Eclac sees regional growth of 0.1% in Latin America and the Caribbean in 2019

Slowdown in domestic demand and lower external aggregate demand, accompanied by weaker financial markets on the international stage, are factors that weighed on the pace of economic activity in Latin America and the Caribbean in 2019, the Commission points out Economic for Latin America and the Caribbean (ECLAC) in its Preliminary Balance of Economies of the region, released on Thursday (12). The region's aggregate economic performance is expected to be virtually stable this year, with a slight increase of 0.1% on average, while eclac's 2020 estimate is 1.3% growth. "Consequently, the period 2014-2020 will be the lowest growth for the economies of Latin America and the Caribbean in the last seven decades," commission economists say. Of the 33 economies assessed by the Commission, 23 are expected to slow economic growth in 2019, 18 out of 20 in Latin America. In all, 14 countries in the region will have economic expansion of less than 1.0% this year, the entity estimates. The last few years, ECLAC points out, marked an important slowdown in economic activity, with falling GDP per capita (down4.0% between 2014 and 2019), consumption and investment, as well as falling exports and worse working market conditions in the labour market in observed region. "Given this scenario, the region does not support adjustment policies and requires policies to stimulate growth and reduce inequality. Current conditions need fiscal policy to focus on resuming growth and responding to growing social demands," ECLAC Executive Secretary Alicia Bárcena said in the presentation of the study. One of the main obstacles to the development of the region is tax evasion, which reaches 6.3% of regional GDP. For 2020, ECLAC expects Caribbean countries to lead economic growth in the region at a subregional rate of 5.6%. "At the bottom, Venezuela, Nicaragua and Argentina will moderate their rates of economic contraction, with falls of 14%, 1.4% and 1.3%, respectively. Meanwhile, Central America will expand 2.6% and South America 1.2%," the entity said.