On Wednesday, May 21st, the UN has revised its growth forecasts for Latin America and the Caribbean downward, mainly due to the economy slowdown in developing countries such as Brazil, Argentina and Venezuela. In general, the Central America the rate was established at the level of 3.3%. For the economies such as Mexico, Central America, Caribbean and South American countries such as Bolivia, Colombia and Peru, on the contrary the growth will accelerate, according to experts in the Department of Economic and Social Affairs (DESA). Experts expect that the gross domestic product (GDP) of Latin America and the Caribbean will grow by 2.6%.
In 2013, the entire Latin American region grew by 2.7% according to the UN. Forecast for current year show the fact that the economies will move in different directions. Thus, while the United Nations estimates that the economy of Mexico and Central American counties will increase by 3.3%, in the rest of South America may occur the opposite trend.
Now the largest economies face serious difficulties. In particular, Brazil, Argentina and Venezuela are suffering from many external and internal factors. Among them, the decline in global demand for raw materials and dependence on external financing and, as a consequence, the lack of capital.
Argentina experiences visible decline, businesses are withdrawing and there is an inflation pressure, while it is also likely that Venezuela falls into recession.
On the positive side, the UN noted that there are other countries, such as Bolivia, Colombia and Peru show "a strong upward trend. Also noticeable growth is seen in the Caribbean region." UN emphasizes the need for reforms to boost investment and productivity for the whole of Latin America. As for inflation, is expected to all countries remain generally stable, with the exception of Argentina and Venezuela. Panama continues to be one of the leading and fastest growing countries in the region and throughout Latin America.
