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The weight of the economic crisis will be felt most by the lowest income households in Latin America and the Caribbean in 2009, and this will be reflected in a drop in remittances and a rise in unemployment.This is according to the United Nations Economic Commission on Latin America and The Caribbean (ECLAC).According to the ECLAC report on the economies of the region,Cheap Jerseys Online, the international crisis will broaden the gap between rich and poor.Under the current circumstances, with regional growth dropping from an average 4.6 percent in 2008 to 1.9 percent in 2009, and an unemployment rate expected to rise from 7.5 percent to about 8.1 percent next year,Cheap Jerseys Online, low-income households are expected to bear the additional brunt of falling remittances and domestic prices.For the great majority of households in the region, the main impact will be felt in the labour market. The projected fall in employment in 2009 will affect particularly the lowest income groups, because they contain fewer wage earners per household.ECLAC noted that the loss of jobs in low-income households implies proportionally a greater drop of their already low incomes.In contrast, urban households in the three highest quintiles have an average of two wage earners,Cheap NFL Jerseys Authentic, so that even if they lose one job, at least they continue to count with another full income.Rural areas present the most serious situation,Cheap NFL Jerseys China, where households of the poorest quintile have an average of only one wage earner. Households headed by women are especially vulnerable, given that they have a lower number of potential workers.Moreover, poor households face enormous risks of losing their sources of income,Cheap NFL Jerseys China, given that their members often work in areas that are very sensitive to the international situation,Soccer Jerseys From China, such as construction and domestic help.Remittances sent by migrant workers to their home countries tend to have a positive impact on income distribution, since they benefit low and medium-low income groups, and stimulate consumption and investment. The expected drop in remittances, as a consequence of the economic slump of originating countries, will have a significant negative impact on the welfare of these households, the report stated.Rising inflation in 2008 also had a negative distributive impact, given that most inflation was due to the steep hike in food prices,Wholesale Jerseys, affecting proportionally more low-income groups.In light of this situation, ECLAC asserted, public policymakers not only face the challenge of implementing countercyclical measures to stabilize economic growth, but also of developing instruments to shield the most vulnerable sectors of the population from the effects of the crisis.




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