ECLAC sees Latin America GDP slowing down

(MENAFN- Brazil-Arab News Agency (ANBA)) Agência Brasil

Brasília - TheEconomic Commission for Latin America and the Caribbean (ECLAC) forecasts that most of the region's economies will lose steam. A study released this Wednesday (31) shows that weak investment, exports and domestic consumption will cause the region's Gross Domestic Product (GDP) to slow to 0.5% growth in 2019, down from 0.9% in 2018.

'This performance is attributed to the effects of a slowdown in synch with the global economy, which has meant an unfavorable international scenario for the region. Likewise, the low growth internally is due to the lack of momentum exhibited by investments, exports and a fall in public spending and private consumption,' the study reads.

According to ECLAC, unlike in previous years, the slowdown will be widespread in 2019, impacting 21 of the 33 Latin America and Caribbean countries. Average growth should be 0.2% in South America, 2.9% in Central America and 2.1% in the Caribbean.

Brazil's GDP is expected to grow by 0.8% 2019, down from 1.1% in 2018.

ECLAC argues that 'policy space needs to be expanded to tackle the slowdown and contribute to economic growth, with measures in the fiscal and monetary areas, as well as in investment and productivity.'

Translated by Gabriel Pomerancblum

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