Page 12 - Aruba Today
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A12 Brazil industry
WORLD NEWSThursday 17 September group: millions
Eurozone inflation revised down to 0.1 percent will lose jobs
PAN PYLAS economic activity a boost. As part of that stimulus, The news from Eurostat SAO PAULO (AP) — Millions
Associated Press Longer-term deflation en- the ECB is pumping 60 bil- prompted some weak- of workers will lose their jobs
LONDON (AP) — Inflation courages people to put off lion euros a month in newly ness in the euro as traders this year because of the
across the 19-country euro- spending and can prove printed money into the eu- priced in a growing expec- recession that has hit Latin
zone was revised down to difficult to reverse because rozone economy by buying tation of further stimulus — America’s biggest nation,
0.1 percent in the year to it requires altering people’s government and corporate the new money created a Brazilian industry federa-
August, in a development expectations. It can lead bonds. The program is slat- by the ECB can weigh on tion said Wednesday.
that’s likely to renew con- to years of economic stag- ed to run at least through the currency by diluting its The Rio de Janeiro State
cern that the region could Federation of Industries
see another bout of falling People walk past a shop called: ‘Cheap City’, selling discounted merchandise in central Athens. Wednesday said a job
prices and prompt more Inflation across the 19-country eurozone was revised down to 0.1 percent in the year to August, market analysis it recently
stimulus measures from the in a development that’s likely to renew concern that the region could see another bout of falling conducted shows that be-
European Central Bank. prices and prompt more stimulus measures from the European Central Bank. tween 1.2 million and 1.6
Figures released Wednes- million jobs will be lost in
day by the European (AP Photo/Lefteris Pitarakis) 2015 — the worst contrac-
Union’s statistics agency tion in 17 years.
showed that the revision nation, as in Japan over September 2016 and is in- value. The euro was trad- Previously, the worst figures
in consumer price inflation the past two decades, or tended to help get inflation ing 0.4 percent lower at had been registered in
from the initial estimate of at worst, into something back to target. ECB Presi- $1.1230. 1998 when Brazil lost nearly
0.2 percent was largely due more pernicious, such as dent Mario Draghi hinted “The chance of further 580,000 formal jobs.
to a sharp drop in energy the Great Depression of the this month that the bank is stimulus from the ECB is “We don’t see any signs of
prices reflecting weakness 1930s. ready to give the eurozone growing, which could act improvement in the short
in the global price of oil. It’s those fears that prompt- a bigger dose of stimulus, to weaken the euro in term,” federation econo-
Given that inflation is way ed the ECB to launch a which could involve buying the coming months,” said mist Marcelo de Avila told
below the ECB’s target of 1.1 trillion-euro ($1.2 trillion) more bonds or extending Craig Erlam, senior market the Folha de S. Paulo news-
just under 2 percent and monetary stimulus this year. the length of the program. analyst at OANDA.q paper. The government’s
is widely expected to fall Institute for Applied Eco-
further in coming months, nomic Research said ear-
there are growing expec- lier this month that more 1
tations the central bank will million formally registered
increase its stimulus efforts workers could lose their
— especially if the euro- jobs by year’s end.
zone sees an outright fall in In late August, the govern-
prices for the first time since ment statistics bureau IBGE
March. said Brazil’s gross domestic
At first glance, deflation, product contracted for the
which is generally defined second consecutive quar-
as a sustained drop in pric- ter, sending the Brazilian
es, sounds good as it allows economy into a technical
consumers to buy things for recession.
less. The problem lies when The bureau said the econ-
prices fall consistently over omy shrank 1.9 percent in
time for a range of goods the second quarter com-
— as opposed to tempo- pared with the previous
rary declines prompted three months. Gross do-
by, say, a fall in prices at mestic product in the first
the pump, which can give quarter contracted 0.7
percent.
Metro Manila traffic costing Philippines $64M a day Brazil’s economy has been
hit by a drop in interna-
TERESA CEROJANO ed to 2.4 billion pesos ($51 corruption-free. Some of due to El Nino — a general tional commodity prices,
Associated Press million) a day, Economic the big ticket projects un- warming of parts of the Pa- sluggish global economic
MANILA, Philippines (AP) — Planning Secretary Arsenio der the public-private part- cific that changes weather growth, rising inflation and
Metropolitan Manila’s no- Balisacan said. With a big- nership program have also worldwide — are among high interest rates.
torious traffic jams are cost- ger population today and encountered bidding prob- the domestic risks to the “We calculate that be-
ing the Philippine economy more vehicles on the roads, lems. “It makes sense really economy’s growth. tween 1.5 million and 2 mil-
at least 3 billion pesos ($64 and taking into consider- to fast-tract the completion Balisacan said the econ- lion workers in the formal
million) a day and infra- ation other costs including of all these infrastructure omy is expected to grow and informal job markets
structure projects need to to the health of commut- projects because the costs 6-6.5 percent this year, will lose their jobs because
be fast-tracked to address ers, Balisacan said 3 billion are immense even from down from previous esti- of recession,” economist
the problem, the country’s pesos is a conservative esti- a strictly economic point mates, but still among the Gesner Oliveira, president
chief economic planner mate. The cost over a year is of view,” he told a foreign fastest in the region. of Sao Paulo consulting
said Wednesday. 0.8 percent of gross domes- correspondents’ forum. He said the El Nino phe- firm GO Associados said in
A study in 2012 by the Ja- tic product. Government The government aims to nomenon affecting parts a Wednesday email.
pan International Coop- infrastructure spending has spend at least 5 percent of the country is expected “Given that the economy
eration Agency found that been delayed, with agen- of GDP on infrastructure to last until early next year is not expected to resume
time lost by people stuck in cies underspending due to by next year. Delays in in- and has been forecast to growing until 2017, the
traffic and the extra cost of difficulty in complying fast frastructure and disaster be as intense as the El Nino job market will continue
operating vehicles in grid- enough with new require- reconstruction projects, in 1997-1998 which cut ag- to weaken next year,” he
lock in metropolitan Manila ments to make public fund- and natural hazards such ricultural production by 24 said.q
and nearby areas amount- ing more transparent and as typhoons and drought percent. q
