Oct 2016 Financial News

Eclac forecasts growth for region in 2017

Oct 13, 2016

The Economic Commission for Latin America and the Caribbean (Eclac) has revised its economic growth projections for the region for 2016 and now expects an average contraction of -0.9 per cent for Latin America and the Caribbean this year. Economic activity is expected to pick up in 2017 with average growth of 1.5 per cent, according to a press release by the United Nations agency yesterday.

The projections for 2017 reflect expectations of more auspicious global conditions than in 2015 and 2016. Prices for commodities in 2017 will show gains over average-2016 levels and growth is expected to be stronger in the economies of the region’s trading partners.

As in 2016, growth in 2017 will show marked differences between countries and subregions, Eclac reports. In the English- and Dutch-speaking Caribbean, average growth is estimated at 1.4 per cent for 2017, contrasting positively with the contraction of -0.3 per cent expected for this year.

The economies of South America, which specialize in primary goods—particularly oil, minerals and foods·will post average growth of 1.1 per cent in 2017, contrasting with a contraction estimated at -2.2 per cent in 2016.

The economies of Central America are expected to register growth of 4.0 per cent in 2017, above the 3.7 per cent, projected for 2016. For Central America plus Mexico, the projections are 2.5 per cent for 2016 and 2.6 per cent for 2017. 

According to Eclac, stronger investment and better productivity are needed in order to maintain a sustained growth path and support the higher growth rates projected for 2017. Here, investment in infrastructure and technological innovation must play a key role.  

In view of the current economic downturn, Eclac again affirms that the region needs a progressive structural change with an environmental big push to drive development based on equality and environmental sustainability. Public and private investment policies need to be co-ordinated across different areas to reshape patterns of production, consumption and energy, based on learning and innovation. 

Source:
Trinidad Guardian
Thursday October 13, 2016

http://www.guardian.co.tt/business/2016-10-13/eclac-forecasts-growth-region-2017