Latin American economy could fall 0.8%

26 de julho de 2016

São Paulo – Latin America and the Caribbean are expected to register a 0.8% decline in their economy this year, according to a forecast done by the Economic Commission for Latin America and the Caribbean (ECLAC) released this Tuesday (26). The previous forecast, done in April, pointed to a 0.6% fall. The decline is shaping to be sharper than last year’s, which stood at 0.5%. The Brazilian economy should fall by 3.5%.

A report by the commission portrays heterogeneous performances among the countries and sub-regions. The steepest fall should happen in South America, with a fall of 2.1% in 2016. ECLAC lists as main factors the deterioration of trade, the lower external demand and the slowdown of domestic consumption. Central America’s countries are expected to register and average growth of 2.6%.

*Translated by Sérgio Kakitani