with OPKO Health. For more information on Entera Bio, visit www.enterabio.com or follow us on LinkedIn, Twitter, Facebook, Instagram.

Cautionary Statement Regarding Forward Looking Statements

Various statements in this press release are “forward–looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements (other than statements of historical facts) in this press release regarding our prospects, plans, financial position, business strategy and expected financial and operational results may constitute forward–looking statements. Words such as, but not limited to, “anticipate,” “believe,” “can,” “could,” “expect,” “estimate,” “design,” “goal,” “intend,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “target,” “likely,” “should,” “will,” and “would,” or the negative of these terms and similar expressions or words, identify forward–looking statements. Forward–looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions and uncertainties. Forward–looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved.

Important factors that could cause actual results to differ materially from those reflected in Entera’s forward–looking statements include, among others: changes in the interpretation of clinical data; results of our clinical trials; the FDA’s interpretation and review of our results from and analysis of our clinical trials; unexpected changes in our ongoing and planned preclinical development and clinical trials, the timing of and our ability to make regulatory filings and obtain and maintain regulatory approvals for our product candidates; the potential disruption and delay of manufacturing supply chains; loss of available workforce resources, either by Entera or its collaboration and laboratory partners; impacts to research and development or clinical activities that Entera may be contractually obligated to provide; overall regulatory timelines; the size and growth of the potential markets for our product candidates; the scope, progress and costs of developing Entera’s product candidates; Entera’s reliance on third parties to conduct its clinical trials; Entera’s expectations regarding licensing, business transactions and strategic collaborations; Entera’s operation as a development stage company with limited operating history; Entera’s ability to continue as a going concern absent access to sources of liquidity; Entera’s ability to obtain and maintain regulatory approval for any of its product candidates; Entera’s ability to comply with Nasdaq’s minimum listing standards and other matters related to compliance with the requirements of being a public company in the United States; Entera’s intellectual property position and its ability to protect its intellectual property; and other factors that are described in the “Cautionary Statements Regarding Forward–Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Entera’s most recent Annual Report on Form 10–K filed with the SEC, as well as the company’s subsequently filed Quarterly Reports on Form 10–Q and Current Reports on Form 8–K. There can be no assurance that the actual results or developments anticipated by Entera will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Entera. Therefore, no assurance can be given that the outcomes stated or implied in such forward–looking statements and estimates will be achieved. Entera cautions investors not to rely on the forward–looking statements Entera makes in this press release. The information in this press release is provided only as of the date of this press release, and Entera undertakes no obligation to update or revise publicly any forward–looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.


GLOBENEWSWIRE (Distribution ID 9197414)

Cellebrite Appoints Renowned Cybersecurity Expert Sigalit Shavit as Chief Information Officer

TYSONS CORNER, Va. and PETAH TIKVA, Israel, Aug. 01, 2024 (GLOBE NEWSWIRE) — Cellebrite (NASDAQ: CLBT), a global leader in premier Digital Investigative solutions for the public and private sectors, today announced the appointment of Sigalit Shavit as Chief Information Officer (CIO) who begins her role today, August 1, 2024.

Shavit joins the Company’s Leadership Team, bringing with her more than 30 years of experience to Cellebrite’s information technology and security team. In this newly established position that reports to CEO Yossi Carmil, Shavit will play a pivotal role in scaling the Company’s ability to innovate and support customers as they strive to continue accelerating justice around the globe.

Shavit joins Cellebrite at a time when the Company’s technical innovation and infrastructure is paramount to supporting customers to stay ahead of the growing sophistication of criminals and the ever–increasing growth of digital evidence. She will focus on ensuring that Cellebrite’s information technology and security organizations continue supporting the day–to–day needs of the business, responding decisively to ever–evolving cyber threats, leveraging AI and accelerating innovation.

“Sigalit’s expertise in information technology and security and enabling innovation for enterprise SaaS companies, elevates Cellebrite’s ability to advance its mission of accelerating justice,” said Cellebrite CEO Yossi Carmil. “We are fortunate to gain both her knowledge and leadership, which allows us to better serve our customers and employees.”

