Brasília – The countries in Latin America and the Caribbean should grow by an average of 2.7% in 2014, according to forecasts from the Economic Commission for Latin America and the Caribbean (Eclac). According to the commission, the expectation is a result of moderate dynamism across the main economies in the region.
The Eclac believes the regional growth rate in 2014 will be slightly higher than in 2013 (2.5%) and lower to December forecasts (3.2%), due to a scenario of uncertainty and lower-than-expected growth in the region’s leading economies, Brazil and Mexico, which are set to grow by 2.3% and 3%, respectively.
The economic growth projection for Argentina has been revised down to 1%; in early 2014, the country implemented several measures to fight off imbalances which have arisen over the past few years. According to the commission, Venezuela’s complex economic scenario will imply a 5% decline in activity in that country.
As per the Eclac report, activity indexes in developed countries are picking up, although there is caution regarding the situation in China, one of the premier trade partners with the region, which has set a 7% minimum growth target for this year.
The demand for commodities, especially ores and foodstuffs, is expected to remain moderate. Coupled with the rising prices of the currencies of developed countries, this should lead to a mild decline in prices. The decline may affect ore- and foodstuff-exporting countries, such as those in South America.
*Translated by Gabriel Pomerancblum