World

Stock markets fall, yen rallies after BoJ policy move

Markets fell Tuesday and the yen rallied after Japan announced a surprise tweak to its ultra-loose monetary policy, just as traders were fretting that central bank efforts to tame inflation will tip economies into recession.

Sentiment was also being weighed down by a spike in Covid infections in China as officials roll back many of the strict containment measures that have been in place for almost three years.

A so-called Santa rally appears to be eluding investors, with the mood dampened by last week’s warnings from the Federal Reserve and European Central Bank that they will likely push interest rates higher than expected next year.

The remarks dealt a blow to a short rally across equities that had been fuelled by data showing inflation coming down.

Adding to the selling pressure were comments from former New York Fed chief William Dudley, who told Bloomberg Television that any sign of optimism in markets could make monetary policymakers tighten even more.

Tokyo sank more than two percent after the Bank of Japan adjusted its parameters for controlling bond yields, in a shift away from its long-running dovish stance of keeping rates ultra-low to boost the struggling economy.

Inflation in Japan has risen sharply this year, with the consumer price index in October at 3.6 percent, the highest in four decades, though bank boss Haruhiko Kuroda and other officials have said that would be temporary, citing a lack of strong demand and wage rises.

The move sent the yen to 132.30 per dollar, its strongest level since August.

The Japanese unit has been hobbled this year by the BoJ’s determination to stick to its loose monetary policy — hitting a 32-year low of around 150 to the dollar in October — even as the Fed ramped up borrowing costs. 

– No Santa rally –

“This was bound to happen with inflation rising in Japan, it’s just happened sooner than many thought,” Amir Anvarzadeh, of Asymmetric Advisors, said. “It could spark money flowing back into Japan.”

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, Mumbai, Jakarta and Bangkok were also in the red.

London, Paris and Frankfurt all sank at the open.

“Those who were in the camp of a year-end rally are now second-guessing their investment thesis,” said JC O’Hara of MKM Partners.

“The markets may have placed a little too much faith in Santa Claus and the rally he typically brings.”

With few catalysts to drive trade, investors are winding down for the Christmas break, though they are keeping a close eye on developments in China, which is suffering a sharp jump in Covid cases.

Officials in recent weeks have started to move away from their rigid zero-Covid policy of lockdowns and mass testing following widespread protests.

And while the shift has been welcomed as a much-needed boost to the world’s number-two economy, there is growing anxiety about the immediate impact on businesses and the healthcare system.

“A massive China reopening bounce is giving way to a reality check as investors come to grips with numerous zero-Covid offramp economic and medical issues that China is simply unprepared to handle,” said SPI Asset Management’s Stephen Innes.

“Especially if the predicted 10 million-plus daily Covid cases hit the healthcare system later this month.”

Still, the expected pick-up in demand from the China reopening continues to support commodity prices, with both main oil contracts up more than one percent, extending Monday’s gains.

The impact of Covid and weaknesses in the country’s vast property sector led the World Bank on Tuesday to slash its China growth forecasts to 2.7 percent this year, from 4.3 percent predicted in June. It also revised its forecast for next year from 8.1 percent down to 4.3 percent. 

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: DOWN 2.5 percent at 26,568.03 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 19,094.80 (close)

Shanghai – Composite: DOWN 1.1 percent at 3,073.77 (close)

London – FTSE 100: DOWN 0.7 percent at 7,312.94

Dollar/yen: DOWN at 132.39 yen from 136.95 yen on Monday

Euro/dollar: UP at $1.0623 from $1.0610 

Pound/dollar: DOWN at $1.2146 from $1.2148

Euro/pound: DOWN at 87.44 pence from 87.31 pence

West Texas Intermediate: DOWN 0.2 percent at $75.07 per barrel

Brent North Sea crude: DOWN 0.3 percent at $79.58 per barrel

New York – Dow: DOWN 0.5 percent at 32,757.54 (close)

Japan central bank tweaks monetary policy, yen strengthens

Japan’s central bank tweaked its longstanding monetary easing programme on Tuesday, in a surprise move that saw the yen strengthen quickly against the dollar and prompted falls on Tokyo bourses.

The change marks a rare shift of gears for the dovish central bank, which has largely left its policy intact even as counterparts in other major economies hike rates to tackle inflation.

After a two-day policy meeting, the bank said it would widen the band in which it would allow rates for 10-year Japan government bonds to move, saying it would “improve market functioning”.