Named one of the Top 25 Women Leaders in Cybersecurity in multiple publications, Shavit has held CIO and COO roles with FedEx Express, ECI Telecom, CyberArk and most recently KTrust. During her tenure with CyberArk, she played a critical role through its transformation to an enterprise–grade cloud/SaaS company.

“It is a great honor to be here and lead a team that empowers and propels Cellebrite and its customers forward,” Shavit said. “I am passionate about my team’s significant mission of harnessing a clear, modern digital strategy and solutions to make an impact on efficiency and accelerating innovation.”

About Cellebrite 

Cellebrite’s (Nasdaq: CLBT) mission is to enable its customers to protect and save lives, accelerate justice and preserve privacy in communities around the world. We are a global leader in Digital Investigative solutions for the public and private sectors, empowering organizations in mastering the complexities of legally sanctioned digital investigations by streamlining intelligence processes. Trusted by thousands of leading agencies and companies worldwide, Cellebrite’s Digital Investigative platform and solutions transform how customers collect, review, analyze and manage data in legally sanctioned investigations. To learn more visit us at www.cellebrite.com, https://investors.cellebrite.com, or follow us on X at @Cellebrite.

Media 
Victor Ryan Cooper 
Sr. Director of Corporate Communications + Content Operations 
Victor.cooper@cellebrite.com 
+1 404.804.5910 

Investor Relations 
Andrew Kramer 
Vice President, Investor Relations 
investors@cellebrite.com 
+1 973.206.7760

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e4793d6b–ce54–4dd5–af87–642468ab62e7


GLOBENEWSWIRE (Distribution ID 9195919)

79 Years After Hiroshima & Nagasaki: A Grim Reminder of Nuclear Annihilation

Erico Platt looks at the disarmament exhibition that she staged, “Three Quarters of a Century After Hiroshima and Nagasaki: The Hibakusha—Brave Survivors Working for a Nuclear-Free World.” Credit: UNODA/Diane Barnes

By Thalif Deen
UNITED NATIONS, Aug 1 2024 – The upcoming 79th anniversary of the atomic bombings of Hiroshima and Nagasaki, which took place on August 6 and 9, 1945, remains a grim reminder of the destructive consequences of nuclear weapons.

The US bombings killed an estimated 90,000 to 210,000, with roughly half of the deaths occurring on the first day in Hiroshima.

But despite an intense global campaign for nuclear disarmament, the world has witnessed an increase in the number of nuclear powers from five—the US, UK, France, China and Russia—to nine, including India, Pakistan, North Korea and Israel.

Is the continued worldwide anti-nuclear campaign an exercise in futility? And will the rising trend continue—with countries such as Iran, Egypt, Saudi Arabia and South Korea—as potential nuclear powers of the future?

South Africa is the only country that has voluntarily given up nuclear weapons after developing them. In the 1980s, South Africa produced six nuclear weapons, but dismantled them between 1989 and 1993. A number of factors may have influenced South Africa’s decision, including national security, international relations, and a desire to avoid becoming a pariah state.

But there is an equally valid argument that there have been no nuclear wars—only threats—largely because of the success of the world-wide anti-nuclear campaign, the role of the United Nations and the collective action by most of the 193 member states in adopting several anti-nuclear treaties.

According to the UN Office for Disarmament Affairs (UNODA), the United Nations has sought to eliminate weapons  of mass destruction (WMDs) ever since the establishment of the world body. The first resolution adopted by the UN General Assembly in 1946 established a commission to deal with problems related to the discovery of atomic energy, among others.

The commission was to make proposals for, inter alia, the control of atomic energy to the extent necessary to ensure its use only for peaceful purposes.

Several multilateral treaties have since been established with the aim of preventing nuclear proliferation and testing, while promoting progress in nuclear disarmament.

These include the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), the Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space and Under Water, also known as the Comprehensive Nuclear-Test-Ban Treaty (CTBT), which was signed in 1996 but has yet to enter into force, and the Treaty on the Prohibition of Nuclear Weapons (TPNW).

