Latin America facing recession in 2015, warns UN panel
Latin America’s economies will contract by 0.3 percent this year as a weak global economy, falling commodity prices and China’s slowdown continue hammering emerging markets, a U.N. panel forecast Monday.
The slowdown will hit hardest in ailing regional powerhouse Brazil, which is facing a contraction of 2.8 percent, and in crisis- hit oil giant Venezuela, which is on track for a 6.7- percent contraction, predicted the Economic Commission for Latin America and the Caribbean (ECLAC).
The commission revised down its 2015 regional outlook from a July forecast of 0.5-percent growth, which was already on track to be the region’s slowest economic expansion in six years.
It forecast a return to growth of 0.7 per- cent in 2016.
A strong U.S. dollar and weak internal demand are also hurting Latin America’s economies, ECLAC said, urging policymakers to seek to kick- start investment.
“Energizing investment is a fundamental task to change the current deceleration phase as well as to achieve a path of sustained and sustainable growth in the long term,” it said in a statement.