Latin American recovery will prove elusive in 2016
Wednesday, December 30, 2015
Subject
Declining regional growth projections.
Significance
According to a report issued on December 17 by the UN Economic Commission for Latin America and the Caribbean (ECLAC), the region's GDP contracted by 0.4% this year, slowing for a fifth consecutive year, and will grow by a mere 0.2% in 2016.
Impacts
- Brazil's forecast 2.0% contraction next year partly reflects, and will contribute to, the country's political crisis.
- ECLAC's 0.8% growth forecast for Argentina depends on the new government's success in reactivating investment.
- If private consumption and investment continue to contract, the region's labour markets will weaken again next year.
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