Jackie Cabasso, Executive Director, Western States Legal Foundation in Oakland, California, which monitors and analyzes US nuclear weapons programs and policies, told IPS: “As we approach the 79th anniversary of the U.S. atomic bombings of Hiroshima and Nagasaki, the world is facing a greater danger of nuclear war than at any time since 1945.”

“The terrifying doctrine of “nuclear deterrence,” which should long ago have been delegitimized and relegated to the dustbin of history and replaced with multilateral, non-militarized common security, has metastasized into a pathological ideology brandished by nuclear-armed states and their allies to justify the perpetual possession and threatened use—including first use—of nuclear weapons,” she pointed out.

“It is more important than ever that we heed the warnings of the aging hibakusha (A-bomb survivors): What happened to us must never be allowed to happen to anyone again; nuclear weapons and human beings cannot co-exist; no more Hiroshimas, no more Nagasakis!”

This demands an irreversible process of nuclear disarmament. But to the contrary, all nuclear armed states are qualitatively and, in some cases, quantitatively upgrading their nuclear arsenals and a new multipolar arms race is underway, she noted.

“To achieve the elimination of nuclear weapons and a global society that is more fair, peaceful, and ecologically sustainable, we will need to move from the irrational fear-based ideology of deterrence to the rational fear of an eventual nuclear weapon use, whether by accident, miscalculation, or design.”

“We will also need to stimulate a rational hope that security can be redefined in humanitarian and ecologically sustainable terms that will lead to the elimination of nuclear weapons and dramatic demilitarization, freeing up tremendous resources desperately needed to address universal human needs and protect the environment.”

In this time of multiple global crises, “our work for the elimination of nuclear weapons must take place in a much broader framework, taking into account the interface between nuclear and conventional weapons and militarism in general, the humanitarian and long-term environmental consequences of nuclear war, and the fundamental incompatibility of nuclear weapons with democracy, the rule of law, and human wellbeing,” declared Cabasso.

Dr. M.V. Ramana, Professor and Simons Chair in Disarmament, Global and Human Security School of Public Policy and Global Affairs and Graduate Program Director, MPPGA at the University of British Columbia, Vancouver, told IPS, “The glass is half-full or half-empty depending on how one looks at it.”

“The fact that we have avoided nuclear war since 1945 is also partly due to the persistence of the anti-nuclear movement. Historians like Lawrence Wittner have pointed to the many instances when governments have chosen nuclear restraint instead of unrestrained expansion.”

While South Africa is the only country that dismantled its entire nuclear weapons program, many countries—Sweden, for example—have chosen not to develop nuclear weapons even though they had the technical capacity to do so. They did so in part because of strong public opposition to nuclear weapons, which in turn is due to social movements supporting nuclear disarmament, he pointed out.

Thus, organizing for nuclear disarmament is not futile. Especially as we move into another era of conflicts between major powers, such movements will be critical to our survival, declared Ramana.

According to the UN, a group of elderly hibakusha, called Nihon Hidankyo, have dedicated their lives to achieving a non-proliferation treaty, which they hope will ultimately lead to a total ban on nuclear weapons.

“On an overcrowded train on the Hakushima line, I fainted for a while, holding in my arms my eldest daughter of one year and six months. I regained my senses at her cries and found no one else was on the train,” a 34-year-old woman testifies in the booklet. She was located just two kilometres from the Hiroshima epicenter.

Fleeing to her relatives in Hesaka, at age 24, another woman remembers that “people, with the skin dangling down, were stumbling along. They fell down with a thud and died one after another,” adding, “still now I often have nightmares about this, and people say, ‘it’s neurosis’.”

One man who entered Hiroshima after the bomb recalled in the exhibition “that dreadful scene—I cannot forget even after many decades.”

At a disarmament exhibition in UN Headquarters in New York, a visitor reads text about a young boy bringing his little brother to a cremation site in Nagasaki, Japan. Credit: UNODA/Erico Platt

At a disarmament exhibition in UN Headquarters in New York, a visitor reads text about a young boy bringing his little brother to a cremation site in Nagasaki, Japan. Credit: UNODA/Erico Platt

A woman who was 25 years old at the time said, “When I went outside, it was dark as night. Then it got brighter and brighter, and I could see burnt people crying and running about in utter confusion. It was hell…I found my neighbor trapped under a fallen concrete wall… Only half of his face was showing. He was burned alive”.

