Down from previous estimate of 2.6%Wednesday, April 30, 2014
ECLAC sees Argentina growing 1%
Argentina’s economic growth projections for 2014 was shifted downward from 2.6 percent to one percent yesterday by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), with the institution’s outlook for the majority of Latin America also slumping since the last forecast in December.
ECLAC’s new, more conservative, perspective on Gross Domestic Product expansion this year was attributed to “various measures taken at the beginning of 2014 to address the imbalances that emerged in recent years, which had a contractionary impact.”
The economies of Latin America and the Caribbean will grow less this year than previously forecast, hurt by lower-than-expected dynamism in top economies Brazil and Mexico.
Stagnation also marked the outlook for the economy of Brazil, which was poised to grow 2.3 percent, identical to last year’s rate.
Venezuela’s forecast also declined from a one percent increase to a 0.5 percent decline.
The region is expected to post economic growth of 2.7 percent this year, slightly above 2013’s rate of 2.5 percent but well under the 3.2 percent expansion it forecast in December.
Despite overall regional deceleration, Argentina’s stagnation contrasts the horizon foreseen for neighbouring countries in 2014, however, with Bolivia expected to grow 5.5 percent, Paraguay, 4.5 percent, Chile, 3.7 percent and Uruguay, 3.5 percent.
Global market uncertainty will continue to weigh on the region, which depends heavily on exports of oil, metals and grains, the Santiago-based ECLAC said, also claiming that activity indicators for developed countries were improving.
Mexico, Latin America’s number-two economy, will enjoy growth of three percent.
Herald with Reuters