Peru is going to be second fastest growing economy in South America at 3.8% this year, which surpasses the December 2015 growth rate estimate of 3.4%, the Economic Commission for Latin America and the Caribbean (ECLAC) projected.
The United Nations organization released on Friday the new growth projections for the region’s economic activity, and Bolivia is perceived as the country that will see the greatest expansin with 4.5%. It also forecasts that Colombia’s GDP will grow 2.9%, followed by Paraguay (2.8%), Chile (1.6%) and Uruguay (0.5%).
The countries whose economic activity is expected to contract include Ecuador (-0.1%), Argentina (-0.8%), Brazil (-3.5%) and Venezuela (-6.9%).
ECLAC has revised downward its growth projections for the region’s economic activity, forecasting an average contraction of -0.6% in Latin America and the Caribbean in 2016.
This new estimate reflects that the contraction experienced by regional Gross Domestic Product (GDP) in 2015 (-0.5%) will extend to the current year.
The new projections evidence the difficult global scenario in which low growth continues in developed countries, there is a significant deceleration in emerging economies (China in particular), increasing volatility and costs in financial markets, and low prices for commodities— especially hydrocarbons and minerals.
In addition, there is greater weakness in internal demand in the region’s countries, with the decline in domestic investment accompanied by a deceleration of consumption.
As in 2015, during 2016 the growth dynamic shows marked differences between countries and subregions, ECLAC says.
The economies of South America—which are specialized in the production of commodities, especially oil and minerals, and have a growing degree of trade integration with China—will record a contraction of -1.9%.
(END) DOP/JCC/RMB
Published: 4/9/2016