“The Bank will expand the range of 10-year JGB yield fluctuations from the target level: from between around plus and minus 0.25 percentage points to between around plus and minus 0.5 percentage points,” it said in a statement.

The move saw the yen strengthen rapidly against the dollar, with the greenback falling from a daily high of 137 yen to 133 yen within minutes of the decision.

The announcement came during the morning break in Tokyo trade, but the key Nikkei 225 index plunged as it reopened, falling as much as three percent before recovering slightly.

Few had anticipated the shift, with all 47 of the economists surveyed by Bloomberg ahead of the decision saying they expected no change in policy.

The bank left the rest of its longstanding loose monetary programme intact, including its years-old inflation target of two percent.

Governor Haruhiko Kuroda, whose term ends next spring, has for years struggled to steer the world’s third largest economy towards sustained two percent inflation, seen as necessary for growth.

Prices in Japan have risen sharply this year, with the consumer price index in October at 3.6 percent, the highest in four decades.

But Kuroda and the central bank consider the increases temporary, citing a lack of strong demand and wage rises.

Speaking to reporters on Tuesday afternoon, Kuroda insisted the shift “is not the first step of an exit strategy”.

“Once the price stability target draws closer, the monetary policy board will discuss strategies toward the exit and will make information public accordingly,” he said.

– ‘A sense of policy flexibility’ –

Still, the BoJ has come under pressure to move away from its ultra-loose policy as central banks in other major economies hike interest rates to tackle inflation.

The resulting differential has seen the yen nosedive about 20 percent against the dollar this year.

Hideo Kumano, chief economist at Dai-ichi Life Group, said the decision showed the bank recognised its existing policy was no longer tenable.

“It has been unrealistic to try to cap the long-term yield with the fixed-rate bond-buying operations at 0.25 percent,” he told AFP.

“It seems to me that the bank wanted to create a little bit of a sense of policy flexibility or room for policy choices and pass the baton to the next governor,” he added.

Kuroda’s term ends in April, and over the weekend reports suggested Japan’s government could work with his successor to move away from the longstanding two-percent price target.

The bank’s decision Tuesday sent shockwaves through Asian markets, with stocks falling on regional bourses as investors digested the news.

“In reality, the long-term rate will become 0.5 percent. It will reduce the rate gap between Japan and the US,” said Kumano.

But Kuroda was at pains to insist “this is not a rate hike”.

Saisuke Sakai, chief economist of Mizuho Research & Technologies, said the move would help address the weaker yen caused by the growing gulf between US and Japanese central bank policy.

But “unlike rate hikes by the Fed and European central banks aimed at cooling down overheated economies… this is aimed chiefly at stabilising market function,” he told AFP.

“Japan’s economy has not recovered to the pre-pandemic level yet, in contrast to the US economy,” he noted.

Kim's sister defends North Korea's spy satellite capabilities

North Korea has developed advanced technologies to take images from space using a spy satellite, the powerful sister of leader Kim Jong Un insisted Tuesday, after experts mocked black-and-white pictures supposedly taken from space in a weekend launch.

Kim Yo Jong’s defence of North Korea’s satellite capabilities comes after the isolated country said it conducted an “important final-stage” test for the development of a reconnaissance satellite.

But experts in Seoul quickly raised doubts, saying the quality of the photos — presumably taken from the satellite — was too poor. 

In a lengthy, vitriolic statement carried by the official Korean Central News Agency, Kim said it was “too inappropriate and careless” to evaluate Pyongyang’s satellite development progress and capability based on the two images.

She insisted a camera installed on the satellite had the “reliability of ground control including attitude control and shooting control command in a suitable space flight environment”. 

Kim also said the satellite’s data transmission devices and encryption processing technology were reliable. 

“We carried out a necessary test and reported the significant and satisfying result, which was not lacking,” she said. 

The development of a military reconnaissance satellite was one of Pyongyang’s key defence projects outlined by her elder brother Kim Jong Un last year.

North Korea is under biting international sanctions for its nuclear weapons programmes, but peaceful satellite launches are not subject to the same level of restrictions.

But analysts say developing such a satellite would provide North Korea with cover for testing banned intercontinental ballistic missiles (ICBM), as they share much of the same technology.

Earlier this year, Pyongyang carried out two launches, claiming it was testing components for a reconnaissance satellite, which the United States and South Korea said likely involved components of its new Hwasong-17 intercontinental ballistic missile (ICBMs). 

