En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Venezuela the most miserable country-Bloomberg


These countries are getting more miserable this year. Venezuela tops the list once again.

WASHINGTON
Petroleumworld.com 03 03 2017

If 2016 was the year of political shocks, this year could be when we find how they'll impact the global economy. Bloomberg's Misery Index, which combines countries' 2017 inflation and unemployment outlooks, aims to show us just that.

For the third year in a row, Venezuela's economic and political problems make it the most miserable in the ranking. The least miserable country is once again Thailand in large part due to its unique way of calculating employment and the rest of the ladder features noteworthy moves by the U.K., Poland and Mexico, to name a few. 

Economic woes have plagued Venezuela for years. Sluggish oil prices, the country's only significant export, have fueled a crisis that has left grocery store shelves empty, hospitals without basic medication and violent crime rampant as desperation leads to anger. While the country has not reported economic data since 2015, Bloomberg's Cafe Con Leche Index , which aims to track inflation via the cost of a cup of coffee, shows a price surge of 1,419 percent since mid-August. Economists estimate that prices will rise almost six-fold this year, according to the median estimate in a Bloomberg survey.

A turn for the worse

Moving closer to Venezuela territory  though no country even comes close to its score of nearly 500  are a handful of central and eastern European countries.

Poland, which experienced the biggest negative move in the rankings, clocks in at No. 28 among this year's 65 economies, from a rank of 45 in last year's index of actual performance. The higher the ranking, the more miserable the economy. Though it's seen a steady decline in its unemployment rate since the financial crisis, inflation  rose to 1.8 percent in January after Poland's longest period of deflation on record. Similar price increases in Romania, Estonia, Latvia and Slovakia drove large jumps in the countries' Misery Index rankings. 

The misery also has deepened in Mexico, according to the index. After finishing 2016 at No. 38, it's slated to rise to 31st place as inflation balloons to a forecast of 5 percent in 2017 from an average 2.8 percent last year. A combination of the end of government fuel subsidies and the peso 's 11 percent decline against the dollar since the U.S. presidential election in November is pressuring prices. 

The U.K.'s move by two notches toward more misery comes on the heels of the Brexit vote. The popular referendum that cemented the start of the country's move out of the European Union has driven the pound to a more than 30-year low, pushing up the cost of imports and, along with it, inflation. Price growth has been sluggish in the U.K. since oil prices fell at the end of 2014.

Looking Up

Making strides to become less miserable is a diverse cast of characters: Norway, Peru and even China.

Norway's economic woes could at least lower prices for consumers this year, allowing the country some room to improve on last year's mediocre performance and become less miserable by 18 spots. Economists see oil spending slipping in 2017 while unemployment holds at around 4.8 percent  the latter perhaps a credit to the government's spending spree. 

Peru also is poised to impress with a noteworthy 13-position move toward a happier economy this year. Again, this is good news for bad reasons: Peru was more miserable than expected in 2016 as a drought sparked food-price inflation and weak domestic demand weighed on the labor market. Economists appear to agree with Peru's central bank, which sees improvement in investment and trade on the horizon.

Rounding out the most-improved in the rankings this year should be Hong Kong, Taiwan, the Netherlands, China, Ecuador and Russia  each set to move down nine spots or more. A rosier outlook in China, the world's second-biggest economy, is a boon for global prospects.

For full rankings, please see the table. Bloomberg's misery index comprises 65 countries and is calculated by adding together the forecasts for a country's rate of inflation and unemployment. A higher score indicates more 'misery.'




Story by Catarina Saraiva and Michelle Jamrisko; With assistance from Andre Tartar, Cynthia Li, Sarina Yoo and Harumi Ichikura from Bloomberg News.

We invite all our readers to share with us
their views and comments about this article
.


Write to editor@petroleumworld.com


By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.