BASSETERRE, St. Kitts, Aug. 27.2018 – THE Economic Commission for Latin America and the Caribbean has projected that the region will see an economic growth rate of 1.5% for 2018.
That projection followed the release of the Economic Survey for Latin America and the Caribbean 2018.
The details of the survey, which were released by ELAC officials at a press conference in Trinidad and Tobago recently, revealed that despite international context marked by uncertainty and volatility, the economies of Latin America and the Caribbean will grow at an average of 1.5% in 2018.
The growth, it was noted, was due in large part to the rebound in domestic demands, private consumption especially, and a slight increase in investment.
In a statement, ECLAC officials said that based on the survey document, the overall average growth in the region saw a projected decline of seven-tenths versus the last estimate provided by the organization in April.
“As on previous occasions, there is great heterogeneity among the various countries and subregions, since South America is expected to grow 1.2% in 2018, while Central America will notch 3.4% growth and the Caribbean 1.7%. With regard to countries, the Dominican Republic and Panama will lead the region’s growth, with increases in Gross Domestic Product (GDP) of 5.4% and 5.2%, respectively, followed by Paraguay (4.4%), Bolivia (4.3%), Antigua and Barbuda (4.2%), and Chile and Honduras (both with 3.9%).
The Economic Survey highlighted that regional growth is occurring during a global scenario, that is characterized by trade disputes between the United States, China and other nations; growing geopolitical risks; declining in capital flows toward emerging markets and a rise in sovereign risk levels.
Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, explained: “Our region continues to grow, although at a slower pace than what was projected several months ago, despite international turbulence. That is positive, but it demands that we redouble our efforts to prompt a reactivation, without resorting to excessive fiscal adjustments.”
She believes that regional integration can play an important role, urging nations to focus in that direction.