The younger Kim rebuked claims that the North’s satellite launches were thinly disguised firings of banned ICBMs. 

“If we develop ICBMs, we will fire ICBMs, and not test long-range rockets disguised as satellites,” she said.

Kim also dismissed analysts doubting that the North has the advanced technology needed for the rocket to survive re-entry into the Earth’s atmosphere, saying she would explain it in “an easy-to-understand manner” to their naysayers. 

“If the atmospheric re-entry technology was insufficient, it would not be possible to receive remote data from the pilot combat unit until the moment of impact,” she said.

– Air drill –

The weekend’s launch comes after a year of unprecedented weapons tests by North Korea, including the launch of its most advanced intercontinental ballistic missile the month before.

The United States and South Korea have warned for months that Pyongyang is preparing to conduct its seventh nuclear test.

The two countries held a joint air drill on Tuesday, and deployed a US B-52H strategic bomber to the Korean peninsula, the South Korean Joint Chiefs of Staff said in a statement.

The long-range heavy bomber was part of an exercise that included the US and South Korea’s most advanced jets — including the F-22 and the F-35 stealth fighters. 

Experts say North Korea is particularly sensitive about US-South Korean joint air drills, as its air force is one of the weakest links in its military, lacking high-tech jets and properly trained pilots. 

Ghana labour unions call for strike over local debt swap

Ghana’s main unions on Monday called for a nationwide strike from next week in protest against the inclusion of workers’ pensions in a local debt swap programme as part of the terms for an IMF credit.

A top cocoa and gold producer, Ghana has oil and gas reserves but its debt payments are high and its revenues weak. 

Like the rest of Africa, it has been hit by economic fallout from the global pandemic and the Ukraine war. 

Two weeks ago, the west African nation offered investors a domestic debt swap to ease a crunch in payments. 

But labour unions refuse to have pension funds included in the exchange.

The unions met in the capital Accra on Monday and told reporters they had called a strike to compel the government to heed their demand.

“We have decided firmly that because the government has refused to grant us our request that all pension funds must be exempted from the domestic debt exchange programme, all workers of Ghana are going to strike on 27 December 2022,” said Yaw Baah, secretary general of Trades Union Congress.

“We will be on strike until our demand has been granted,” he said.

Baah called on workers to stay at home.

“We will stay at home until the government acts. That is straight forward and very simple,” he said. 

“We won’t sit down for the vulnerable people to suffer because somebody has made mistakes.”

Labour unions present at the press conference included the Ghana National Association of Teachers (GNAT), the Ghana Medical Association, the University Teachers Association of Ghana (UTAG), the Ghana Registered Nurses and Midwives Association and the Teachers and Educational Workers Union (TEWU).

The government has so far not responded to the strike threat.

The West African state is facing an economic crisis, with inflation at more than 50 percent and its cedi currency down sharply, hit by the adverse effects of the global pandemic and Ukraine conflict. 

The crisis forced President Nana Akufo-Addo’s government to reverse its position earlier this year and seek International Monetary Fund help as economists warned of a default on debt payments.

Ghana and the IMF have agreed on a three-billion-dollar credit, but the fund’s board has yet to approve the deal.

Ghana on Monday announced it was suspending payments on part of its foreign debts.

Hong Kong exchange headed to worst IPO finish in a decade

Hong Kong’s stock exchange is on track for its weakest year since 2012 for new listings as the city reeled from the pandemic, rising interest rates and China’s economic uncertainty, according to data released Tuesday.

Hong Kong Exchanges and Clearing (HKEX) said this year it had 69 new listings raising HK$87.8 billion ($11.3 billion) as of November 30, down 74 percent from the year before.

The bourse said “renewed momentum” in the second half of the year accounted for nearly two-thirds of the IPOs, following a slump during the city’s worst-ever coronavirus outbreak.

“The macroeconomic and geopolitical backdrop led to weak sentiment and softness in the global IPO market,” the exchange said.

The latest figures were a steep drop from peak levels in 2020 when IPOs raised HK$400 billion, as Hong Kong benefited from the bonanza of Chinese mega-companies opting to list closer to home.

Before the pandemic Hong Kong’s bourse was often crowned as the top IPO venue in the world, drawing more than 100 new listings annually between 2013 and 2020.

HKEX shares have lost 28.3 percent since the start of the year while the city’s flagship Hang Seng Index is down 18 percent.

But both have seen a rebound in the past six weeks. 

As China pivots towards reopening, bankers and analysts expect a slew of mid-sized Hong Kong deals in the first quarter will drive a recovery in listings.