The steadfast conviction of the Hidankyo remains: “Nuclear weapons are absolute evil that cannot coexist with humans. There is no choice but to abolish them.”

Addressing the UN Security Council last March, Secretary-General Antonio Guterres warned that with geopolitical tensions escalating the risk of nuclear warfare to its highest point in decades, reducing and abolishing nuclear weapons is the only viable path to saving humanity.

“There is one path—and one path only—that will vanquish this senseless and suicidal shadow once and for all.  We need disarmament now,” he said, urging nuclear-weapon States to re-engage to prevent any use of a nuclear weapon, re-affirm moratoria on nuclear testing and “urgently agree that none of them will be the first to use nuclear weapons.”

He called for reductions in the number of nuclear weapons led by the holders of the largest arsenals—the United States and the Russian Federation—to “find a way back to the negotiating table” to fully implement the New Measures for the Further Reduction and Limitation of Strategic Offensive Arms, or START Treaty, and agree on its successor.

“When each country pursues its own security without regard for others, we create global insecurity that threatens us all,” he observed.  Almost eight decades after the incineration of Hiroshima and Nagasaki, nuclear weapons still represent a clear danger to global peace and security, growing in power, range and stealth.”

“States possessing them are absent from the negotiating table, and some statements have raised the prospect of unleashing nuclear hell—threats that we must all denounce with clarity and force,” he said.  Moreover, emerging technologies such as artificial intelligence and cyber and outer space domains have created new risks.”

From Pope Francis, who calls the possession of nuclear arms “immoral”, to the hibakusha, the brave survivors of Hiroshima and Nagasaki, to Hollywood, where Oppenheimer brought the harsh reality of nuclear doomsday to vivid life for millions around the world, people are calling for an end to the nuclear madness.  “Humanity cannot survive a sequel to Oppenheimer,” he warned.

When Nagasaki marked the 78th anniversary of the U.S. atomic bombing of the city last year, the mayor Shiro Suzuki, urged world powers to abolish nuclear weapons, saying nuclear deterrence also increases risks of nuclear war, according to an Associated Press (AP) report.

He called on the Group of Seven (G7) industrial powers to adopt a separate document on nuclear disarmament that called for using nuclear weapons as deterrence.

“Now is the time to show courage and make the decision to break free from dependence on nuclear deterrence,” Suzuki said in his peace declaration. “As long as states are dependent on nuclear deterrence, we cannot realize a world without nuclear weapons.”

Russia’s nuclear threat has encouraged other nuclear states to accelerate their dependence on nuclear weapons or enhance capabilities, further increasing the risk of nuclear war, and that Russia is not the only one representing the risk of nuclear deterrence, Suzuki said.

Suzuki, whose parents were hibakusha, or survivors of the Nagasaki attack, said knowing the reality of the atomic bombings is the starting point for achieving a world without nuclear weapons. He said the survivors’ testimonies are a true deterrent against nuclear weapons use, the AP report said.

This article is brought to you by IPS Noram, in collaboration with INPS Japan and Soka Gakkai International, in consultative status with UN ECOSOC.

IPS UN Bureau Report

 


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Cambodia’s Young Environmental Activists Pay a Heavy Price

Credit: Tang Chhin Sothy/AFP via Getty Images

By Andrew Firmin
LONDON, Aug 1 2024 – It’s risky to try to protect the environment in authoritarian Cambodia. Ten young activists from the Mother Nature environmental group have recently been given long jail sentences. Two were sentenced to eight years on charges of plotting and insulting the king. Another seven were sentenced to six years for plotting, while one, a Spanish national banned from entering Cambodia, was sentenced in absentia.

Four of the activists were then violently dragged away from a peaceful sit-in they’d joined outside the court building. The five who’ve so far been jailed have been split up and sent to separate prisons, some far away from their families.

This is the latest in a long line of attacks on Mother Nature activists. The group is being punished for its work to try to protect natural resources, prevent water pollution and stop illegal logging and sand mining.

