BUENOS AIRES: Latin America is expected to register anemic 0.5 percent growth in 2015, down from a prior estimate of 1.0 percent, the United Nations’ regional arm said today, as China decelerates and investment falls.
The economy of regional powerhouse Brazil will likely contract 1.5 percent, while Mexico is seen growing 2.4 percent, the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) said.
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Declining investment was worrying, as its effects could have an impact beyond the current economic cycle, ECLAC said.
“Redynamizing growth in the short and long term requires encouraging public and private investment in complex times,” said ECLAC head Alicia Barcena, suggesting that Latin American countries look at tools such as fiscal rules to protect investment and seek new sources of financing.
ECLAC estimates that the region’s No. 3 economy, Argentina, will grow 0.7 percent in 2015, while oil exporter Venezuela is likely to be the worst performer, with 5.5 percent contraction forecast