“With the transition toward a reopening, we anticipate several delayed Chinese IPOs and follow-on transactions to occur in the near term,” Murli Maiya of JPMorgan Chase in Hong Kong told Bloomberg News.

Victoria Lloyd, a partner in Baker McKenzie’s Hong Kong office, said she expected the IPO pipeline to pick up after Chinese New Year.

“With China opening up, everyone is hoping that next year will be a better year — because there is a solid IPO pipeline, with a series of companies that have submitted applications for listings or are waiting to do so,” Lloyd told Bloomberg.

HKEX said Tuesday that it had bolstered its popular “Connect” franchise this year that links to bourses in Shanghai and Shenzhen, which will soon extend to interbank interest rate swap markets.

This year Hong Kong also saw the listing of four special purpose acquisition companies (SPACs) — investment vehicles sometimes called “blank cheque” companies.

HKEX started to allow SPAC listings this year, subject to a strict framework, in a bid to boost competitiveness following in the steps of regional rival Singapore.

But SPACs have largely fallen out of favour this year on Wall Street amid rising inflation, interest rate hikes and a looming recession.

Tokyo exhibit showcases Dior's passion for Japan

A hit exhibition showcasing Christian Dior’s work opens in Tokyo this week with a focus on the French designer’s fascination with Japan and the country’s influence on his pieces.

“Christian Dior: Designer of Dreams” arrives in Japan after drawing huge crowds in Paris, London and New York.

Opening Wednesday, the exhibition features 350 haute couture dresses — including Japan-inspired gowns displayed in settings intended to pay tribute to Japanese culture.

Architect Shohei Shigematsu created structures including a room covered with an undulating three-dimensional facade constructed from translucent traditional washi paper pasted over wooden frames.

“When Dior makes a skirt, there is a structure and then the fabric is laid on top of it,” he told AFP.

“I was asked to create a Japanese traditional structure, so I thought about shoji screens, for example, which have a wooden structure and are covered with paper.”

Each section features a different interior design intended to show various parts of Japanese culture. 

“There is a section inspired by an orderly tatami room separated by sliding doors. But not everything in Japan is simple and minimal,” he said.

“We have different designs like Japanese gardens and flashy kimonos. I wanted to show the sides of Japan people don’t know.”

The Dior house first presented a show in Japan in 1953, and the designer had a well-known fascination with the country.

“Dior had a lot of respect for traditional Japanese culture and he wrote about it in his memoir,” curator Florence Muller told AFP.

“I think there is a mutual fascination between France and Japan.”

Starting in the 1950s, Dior also collaborated with Japanese companies, giving them the rights to adapt and reproduce Dior looks to cater to local tastes.

In a sign of the brand’s popularity, Japan’s former empress Michiko chose a Dior gown made from Japanese textiles when she married then-prince Akihito in 1959.

The Tokyo show, which runs until May 28, includes archive pieces as well as works by more recent creative directors, and showcases several items inspired by Japan.

Among them is a John Galliano coat with “The Great Wave Off Kanagawa” print emblazoned on the base of its full skirt, and robes cinched with Japanese obi-style belts created by Raf Simons.

Dior’s austere jacket dress named “Rashomon” — the name of a Japanese novel and film directed by the legendary Akira Kurosawa — is also on display.

“This exhibition shows the mutual respect between Japan and France in their approach to crafts, fashion, design and art,” said Shigematsu.

Tokyo exhibit showcases Dior's passion for Japan

A hit exhibition showcasing Christian Dior’s work opens in Tokyo this week with a focus on the French designer’s fascination with Japan and the country’s influence on his pieces.

“Christian Dior: Designer of Dreams” arrives in Japan after drawing huge crowds in Paris, London and New York.

Opening Wednesday, the exhibition features 350 haute couture dresses — including Japan-inspired gowns displayed in settings intended to pay tribute to Japanese culture.

Architect Shohei Shigematsu created structures including a room covered with an undulating three-dimensional facade constructed from translucent traditional washi paper pasted over wooden frames.

“When Dior makes a skirt, there is a structure and then the fabric is laid on top of it,” he told AFP.

“I was asked to create a Japanese traditional structure, so I thought about that shoji screens, for example, which have a wooden structure and are covered with paper.”

Each section features a different interior design intended to show various parts of Japanese culture. 

“There is a section inspired by an orderly tatami room separated by sliding doors. But not everything in Japan is simple and minimal,” he said.

