Economy in Caribbean region projected to contract this fiscal year – ECLAC

The United Nations’ Economic Commission for Latin America and the Caribbean (ELAC) in a report has forecast economic contraction for the region this year.
ECLAC said that economic activity in the region will contract -0.8 percent this year, marking a steeper decline than in 2015 when the decline was -0.5 percent.

ECLAC said there is an urgent need to mobilize investment – both public and private – to promote the region’s economic recovery and meet the challenges imposed by the 2030 Agenda for Sustainable Development.

The Caribbean region, will suffer a -0.3 percent contraction in its Gross Domestic Product (GDP), while Central America will grow 3.8 percent – the boost coming from its improved terms of trade, resulting from lower hydrocarbons prices; the recovery of its external and domestic demand; and increased income from remittances.

According to the report, 6 countries are expected to show an economic contraction in 2016, namely Argentina (-1.5 percent), Brazil (-3.5 per cent), Ecuador (-2.5 percent), Suriname (-4.0 percent), Trinidad & Tobago (-2.5 percent) and Venezuela (-8.0 percent).

On the other hand, ECLAC said regional growth will be led by Bolivia (4.5 percent), Costa Rica (4.3 percent), the Dominican Republic (6.0 percent), Nicaragua (4.5 percent), and Panama (5.9 percent).

The report points to deteriorated prices for the region’s commodities exports and greater international financial uncertainty and volatility, “which have increased since the United Kingdom voted to leave the European Union, the so-called Brexit.”
“This decision has also produced greater risks to the world’s future growth,” ECLAC added. -(CMC)