Plummeting economies in Venezuela and Brazil are expected to drag Latin America into negative growth again this year, the U.N.’s Economic Commission for Latin America and the Caribbean reported Tuesday July 26.
For its part, Mexico is projected to grow by 2.3 percent.
The commission projected a 0.8 percent slide in the region’s overall gross domestic product for 2016 , a bit worse than last year’s 0.5 percent dip.
The U.N. agency said global growth remains slow, with low prices for Latin American commodities and financial uncertainty fed in part by the United Kingdom’s vote to leave the European Union.
The worst performers are expected to include troubled Venezuela, with an 8 percent contraction, and Brazil, down 3.5 percent. The commission forecast a decline of 2.5 percent for Ecuador and Trinidad and Tobago and a 1.5 percent dip in Argentina. It said South American economies overall will likely shrink by 2.1 percent due to reduced internal and global demand for their products and deteriorating terms of trade: costlier imports and cheaper exports.
Low fuel prices, however, are helping Central America, which is expected to see 3.8 percent growth, partly due to growing internal demand and increased remittances from abroad.
The Caribbean is projected to experience a 0.3 percent slip.
The region’s best performers are expected to be the Dominican Republic with 6 percent growth and Panama, rising by 5.9 percent. Nicaragua and Bolivia are forecast to grow by 4.5 percent and Costa Rica by 4.3 percent. All were at the top of last year’s growth statistics as well.
Mexico is projected to grow by 2.3 percent and Colombia by 2.7 percent.
The overall slide across the region is likely to mean greater urban unemployment, which could rise to 8.1 percent this year from 7.4 percent in 2015.
The commission’s executive secretary, Alicia Barcena, said that to accelerate economic growth, countries need to adopt policies that support investment and increase productivity. The commission also urged steps to reduce tax evasion.
more recommended stories
Climate change improves production of habanero pepper in Yucatán
“Facing the climate change that prevails.
Google suspends business with Huawei after Trump blacklist
Alphabet Inc’s Google has suspended business.
On World Bee Day, actions are needed to Save the Bees
The United Nations designated May 20.
Morehouse College grads are surprised by a billionaire’s promise
Atlanta, GA (CNN) – Morehouse College.
Father of slain pregnant teen blames ‘anti-immigrant laws’ for delay in investigation
The father of a pregnant teenager found.
Trump ‘engaged in impeachable conduct’… GOP Rep. Justin Amash.
Justin Amash is the first GOP.
Los Cabos, Mexico from a tourist point of view (VIDEO)
Laurel and Brandon went on vacation.
Quintana Roo beaches threatened by smelly seaweed invasion
MEXICO CITY (AP) — Tourists looking.
Tensions with China help U.S. see importance of North American trade (Jesus Seade)
MEXICO CITY (Reuters) – Tense U.S.-China.
Finally, the U.S. lifts tariffs on Canadian, Mexican metals
WASHINGTON/OTTAWA (Reuters) – The United States.