translated from Spanish: They estimate that the real wage would fall 6% in 2018

by direct effect of the devaluation, registered real wages will fall nearly 6% during the year and the prospect will continue throughout next year, according to a report by the consulting firm Ecolatina.

According to estimates by the consulting firm, if projections are met, formal real wages would be located 9% below the 2015 elections.

The study indicates that during the first half of the year, the real wage in the economy shrank on average 1% y/y measurement.

This dynamic is explained by the loss of 1% of registered private employees and 2.4% in the public sector workers.

“A contramano, unregistered workers – who showed the worst performance in the first six months of the year – obtained an improvement of 1% in the first half in real terms,” the report said.

The jump of 35% of the exchange rate in August will accelerate inflation in the remainder of the year, reinforcing the reopening of joint of workers claim to avoid revenues very behind against rising prices, warns Ecolatina.

Meanwhile, the hardening of the fiscal goal (which would come to the primary balance in 2019) and transfer several costs to provinces and municipalities limit significantly the margin for negotiation of public employees, indicates.

Economy wage Real purchasing power

Original source in Spanish