An autocratic regime

Cambodia’s de facto one-party regime tolerates little criticism. Its former prime minister, Hun Sen, ruled the country from 1985 until 2023, when he handed over to his son. This came shortly after a non-competitive election where the only credible opposition party was banned. It was the same story with the election in 2018. This suppression of democracy required a crackdown on dissenting voices, targeting civil society as well as the political opposition.

The authorities have weaponised the legal system. They use highly politicised courts to detain civil society activists and opposition politicians for long spells before subjecting them to grossly unfair trials. Campaigners for environmental rights, labour rights and social justice are frequently charged with vaguely defined offences under the Criminal Coder such as plotting and incitement. Last year, nine trade unionists were convicted of incitement after going on strike to demand better pay and conditions for casino workers.

In 2015 the government introduced the restrictive Law on Associations and Non-Governmental Organisations (LANGO), which requires civil society organisations to submit financial records and annual reports, giving the state broad powers to refuse registration or deregister organisations. In 2023, Hun Sen threatened to dissolve organisations if they failed to submit documents.

The state also closely controls the media. People close to the ruling family run the four main media groups and so they mostly follow the government line. Independent media outlets are severely restricted. Last year the authorities shut down one of the last remaining independent platforms, Voice of Democracy. Self-censorship means topics such as corruption and environmental concerns remain largely uncovered.

This extensive political control is closely entwined with economic power. The ruling family and its inner circle are connected to an array of economic projects. Landgrabs by state officials are common. These means land and Indigenous people’s rights activists are among those targeted.

In 2023, courts sentenced 10 land activists to a year in jail in response to their activism against land grabbing for a sugar plantation. That same year, three people from the Coalition of Cambodian Farmer Community, a farmers’ rights group, were charged with incitement and plotting. The LANGO has also been used to prevent unregistered community groups taking part in anti-logging patrols.

The activity that saw the Mother Nature activists charged with plotting involved documenting the flow of waste into a river close to the royal palace in the capital, Phnom Pen. It’s far from the first time the group’s environmental action has earned the state’s ire. The government feels threatened by the fact that Mother Nature’s activism resonates with many young people.

Three of the group’s activists were convicted on incitement charges in 2022 after organising a protest march to the prime minister’s residence to protest against the filling in of a lake for construction. In 2023, Mother Nature delivered a petition urging the government to stop granting land to private companies in Kirirom National Park; there’s evidence of licences going to people connected to ruling party politicians. In response, the Ministry of Environment said Mother Nature was an illegal organisation and that its actions were ‘against the interests of Cambodian civil society’.

Media also get in trouble if they report on the sensitive issue of land exploitation. In 2023, the authorities revoked the licences of three media companies for publishing reports on a senior official’s involvement in land fraud. In 2022, two teams of reporters covering a deforestation operation were violently arrested.

Regional challenges

Repression of environmental activism isn’t limited to Cambodia. In neighbouring Vietnam, the one-party communist state is also cracking down on climate and environmental activists. In part this is because, as in Cambodia, climate and environmental activism is increasingly shining a light on the environmentally destructive economic practices of authoritarian leaders.

Cambodia’s creeping use of the charge of insulting the king to stifle legitimate dissent also echoes a tactic frequently used in Thailand, where the authorities have jailed young democracy campaigners for violating an archaic lèse majesté law that criminalises criticism of the king. Other repressive states are following its lead – including Cambodia, where the law on insulting the king was introduced when the crackdown was well underway in 2018.

Cambodia provides ample evidence of how the denial of democracy and the repression that comes with it enable environmentally destructive policies that further affect people’s lives and rights. The solution to protect the environment and prevent runaway climate change is less repression, more democracy and a more enabled civil society.

Cambodia’s international partners should emphasise this in their dealings with the state. They should press the authorities to release the jailed Mother Nature activists, who deserve to spend the coming years helping make their country a better place, not rotting in prison.

