Drop in expat workers may hit Kuwait’s economy hard, says National Assembly committee

Authorities have not yet set a quota for the proposal, but one of the seven proposals submitted by members of parliament called to set a percentage for each migrant community in the country. (File/AFP)
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Updated 17 August 2020

Drop in expat workers may hit Kuwait’s economy hard, says National Assembly committee

  • The committee has been studying several plans submitted by members of parliament and the government to lower the number of expats in the country

DUBAI: A sudden drop in the number of expats living in Kuwait may have negative impacts on the country’s economy, the National Assembly’s human resources committee said.

The reduction will diminish the market’s purchasing power, affect the real estate and private educations markets, and hit hard the labor market, as the private sector highly depends on expat employees, local daily Kuwait Times reported on Sunday.

The committee has been studying several plans submitted by members of parliament and the government to lower the number of expats in the country.

Authorities have not yet set a quota for the proposal, but one of the seven proposals submitted by members of parliament called to set a percentage for each migrant community in the country.

The Kuwaiti government’s plan also callto replace about 160,000 expats working in the public sector with nationals, but did not provide a timeframe.

The proposal also suggests that about 370,000 expats who show a “negative impact” on the country or are illegal residents can be dismissed by taking short-term measures.


Japan’s capital sees prices fall most in over 8 years as COVID-19 pain persists

Updated 24 min 48 sec ago

Japan’s capital sees prices fall most in over 8 years as COVID-19 pain persists

  • Tokyo core CPI marks biggest annual drop since May 2012
  • Data suggests nationwide consumer prices to stay weak
* Nov Tokyo core CPI -0.7% yr/yr, matches forecast
* Tokyo core CPI marks biggest annual drop since May 2012
* Data suggests nationwide consumer prices to stay weak (Adds analyst quote, background)
By Leika Kihara
TOKYO, Nov 27 : Core consumer prices in Tokyo suffered their biggest annual drop in more than eight years, data showed on Friday, an indication the hit to consumption from the coronavirus crisis continued to heap deflationary pressure on the economy.
The data, which is considered a leading indicator of nationwide price trends, reinforces market expectations that inflation will remain distant from the Bank of Japan’s 2% target for the foreseeable future.
“Consumer prices will continue to hover on a weak note as any economic recovery will be moderate,” said Dai-ichi Life Research Institute, which expects nationwide core consumer prices to fall 0.5% in the fiscal year ending March 2021.
The core consumer price index (CPI) for Japan’s capital, which includes oil products but excludes fresh food prices, fell 0.7% in November from a year earlier, government data showed, matching a median market forecast.
It followed a 0.5% drop in October and marked the biggest annual drop since May 2012, underscoring the challenge policymakers face in battling headwinds to growth from COVID-19.
The slump in fuel costs and the impact of a government campaign offering discounts to domestic travel weighed on Tokyo consumer prices, the data showed.
Japan’s economy expanded in July-September from a record post-war slump in the second quarter, when lockdown measures to prevent the spread of the virus cooled consumption and paralyzed business activity.
Analysts, however, expect any recovery to be modest with a resurgence in global and domestic infections clouding the outlook, keeping pressure on policymakers to maintain or even ramp up stimulus.