Economy on a steady rise in Latin America and Caribbean region ‘despite international turbulence’ – UN report

UNIC Mexico Mural inspired by the Sustainable Development Goals on the walls of Central de Abastos, the largest wholesale market in Latin America.

This article is brought to you in association with the United Nations.

Amid external uncertainty and volatility, the economies of Latin America and the Caribbean will grow by an average of 1.5 per cent this year, thanks to a rebound in private consumption and a slight increase in investment, according to a United Nations flagship report issued on Thursday.

“Our region continues to grow, although at a slower pace than what was projected several months ago, despite international turbulence, said Alicia Bárcena, Executive Secretary of the UN Economic Commission for Latin America and the Caribbean (ECLAC) during a press conference in Mexico City.

While she noted that this steady growth is “positive,” she noted that “it demands that we redouble our efforts to prompt a reactivation, without resorting to excessive fiscal adjustments.

“Regional integration can play an important role here, and we must aim in that direction,” she added.

The report, which covers a total of 30 countries, highlights great heterogeneity among the various economies and sub-regions: South America is expected to grow by 1.2 per cent in 2018, while Central America will notch 3.4 per cent growth and the Caribbean, 1.7 per cent.

Regarding countries, the Dominican Republic and Panama will lead the region’s growth, with increases in gross domestic product (GDP) of 5.4 per cent and 5.2 per cent respectively, followed by Paraguay, Bolivia, Antigua and Barbuda, Chile and Honduras, which range between 4.4 and 3.9 per cent.

The survey notes that this growth is occurring in the midst of a complex global scenario, including trade disputes between the United States, China and other nations; growing geopolitical risks; a decline in capital flows toward emerging markets in the last few months and a rise in sovereign risk levels; depreciations of local currencies against the US dollar; and a global economic expansion that is tending to lose momentum.

According to the findings, average inflation remains within expected values overall, the regional urban unemployment rate has stopped growing (forecast at 9.2 per cent), thanks to greater creation of salaried jobs. Measures aimed at fiscal consolidation in Latin America have brought about an expected reduction in the primary deficit, which is forecast to narrow from an average deficit of 0.8 per cent of GDP in 2017 to 0.5 per cent in 2018.

While the report shows that the region has increased its investment levels in the last two decades and closed the gap with other regions of the world, ECLAC warns that additional efforts are needed to promote the productive linkages of this investment and thereby bolster economic growth.

As, in 2017, private investment levels (80.3 per cent) surpassed those of public investment (19.7 per cent), the head of ECLAC stressed that “it is necessary to have a strategic vision regarding public investment, since it plays an important role in boosting private investment… as well as in the provision of central public goods to drive growth”.

“The region has made significant efforts to increase investment flows, but we face the challenge of improving its sectoral composition to incentivize our economies’ productivity. There is still much to be done,” Ms. Bárcena insisted.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Multilateralism’s ‘proven record of service’ is focus of first-ever International Day

MEPs demand an end to migrant deaths across the Mediterranean Sea

Take action on air pollution to save lives, and the planet, urges UN chief

Car clocking: MEPs call for new legislation to combat odometer fraud

A Sting Exclusive: “Consumer expectations for the 2015 UN summit on climate change”, Director General of BEUC Monique Goyens outlines from Brussels

Yemen blast kills 14 children, leaves others fighting for their lives in Sana’a

Environment Committee MEPs push for cleaner trucks and electric buses

Sudan: UN chief deplores excessive force used against pro-democracy protesters, calls on military and civilian leaders to ‘stay the course’ in negotiations

How blockchain is addressing key problem patterns in the financial services sector

European Parliament and Eurovision sign partnership for European Elections

Skills, not job titles, are the new metric for the labour market

The mental health of our society

Does Indonesia have the world’s most complicated elections?

Why the Greeks forgave Tsipras’ pirouettes around austerity and voted again for SYRIZA

Cholera surges, children in urgent need one month after Cyclone Idai slammed southern Africa – UNICEF

Half of the world’s population lack access to essential health services – are we doing enough?

The UK option: An overarching alternative for the whole Brexit options

A profitability roadmap for the fast-changing automotive sector

How companies can build resilience against pandemics

The EU will always have a stable partner in Montenegro, says President Đukanović

Some truths about the coronavirus, according to the World Health Organization

From Model T to EV: a short history of motor vehicle manufacturing

US life expectancy is falling – here’s why

Healing of ozone layer gives hope for climate action: UN report

More bank bailouts at taxpayers’ expenses

This study wants every child in the UK to spend a night under the stars

There is no recipe for a healthy mental state

New seat projections for the next European Parliament

Here’s how tech is revolutionising transport for low-income communities in urban Africa

‘Good enough’ global cooperation is key to our survival

Clean air is good for business

Tuesday’s Daily Brief: Guterres calls for restraint in Venezuela, Jazz Day, the importance of breastfeeding, and updates from Libya, Iran and Mozambique

#TwitterisblockedinTurkey and so is Erdogan

Yemen: Committee brings warring parties to the table in Hudaydah, builds on ceasefire

High internet taxes are restricting access and slowing economic growth

US resolution to condemn activities of Hamas voted down in General Assembly

Alarm over violent attacks on lawmakers, opposition in Malawi, ahead of elections

It’s Time to Disrupt Europe, Digital First

The next Google in biotech: will it be Chinese?

Chart of the day: These are the cities where the World Cup threatens productivity the most

Commission steps up fight against money laundering and terrorist financing

Post-Brexit muddled times: the resignation of UK’s top ambassador and Theresa May’s vague plans

5 ways to fast-track the transition to a carbon neutral world

MWC 2016: IoT experts fret over fragmentation

Sudan Partnership Conference: EU mobilises more support for Sudan’s transition

Yemen war: UN-backed talks to silence the guns due to begin in Stockholm

Parliament criticises Council’s rejection of money laundering blacklist

‘Well-being of two million’ in Gaza at stake as emergency fuel runs dry: UN humanitarian coordinator

1.1 billion people still lack electricity. This could be the solution

UN chief welcomes formation of unity government in Madagascar

UN health agency team in China to strengthen coronavirus response through partnership

A Sting Exclusive: EU Commission’s Vice President Šefčovič accentuates the importance of innovation to EU’s Energy Union

We’re all in the same boat on the SDGs. Here’s how we steer a course

Concerned over Haiti’s political crisis, Guterres promises ‘continuous commitment’

A UN-backed boost for women-run businesses in the developing world

Where EU air pollution is deadliest

Thai cave boys spared thundershowers, highlighting extreme climate disruption: UN weather agency

UN chief calls for ‘green and clean’ development in message for Africa Industrialization Day

Partnerships with civil society and youth ‘essential’ for a future that leaves no one behind: General Assembly President

EU plans to exploit the Mediterranean Sea and the wealth beneath it

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s