“We have different designs like Japanese gardens and flashy kimonos. I wanted to show the sides of Japan people don’t know.”

The Dior house first presented a show in Japan in 1953, and the designer had a well-known fascination with the country.

“Dior had a lot of respect for traditional Japanese culture and he wrote about it in his memoir,” curator Florence Muller told AFP.

“I think there is a mutual fascination between France and Japan.”

Starting in the 1950s, Dior also collaborated with Japanese companies, giving them the rights to adapt and reproduce Dior looks to cater to local tastes.

In a sign of the brand’s popularity, Japan’s former empress Michiko chose a Dior gown made from Japanese textiles when she married then-prince Akihito in 1959.

The Tokyo show, which runs until May 28, includes archive pieces as well as works by more recent creative directors, and showcases several items inspired by Japan.

Among them is a John Galliano coat with “The Great Wave Off Kanagawa” print emblazoned on the base of its full skirt, and robes cinched with Japanese obi-style belts created by Raf Simons.

Dior’s austere jacket dress named “Rashomon” — the name of a Japanese novel and film directed by the legendary Akira Kurosawa — is also on display.

“This exhibition shows the mutual respect between Japan and France in their approach to crafts, fashion, design and art,” said Shigematsu.

Thai rescuers hopeful for missing sailors as search enters second day

Rescuers in helicopters scoured the Gulf of Thailand on Tuesday for dozens of sailors who went missing when their naval vessel sank, hoping life jackets had helped them survive two nights in the choppy waters.

Seventy-five sailors from the HTMS Sukhothai were hauled from the sea after the vessel went down late Sunday in the Gulf of Thailand, roughly 37 kilometres (22 miles) off the country’s southeastern coast. 

Four vessels — the HTMS Kraburi, HTMS Angthong, HTMS Naresuan and HTMS Bhumibol Adulyadej — two planes, and four helicopters were scanning the turbulent waters for 30 missing sailors, the navy said.

“I am hopeful we will find some survivors, because they have life vests,” said naval officer Narong Khumburi.

“But I imagine they must be exhausted.”

The navy had initially reported that 106 people were aboard the vessel, but revised that figure down to 105 on Tuesday.

At the pier in Prachuap Khiri Khan province, families of those missing gathered to wait for news as anxiety over their loved ones mounted.

Malinee Pudpong, 54, from Roi Et province, said her sister’s son, 21-year-old Saharat Esa, was onboard.

“I came here to look at the waves and I’m thinking, ‘For god’s sake, where is my (nephew)?'” she said.

Efforts to find the missing crew were focused on aerial searches, with the Royal Thai airforce assisting the operation, which has been affected by strong winds.

Tuesday’s waves were still high, navy spokesperson Admiral Pogkrong Montradpalin said, noting the search area had grown and was focusing “on the area near shores, according to the currents and the wind”.

Naval commander Pichai Lorchusakul, speaking at the same pier, said that he remained confident.

“We have full hope,” he said.

Sahachart Limcharoenphakdee, a member of the National Institute for Emergency Medicine, said they were working with naval personnel to care for those plucked from the waters.

“I am hopeful, and have trust for the navy rescue team, who are skilful,” he said.

Mother Phongsri Suksawat, 50, said she hoped “100 percent” that her 22-year-old youngest son Chirawat Toophorm would come home.

“I thought it would be fine and nothing bad would happen from the storm,” she said, adding that before he went on the ship her son asked her to care for his wife.

“I would like to hug him.”

– Electrical fault –

Late Monday night, naval commander Pichai told reporters at the pier that they remained focused on finding survivors.

“Our main priority is searching (for) and rescuing as many as we can,” he said, adding it was the first time that the Thai navy had lost a ship this way.

The vessel — a corvette, the smallest type of military warship — is believed to have run into trouble after its electronics system was damaged, according to the navy.

“The ship’s operating systems stopped working, causing the ship to lose control,” a spokesperson said.

Parts of southern Thailand have been hit by storms and flooding in recent days.

A warning from the Thai meteorological office remained in place Tuesday, with strong winds causing rough conditions in the Gulf of Thailand, and seafarers cautioned to be careful and small boats to stay ashore.

The HTMS Sukhothai was commissioned in 1987 and built in the United States by the now-defunct Tacoma Boatbuilding Company, according to the US Naval Institute.