Andrew Firmin is CIVICUS Editor-in-Chief, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

 


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Economic Prospects in Asia & the Pacific – Celebrate Resilience, Prepare for Headwinds

An elderly woman in China counted her money with worried feeling. Credit: World Bank / Curt Carnemark

By Kiatkanid Pongpanich
BANGKOK, Thailand, Aug 1 2024 – Economic performance in Asia and the Pacific has proved to be quite resilient to the shocks of the past few years – the COVID-19 pandemic, the ongoing wars in Ukraine and Gaza, and the cost-of-living crisis. In 2023, the region’s economy drove over 60 per cent of the global economic growth.

Positive economic conditions in the region are evident since the start of 2024. Economic growth picked up in major economies amid strong private consumption driven by steady employment and moderating inflation.

While not broad-based, exports also rebounded in several countries such as China, Pakistan, Philippines, Republic of Korea, Singapore, Sri Lanka, and Viet Nam after contraction in previous quarters. Yet, it is premature to say whether this trend will continue to gain further momentum.

For both 2024 and 2025, ESCAP projects the developing Asia-Pacific economies to grow on average at 4.4 per cent. Though quite decent, this is slower than the earlier projection of 4.8 per cent highlighted in 2023 and the average 5.4 per cent growth experienced in the pre-pandemic years of 2017-2019.

Domestic demand, especially household consumption, is likely to continue to drive economic growth as inflation is expected to decline from an average of 5.2 per cent in 2023 to 4.8 per cent in 2024 and 3.8 per cent in 2025. Despite this resilient performance, vigilance is needed as several near-term risks and challenges lie ahead.

First, China’s economic performance present both upside and downside risks. On the upside, the economic stimulus announced in May 2024 has the potential to lift public investment. Part of this stimulus includes measures to support the country’s property market which could help stabilize the downturn including falling house prices and boost confidence, although the pace and strength of recovery are uncertain.

While exports have been providing near-term support since the start of 2024, the expected slower-than-expected global growth, financial conditions that will remain tighter-for-longer and increased trade tensions present some downside risks.

As China accounts for over 40 per cent of the region’s economic output, its economic performance will have notable impacts on export performance of other regional peers and beyond.

Second, financial stability risks are on the rise in some Asia-Pacific countries as high debt servicing costs have weakened the debt repayment ability of not only governments but also firms and households.

For example, the proportion of default loans have increased between 0.5 to 2.5 percentage points since end-2022 in economies such as Bangladesh, Pakistan and Viet Nam where the non-performing loan ratio stands around 5 to 10 per cent.

Third, while policy rate cuts have begun in Canada and the European Union, similar monetary easing in the United States may come later than expected due to strong employment conditions and above-target inflation. This influences the monetary policy stance of Asia-Pacific central banks.

Even when inflation falls back within official targets, some central banks may still be reluctant to cut policy rates to guard against capital outflows and subsequent currency depreciations.

Fourth, the recent increases in global food and energy prices since the beginning of 2024 raise renewed concerns regarding inflation. Global oil prices have already increased by an average of 8 per cent so far in 2024 compared to 2023. Domestic policies will also play a role.

For example, the Malaysian government has announced a shift from blanket diesel subsidies towards a more targeted one, which could result in higher inflation.

Finally, continued geopolitical tensions in Ukraine and the Middle-East could disrupt supply chains through diversion of trading routes and further push up freight costs. For example, the Shanghai Containerized Freight Index, which measures the shipping costs from Asia to Europe, in May 2024 was about 180 per cent higher than the pre-Middle-East conflict level in October 2023.

Uncertainty regarding near-term economic outlook has direct implications for people’s socioeconomic wellbeing. Slower economic growth would lead to subdued job creation and wage growth. People’s purchasing power in Asia and the Pacific has already eroded, as the rise in wage earnings is struggling to keep up with inflation.

In many Asia-Pacific economies, over 60 per cent of those employed are informal workers who work in precarious jobs and have no social safety net to fall back on in case economic conditions worsen.

Furthermore, difficult economic conditions could constrain tax revenue collection, thus undermining government’s efforts to step-up investments in support of Sustainable Development Goals.

While we acknowledge the economic resilience of economies in Asia and the Pacific and the positive economic conditions evident so far since the start of 2024, policymakers must also be cognizant and prepared for the uncertainties that may unfold.

Kiatkanid Pongpanich is Senior Research Assistant, ESCAP

IPS UN Bureau

 


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