The global economy may be slowing down yet increased growth is expected for latin America and the Caribbean according to a recently released report. The U.N. Economic Commission for Latin America and Caribbean predicted that the region’s economy would expand by 4.7% this year; the sixth straight year of positive growth for the region. Peru (8.3 %), Panama (8.0%), and Uruguay (7.5%), will post the highest increases as the report also notes a steady decrease in regional unemployment since 2003.
Not all was good news in the study as some economic indicators are unfavorable in the region:
Still, inflation could average as much as 10 percent, led by rising food prices, which may push 15 million more people into poverty – leaving 190 million people in poverty, or 35 percent of the region's population, CEPAL said.
Widespread interest rate hikes could also boost local currencies, making exports less competitive and further slowing regional growth to 4 percent next year amid continued volatility in world financial markets, CEPAL warned.
In April, the World Bank issued its own report which predicted that Latin America’s economy would keep being strong and “better prepared for an economic slowdown in the United States.”
Image- Agencia Peruana de Noticias (Peruvian textile factory)
Sources- SignOnSanDiego.com, The Latin Americanist, MercoPress, Dominican Today
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