The World in Brief - The Economist Roundup

The World in Review

The Economist Roundup

Israel’s long war in Gaza

On Monday Israel’s army said that it would start withdrawing some troops from Gaza. Reservists from two brigades are to be sent home this week; three others would return to Israel for training. The mobilization of more than 300,000 reservists has been a strain on the country’s economy—it may have contracted by 2% in the fourth quarter of 2023. Sending some people home may help ease a labour shortage. It could also appease President Joe Biden, who has pushed Israel to shift its tactics in Gaza.

But it does not signal an end to the war. Daniel Hagari, the army spokesman, said there is “prolonged fighting” ahead in 2024. The UN says 85% of Gaza’s 2.2m people have been displaced. The World Food Programme warns of looming famine: 26% of the population is already facing extreme hunger. For residents of Gaza, the new year may prove even bleaker than the last one.

Europe's Industry hope for a better 2024

Industry around the world is stuck. Surveys show that global manufacturers, which experienced a boom after the covid pandemic, largely stagnated in 2023. In Europe, it has been considerably worse. The sector is in a severe downturn and the latest production figures from October showed a continued decline. December’s figures from the eurozone’s widely-watched purchasing managers’ index (PMI), released on Tuesday, were only marginally better than the last.

The survey showed that production numbers were still in decline, strongly suggesting a recession in the fourth quarter. Poland, the largest non-euro country in the EU, clocked steeper falls than the previous month. The global outlook has not improved much either. China’s PMI numbers for manufacturing declined for a third month in a row in December. Still, the forward-looking parts of the latest questionnaires received more positive feedback, signalling that things might be bottoming out. After a bad year, things can only get better.

Israel Judiciary struck down controversial law

Israel’s Supreme Court struck down a controversial law that would have all but eliminated the court’s ability to overturn government decisions on grounds of “reasonableness”. The law sparked nationwide protests when passed by parliament in July; the ruling could cause a constitutional crisis. Separately, Israel’s armed forces said they would withdraw five brigades from Gaza, though they reaffirmed the goal of toppling Hamas.

Somalia calls for meet over Somaliland - Ethopia port deal

Somalia’s cabinet called an emergency meeting to discuss a deal between Somaliland and Ethiopia over access to a coastal port. Somaliland seceded from Somalia in 1991 but is not recognised as a state by either the UN or the African Union. Under the pact, Somaliland will give landlocked Ethiopia access to Berbera, on the Red Sea. The news comes only days after Somalia and Somaliland agreed to resume political dialogue after three years of deadlock.

Earthquakes hit Japan

Japan’s meteorological agency said 155 earthquakes had struck the country since Monday, the largest of which had a magnitude of 7.6. At least 30 people have been reported dead and dozens more injured as rescue teams struggled to reach affected areas. The meteorological agency warns that more quakes could occur in the coming days.

Russo - Ukraine Escalating tensions

Russia unleashed a barrage of missiles and drones on Kyiv, Ukraine’s capital, and Kharkiv, a north-eastern city. Volodymyr Zelensky, Ukraine’s president, said the strikes killed four people and injured at least 92. Around 250,000 people were left without power. On Monday President Vladimir Putin vowed to “intensify” attacks in response to Ukraine’s shelling of Belgorod, a Russian city, which local officials say killed 25 people. Meanwhile, Mr Zelensky told The Economist he does not detect “any fundamental steps” towards peace from Russia.

India ventures into Cosmic Exploration

The Indian Space Research Organisation launched XPoSat, a $30m satellite that will be used to study black holes. It is the second such mission after NASA launched a similar space observatory in 2021. India’s space agency has been expanding its ambitions. In August it successfully landed a spacecraft on the Moon—only the fourth country to do so.

Maersk halts Red sea sailing

Maersk, a Danish shipping giant, again paused sailings through the Red Sea after Iran-backed Houthi rebels from Yemen attacked another of its container ships. Many shipping firms suspended routes through the sea in December; Maersk only resumed sailing on the 24th. On Saturday militants tried to hijack the Maersk Hangzhou; on Sunday American navy helicopters destroyed three of the Houthis’ attack vessels and killed ten militants.