SANTIAGO, Chile (CMC) – The Economic Commission for Latin America as well as the Caribbean (ECLAC) has revised down its growth projections for the area’s economical action, predicting a typical contraction of -0.6 per cent in 2016.
“The new projections evidence the challenging international scenario where low growth continues in developed nations, there exists an important deceleration in emerging economies (China in particular), rising unpredictability and costs in financial markets, and low prices for commodities — particularly hydrocarbons and minerals,” ECLAC said.
In addition, there’s greater weakness in internal demand in the area’s states, together with the decline in national investment accompanied by a deceleration of consumption,” it included.
As in 2015, during 2016, ECLAC said the increase dynamic shows marked differences between nations and subregions.
Meanwhile, the growth rate for Central American markets is forecast at 3.9 per cent, below the amount registered in 2015 (4.3 per cent).
“This new scenario for the markets of northern Latin America as well as the Caribbean reveals a poorer-than-anticipated recovery in America and demonstrates the effects official policy adjustments which were embraced in certain markets of the subregion the United Nations agency said.
Based on ECLAC, invigorating increase in today’s scenario and stopping this period of deceleration entails some challenges for the area’s markets.
On the one hand, ECLAC said it’s necessary to stimulate investment and increase productivity to restart a course of sustainable and sustained growth in the future.
Moreover, it said attempts ought to be designed prevent rollbacks and to safeguard the societal gains realized recently.
In this context, ECLAC said states need policies that sustain productive and social investment in the framework of fiscal adjustments that were intelligent.
ECLAC said it’s essential to achieve sustainability in the area’s public finances, with policies which take into consideration the impact on the societal states of the area’s inhabitants, in addition to increase ability in the future.