ECLAC is auspicious regarding the economy of the region and expects a good 2018

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ECLAC is auspicious regarding the economy of the region and expects a good 2018

CEPAL - ONU

CEPAL - ONU

According to the study and regional monitoring data of the organization: Economic Commission for Latin America and the Caribbean, ECLAC, Latin America would advance 2.2% in terms of GDP by 2018.

In a statement, ECLAC explains this due to the better conditions in commodity prices and the recovery of the Brazilian economy alongside Mexico, the largest economy in the region.

As commented by Alicia Bárcena, who is the President of ECLAC, the result of the region over the next year will grow due to the dynamism that presents Brazil and its economy. In addition, several countries that are growing at more moderate rates will have a noticeable acceleration of its economic activity.

Latin America, Caribbean countries

CEPAL includes Latin American and Caribbean countries

Also, according to the organization, a better ecosystem of consumption and domestic investment was added. According to data from the Brazilian statistical authorities, 2018 would be a healthy year in the macroeconomic aspect for the Brazil. The GDP of this economy would advance, according to the government agency of statistics by 2.0%. The forecast for 2017, after the political crisis and recession suffered in the last 24 months to 36 months, was 0.9% for real GDP.

The Fate of the Rest of the Region

In its report, the ECLAC stressed that the other Latin American giant, Mexico, will gain ground in 2018 by 2.4%. For the present 2017, it is projected that the Aztec economy closed the period with a 2.7% advance.

However, it will be Panama the one to register a 5.5% of GDP growth for 2018, being the regional economy that will have more dynamism in terms of aggregate income.

Argentina and Colombia, on the other hand, and according to ECLAC, it will grow 3.0% and 2.6% for 2018 respectively. Meanwhile, Peru and Chile will show advances in its real GDP by 3.5% and 2.8% each.

The official of ECLAC said the situation and the quarterly outlook for the region and the domestic demand will have a very important role for growth and the acceleration of the same for 2018, but it will have some differences with the components.

She also said that private consumption is still an engine of domestic demand, but that next year will have a higher contribution of investment, as well as the product of the recovery of the gross fixed capital formation. On the other hand, he stressed the need to promote public policies that are active to hold the expansive cycle in the economy.

According to this more optimistic habitat, the organization predicted that the rate of unemployment should yield in Latin America and converge towards a 9.2% in 2018. However, ECLAC said that the Venezuelan economy will drop 9.5% at the end of this year and would fall by 5.5% in 2018.

For the Anglo-Saxon Caribbean, an increase whose average is 1.5% for 2018 was considered, compared with almost zero expansion this year, due to the contribution of spending in reconstruction after the damage caused by hurricanes Irma and Maria in some countries, ECLAC said.

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