'Asterix' takes on new writer for 2023 instalment

Popular French comic book series “Asterix” will turn a new page for its forthcoming 40th volume, with a new writer chosen to pen next year’s instalment, the publisher said Tuesday.

French novelist and comic book author Fabcaro, who is known for his absurdist humour, will be the fourth scriptwriter to carry on the adventure of the indomitable Gaul who stood against the Romans.

As is tradition, the next volume will come out in an odd-numbered year, with the latest release planned for October 26, 2023, publisher Albert Rene said.

The title of the forthcoming book remains a secret.

Asterix — defender of the last Gaulish village holding out against the Roman empire — was dreamed up in 1959 by Rene Goscinny, who died in 1977, and Albert Uderzo, who died in 2020.

The comic books have sold hundreds of millions of copies worldwide.

Before the Asterix series, there was no history of comics having a scriptwriter.

Fabcaro, 49, said he was excited to be taking on the task.

“I was a huge fan of Asterix. This is a great gift to the child that I once was,” he said.

“I want to stay faithful to… what makes Asterix so appealing. With classic ingredients such as the anachronisms, the puns… And especially remain faithful to the characters.”

As the new writer Fabcaro follows in the footsteps of previous authors Goscinny, Uderzo and Jean-Yves Ferri.

He is well-known for his 2015 comic “Zai Zai Zai Zai”, in which a man goes on the run after forgetting a shop loyalty card.

The upcoming “Asterix” book is to be illustrated by Didier Conrad, who has been in the job since Uderzo named him as his successor for the 35th volume in 2013.

Greek woodcutters give energy crisis the chop

Huddled around a campfire sipping hot tea, a group of Greek lumberjacks take a badly needed break in an oak forest not far from the Albanian border.

With petrol and gas bills increasing, loggers in northern Greece say they are doing their best to keep up with rising demand for wood, considered a more affordable option for people to heat their homes.

Many Greeks, still reeling from their country’s decade-long economic crisis, are desperate to counteract energy prices soaring on the back of Russia’s war in Ukraine and national inflation running at over eight percent.

“We have had an increase in demand,” said timber transporter Yannis Paligiannis, 44.

“People are thinking of turning their heating to wood, but next year what will happen? Nobody is sure that next year wood won’t be more expensive than petrol. Everyone is wary,” he added.

For now, an abundant local supply makes firewood the best option in the north of Greece where temperatures dip well below zero Celsius (32 Fahrenheit) in deep winter.

“People here can get through winter by spending 300-400 euros ($320-425) on firewood, perhaps even cheaper if they transport it and chop it themselves,” Zisis Giakopoulos, a pensioner in his late 60s from the village of Aimilianos in the northwestern region of Grevena, told AFP.

“Many of them also use the firewood in stoves on which they also heat their food,” Giakopoulos added.”

In comparison, figures recently compiled by Greek insurance website Pricefox showed a 80-square-metre flat needing to spend some 650 euros on petrol fees, nearly 1,000 euros on air-conditioning and nearly 1,300 euros for gas heating to get through winter. 

Paligiannis says 70 percent of the firewood sold in Greece comes from Grevena, this mountainous region not far from the border with Albania.

“There is a higher demand for wood compared to last year because of the energy crisis, but we shouldn’t abuse the forest,” cautioned lumberjack Dimitris Basnas, 34.

“If the trees are old and tall, it’s slow work. You don’t get a lot of quantity. If it’s a younger forest you get more.”

– ‘Villages are deserted’ –

Greece has nearly 270 cooperatives with some 8,500 forestry workers registered at the environment ministry.

But despite heightened demand this year, the future of the profession is by no means guaranteed.

Numbers are dwindling, with younger people opting for less back-breaking work. Most of the wood is still transported by mule through thick foliage.

“We learnt this trade from our grandparents and we carry on the same way,” says Thanassis Papanikolaou, president of a forestry cooperative that produces about 10,000 tonnes of firewood every year.

Opening access roads to vehicles through the forest is forbidden, he adds.

“My father managed to raise five children doing this job,” says 62-year-old Yiorgos Koutoulas, the group’s eldest member, who is near retirement. 

“When I leave there is no young person to replace me,” he added.

“All the villages are deserted. The young people have left to work in the big cities,” he said.

According to forestry maps — which are a decade old in a country that experiences annual wildfires — nearly 50 percent of Greek territory is made up of forest cover.

Logging figures show a timber production of nearly 700,000 cubic metres last year, down from nearly 895,000 a decade ago and from nearly 720,000 in 2020.   

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