Latin Amer­ica fac­ing re­ces­sion in 2015, warns UN panel

The China Post - - BUSINESS INDEX & -

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.

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