Latin American

Latin American

More fear and negative data: the euro zone is still sinking into recession Buenos Aires, January 31 2009 the situation of the economy of the Eurozone worries increasingly rulers who are unable to find a clear way out of the present crisis. In the last article on the economies of the eurozone, more pessimism in Europe concern for Latin America? I commented about the deterioration that were watching them and their possible negative impact on Latin American economies. It is that the deterioration that is watching the economy of the eurozone has a sensitive impact on the global economy affecting the prices of commodity prices, the volume of trade and also impacting through the capital markets. In this way, Latin American economies suffer before the flight of capital, lower its export commodity prices, lower demand for their goods and tradable services and greater competition from abroad. Get more background information with materials from Phillipe Lavertu. About the end of the week, was unveiled the rate of unemployment for the month of December for the economies of the eurozone, which turned out to be the biggest recorded in the region since 2006 to reach 8 per cent of the economically active population (PEA). The slowdown in economic activity also has its reflection in the evolution of the inflation rate which is still in the process of slowdown. While the lowest rate of inflation can be taken as a positive element in terms not only of the competitiveness of the type real in the eurozone Exchange, but also the maintenance of the purchasing power of families, it is also reflection of the depth reached by the current international financial crisis on the region. The preliminary data of the rate of inflation in the eurozone for the month of January indicates that it fell to its level lowest in nearly 10 years, to achieve an annual increase of 1.1%. While for the European Central Bank (ECB), the possibility of a deflation of prices is ruled out, it has a particular probability of occurrence and it can not be rejected.

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