Brasília – The economy of Latin America and the Caribbean should grow by a higher rate in 2014 than this year. The forecast was issued by the Economic Commission for Latin America and the Caribbean (Eclac), which is expecting growth of 3.2% in 2014 and 2.6% in 2013.
According to the Preliminary Overview of the Economies of Latin America and the Caribbean 2013, next year, regional growth will be spearheaded by Panama, at 7%, followed by Bolivia (5.5%), Peru (5.5%), Nicaragua (5%), the Dominican Republic (5%), Colombia, Haiti, Ecuador and Paraguay (at 4.5% each). The projected rate for Argentina and Brazil is 2.6%. Chile and Costa Rica are expected to grow by 4%; Guatemala, Mexico and Uruguay, 3.5%; and Venezuela, 1%.
To the Eclac, less dynamic external demand, increased international financial volatility, and reduced consumption have caused the more modest economic performance in 2013.
Next year, the Eclac sees a moderate improvement on the external front, which should help drive up external demand, and therefore boost exports from the region. “Private consumption will also continue to grow, although more slowly than in previous periods. In the meantime, increasing investment in the region remains a challenge,” according to the commission.
According to the report, the main challenge facing governments in Latin America and the Caribbean is to drive investment as a means to fostering productivity and growth with equality. To this end, the commission advises on social pacts, an institutional framework that provides certainties and clear-cut rules, short-term policies that enable nominal and actual stability, as well as long-term policies that increase investment in diversifying production in tradable goods.
*Translated by Gabriel Pomerancblum
