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ILO: Green economy can create 24m jobs globally by 2030
If the right policies to promote a greener economy are put in place, 24 million new jobs will be created globally by 2030, a new International Labor Organization (ILO) report said.
The World Employment and Social Outlook 2018: Greening with Jobs said action to limit global warming to two degrees Celsius will result in sufficient job creation to more than offset job losses of six million elsewhere, Xinhuanet wrote.
“The findings of our report underline that jobs rely heavily on a healthy environment and the services that it provides,” ILO Deputy Director General Deborah Greenfield said at the launch.
Greenfield said the green economy can enable millions more people to overcome poverty and deliver improved livelihoods for this and for future generations.
At the regional level, there will be net job creation in the Americas of some three million, in Asia and the Pacific of around 14 million, and Europe of two million jobs, resulting from measures taken in the production and use of energy, said the ILO report.
Catherine Saget, the lead author of the report said at a press conference: “Policy changes in these regions could offset the anticipated job losses or their negative impact.
“Low — and some middle — income countries still need support to develop data collection and adopt and finance strategies towards a just transition to an environmentally sustainable economy and society that includes everyone from all groups of society.”
She noted that in Asia and Africa a large proportion of the workforce is in agriculture where environmentally friendly measures can be implemented.
To create the new jobs, policymakers will have to adopt sustainable practices in the energy sector, including changes in the energy mix, promoting the use of electric vehicles and improving the energy efficiency of buildings.
Tame Japan inflation to push back BoJ’s stimulus exit plans
Japan’s central bank is likely to wait longer than initially expected to exit its super-easy stimulus, a Reuters poll of economists showed with almost half predicting that it won’t happen until 2020 or later given sluggish inflation.
For years, the Bank of Japan has desperately tried to fan inflation to a target of two percent by heavy buying of bonds and other assets and, more recently, capping borrowing costs at around zero percent. But consumer inflation has remained stuck at about one percent, Reuters wrote.
Of 37 economists surveyed, 16 expect the BoJ will finally start to unwind that ultra-easy policy sometime next year, down from 18 in the April survey.
Sixteen said it will happen in 2020 or later, up from 12 analysts in last month’s survey. The remaining respondents projected either October or December this year.
“The pace of increases in consumer prices is more moderate than expected. It’s hard to see the BoJ exiting the current policy for a while,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.
Last month, the central bank ditched its timeframe to achieve that inflation target, a move analysts said is aimed at keeping market expectations for more stimulus in check.
Economists said policymakers and other experts will be watching to see if recent annual wage hikes in the two-three percent range translate into higher consumer spending, said Bjørn Tangaa Sillemann, analyst at Danske Bank.
China’s industrial output jumps but sales slump
China’s industrial output beat forecasts in April but retail sales slumped, official data showed on Tuesday, as the world’s second largest economy faces headwinds from its debt battle and US trade frictions.
Output at factories and workshops expanded 7.0 percent year-on-year, the National Bureau of Statistics (NBS) said, beating the 6.0 percent recorded in March and the 6.4 percent estimated in a Bloomberg News survey, according to AFP.
The jump in industrial activity was fueled by the easing of winter time pollution controls, said Julian Evans-Pritchard, an economist at Capital Economics.
It also reflected the first full month of data not affected by China’s New Year holidays in February, which disrupt production for months.
“But there are signs in the rest of today’s data that the economy is losing momentum,” Evans-Pritchard said in the note.
The retail sector — which China is counting on to propel it to consumption-fueled development — was one area that fell short of expectations with sales growth slowing to 9.4 percent from 10.1 percent in March.
The indicator fell below the 10 percent forecast by analysts, and reflected a broadly downward trend seen over the past 12 months.
Expansion in fixed-asset investment also sagged to seven percent on-year for the first four months, from the 7.5 percent recorded in January to March.
“Looking ahead, domestic spending is likely to continue to soften given the headwinds from slowing credit creation,” said Evans-Pritchard.
The data comes at a time of great uncertainty for China’s export machine as political machinations in Washington threaten shipments to one of its largest markets.
Moody’s warns of ‘structural weaknesses’ in Argentinean economy
Ratings agency Moody’s warned Argentina about the ‘structural weakness’ in its economy.
It also warned that the government’s measures to face the ‘financial turbulence’ in the past two weeks would be effective but would drag GDP growth down in 2018, Xinhua reported.
In a report, Moody’s said that “high inflation, a heavy reliance on investor flows and a small domestic financial and credit market” had exposed Argentina’s ‘significant structural weaknesses’.
Gabriel Torres, Moody’s vice president and senior credit officer for Argentina, wrote that “the peso’s weakening is credit negative in light of Argentina’s very high reliance on portfolio flows to fund both its fiscal and its external current account deficits”.
Torres said that the government’s response has included “sharp increases in interest rates, a reduction in 2018 public investment and the opening of discussions with the IMF for a flexible credit line”.
However, while he accepted that these “proactive actions seek to deter financial turbulence from affecting the real economy”, he predicted they would lead to
lower economic growth this year.
Moody’s said that peso’s depreciation began in late 2017 after the central bank announced it was relaxing its inflation targets.
“The peso began significantly depreciating late last year following the central bank’s easing of inflation targets. Investor outflows and portfolio rebalancing have resulted in a depreciation of 24 percent since the beginning of 2018,” said the statement.
After two weeks of currency volatility, the dollar reached its highest point against the peso on Friday, which traded at 23.73 for one dollar. On Monday, this shot up further to 25.1 for one dollar.
The Argentinean central bank has intervened in the market to halt the slide of the peso, including increasing its base interest rate to 40 percent.
Last Tuesday, Argentina’s Treasury Minister, Nicolas Dujovne, traveled to Washington to meet IMF chief Christine Lagarde and discuss the amount and conditions of a line of credit.
According to a statement from the treasury ministry, the line of credit would be of the ‘Stand by’ type, one of the IMF’s traditional modes of financing but which sees it involve itself in the economic policies of the country in question.
Analysts believe the IMF is likely to offer between $20 billion and $30 billion to Argentina, although Buenos Aires needs to account for a similar amount on Tuesday due to the expiration of treasury bonds.
The central bank is set to renew them, however, along with a rise in the interest rate of such bonds.
South Korea’s shipbuilding industry
South Korea’s shipbuilding industry is showing signs of recovery after years of struggling with the global downturn, a senior financial regulator said on Tuesday.
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