International

Brazilian unemployment rate drops slightly from record level

AFP

Brazil’s unemployment rate pulled marginally back from record levels to 14.6 percent in the rolling March to May quarter, according to official figures released on Friday.

Unemployment in Latin America’s largest economy had been at a record 14.7 percent since the January to March quarter.

It amounts to 14.8 million people being out of work, the IBGE statistics institute said.

Compared to the March to May period in 2020, when the rate was 12.9 percent, there are 2.1 million more people unemployed.

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Experts believe the only way to reactivate the economy would be through progress with the country’s coronavirus vaccination program.

Over the past 18 months since the pandemic appeared, more than 550,000 Brazilians have died of Covid-19.

However, it will take time for economic activity to catch up with increased immunizations.

“In a climate of increased uncertainty … business people are postponing investments and formal contracts,” said Paulo Peruchetti, from the Brazilian institute of economics at the Getulio Vargas foundation.

“This level of uncertainty will probably remain high due to financial risks and political turmoil, which should increase in 2022 with a highly polarized presidential election.”

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Far right President Jair Bolsonaro is expected to face fierce competition from leftist former leader Luiz Inacio Lula da Silva.

Peruchetti said the informal sector would be the one driving a recovery in employment. It includes people paid under the table, doing odd jobs, working in the street, and others who like them do not pay taxes.

The informal sector reached 40 percent of the workforce, or nearly 35 million people, in the March-May quarter.

International

US panel backs Trump-themed coin amid controversy

The United States Department of the Treasury confirmed to AFP that the Commission of Fine Arts approved the design of a new collectible coin featuring Donald Trump, with members of the commission appointed by the current administration.

According to the proposal, the coin will feature an image of Trump standing with clenched fists over a desk on the obverse, while the reverse will display an eagle, a traditional symbol of the United States.

The sale price of the collectible has not yet been disclosed, although the United States Mint typically offers similar items for more than $1,000.

“There is no more iconic portrait for the front of these coins than that of our president Donald Trump,” U.S. Treasurer Brandon Beach said in a statement sent to AFP. He added that two additional coins — a $1 piece and a one-ounce gold coin — are also under consideration.

However, the Citizens Coinage Advisory Committee (CCAC), another body responsible for reviewing new coin proposals, declined to discuss the Trump design in late February.

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“Only nations governed by kings or dictators place the image of a sitting leader on their currency,” said Donald Scarinciat the time. “No country in the world has minted coins featuring a democratically elected leader during their term in office,” he added.

When contacted by AFP, the Treasury Department did not immediately respond to requests for further comment.

International

Fed’s Waller warns of rising inflation risks amid Middle East conflict

Christopher Waller, a governor at the Federal Reserve, said Friday that he is increasingly concerned about the inflationary impact of the ongoing conflict involving United States and Israel against Iran, particularly due to the prolonged closure of the Strait of Hormuz.

Waller, who had supported interest rate cuts over the past year amid concerns about the labor market, said he has shifted his stance in recent weeks due to rising inflation risks.

“Since the Strait of Hormuz was closed, it suggests this conflict could be much more prolonged and that oil prices will remain elevated for longer,” Waller said in an interview with CNBC.

“Therefore, this indicates that inflation is a greater concern than I had previously assessed,” he added.

Waller also backed the Federal Reserve’s decision earlier this week to keep interest rates unchanged, signaling a more cautious approach as global geopolitical tensions continue to affect economic outlooks.

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International

Brazil offers to mediate Colombia-Ecuador tensions, calls for restraint

The government of Brazil has offered to mediate in the ongoing tensions between Colombia and Ecuador, while calling on both nations to exercise restraint.

In a statement released Wednesday, Brazil’s Ministry of Foreign Affairs urged the parties involved to act with moderation and seek a peaceful resolution to the dispute.

“Brazil encourages all sides to act with moderation in order to find a peaceful solution to the controversy. It stands ready to support dialogue efforts aimed at preserving peace and security in the region,” the statement said.

Brazil also expressed “serious concern” over reports of deaths in the border area between Colombia and Ecuador, noting that the circumstances surrounding the incidents have not yet been clarified.

The diplomatic move comes amid rising tensions between the neighboring countries, increasing regional concern over stability and security along their shared border.