Oil prices threaten Latin America’s middle class

World Today

An end to an oil boom in Latin America hints of hard times for the region, and now United Nations officials have flashed a red alert for Latin America’s middle class. CCTV Correspondent Michelle Begue filed this report.

Oil prices threaten Latin America's middle class

Oil prices threaten Latin America's middle class

An end to an oil boom in Latin America threatens hard times for the region. And now United Nations officials have flashed a red alert for Latin America's middle class. CCTV Correspondent, Michelle Begue filed this report.

Highlights:

  • While Colombia’s economy isn’t the hardest hit by the crash in oil prices, it has greatly affected the Colombian peso which is at a five year low against the dollar. Analysts say if unemployment isn’t the problem then families could still feel a hit in their purchasing power.
  • The 2014 Human Development Report by the United Nations Development Program warns that Latin America’s middle class, earning $10 to $50 a day, is more vulnerable than ever.
  • Thirty-seven percent of this population is in jeopardy of falling back into poverty as soon as a major crisis hits.