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.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

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

On Youth Participation: Are we active citizens?

Corporate tax remains a key revenue source, despite falling rates worldwide

JADE President opens JADE Spring Meeting 2014

Venezuela: ‘A worrying destabilizing factor in the region’, Bachelet tells Human Rights Council

Mental health and suicide prevention: why focus on primary care

Restoring government control across Central African Republic is ‘key’ to lasting peace, stability – UN envoy

Don’t take African generosity towards refugees for granted, says UN refugee chief

UN agencies call for more resettlement and end to detention of asylum seekers in Libya

EU-Russia summit in the shadows of Kiev’s fumes

Make no mistake: the purpose of business is to serve society

Brexiteer May gets lip-service from Trump and Turkish promises from Erdogan

A digital tax sounds like a great idea. Here’s why it might not be universally popular

UN report on Syria conflict highlights inhumane detention of women and children

Ukraine: The West and Russia negotiate shares of influence

EU Parliament: It takes real banks to fight unemployment and recession

Service and Sacrifice: Guinean peacekeepers make their mark in Mali

China and China-EU Relations in the New Era

ITU Telecom World 2018 takes place in Durban, South Africa

The US-Mexico trade deal a threat for others, Trump to single out China, Europe

Greferendum: the biggest political gaffe in western modern history to tear Europe apart? #Grexit #Graccident

UN Security Council offers Yemen Special Envoy ‘their full support’

MWC 2016 LIVE: EC adds Brazil to partner tally

Road safety: Data show improvements in 2018 but further concrete and swift actions are needed

The Sting’s Values

China in my eyes

Service and Sacrifice: Ugandan ‘Blue Helmets’ support UN efforts to bring peace to Somalia

Bundesbank’s President Weidmann criticises France and the EU. Credibility at risk?

Why women aren’t allowed to work

The 100-year climate catastrophe of Mont Blanc

Economic sentiment and business climate stagnate in miserable euro area

‘Stand united against anti-Muslim hatred’ urges Guterres, after mosque shootings in New Zealand leave 49 dead

Prisons are failing. It’s time to find an alternative

Still recovering from devastating cyclones, Mozambique, in UN address, warns of global warming’s ‘nefarious consequences’

5 things to know about the Western Balkans

Commission presents EU-Vietnam trade and investment agreements for signature and conclusion

What keeps me up at night? Two strategists reply

Collaboration and connectivity at ITU Telecom World 2019

Hungary: people born in the 2020s won’t have legal rights any more to buy tobacco

UN highlights profound implication of population trends on sustainable development

The mental health of health professionals: is it worth it?

The world just took a step closer to eradicating polio

Global Citizen – Volunteer Internships

A few, or rather two, trade and economic alliances may rule our brave new world

Upgraded EU visa information database to increase security at external borders

MEPs want to ensure sufficient funding for Connecting Europe’s future

Privatisation and public health: a question of Human Rights

Why a healthy planet and a healthy economy go hand-in-hand

“If the job market doesn’t exist, then even the most brilliant Youth Guarantee cannot ensure a job to these young people”, European Youth Forum Secretary General Giuseppe Porcaro on another Sting Exclusive

The future of suicide and depression prevention

These countries have some of the highest voter turnout in the world

On World Day to Combat Desertification, UN shines spotlight on ‘true value’ of land

To beat hunger and combat climate change, world must ‘scale-up’ soil health – UN

UN chief laments ending of Cold War-era disarmament treaty

10 reasons why today’s cyber leaders are tomorrow’s world leaders

The world to teach Germans to…un-German

Europe’s richest regions actively seek investment from China’s biggest banks

How distorted is the EU labour market by this crisis?

Boris to end up in jail if he loses the next elections?

‘€1 million’ fines for rescue boats prompts UN concern for future sea operations

Why artificial intelligence is learning emotional intelligence

More Stings?

Speak your Mind Here

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

WordPress.com Logo

You are commenting using your WordPress.com 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