World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

Latin America’s Economic Outlook Dismal

Latin America’s Economic Outlook Dismal As Global Financial Crisis Takes Toll – UN

New York, Dec 19 2008 6:10PM

After six years of strong performance, Latin American and Caribbean economies will slow considerably next year as the global economic meltdown takes its toll on the region and unemployment rises, a United Nations agency for economic development announced today.

The gross domestic product (GDP) of the 33 Latin American and Caribbean countries will grow a projected 1.9 per cent in 2009, a marked drop from the 4.6 per cent rate a year earlier, according to preliminary figures from the UN Economic Commission for Latin America and the Caribbean (ECLAC).

Unemployment will increase to between 7.8 to 8.1 per cent next year, hitting low-income households and those headed by women the hardest and pushing many workers into the informal economy. However, inflation will slow to 6 per cent next year, from 8.5 per cent a year earlier.

“Today the region is better prepared than in previous occasions to handle a crisis, but in no case is it immune,” ECLAC said in a press release.

Developed and developing countries must coordinate macroeconomic steps and bolster intraregional trade and integration to manage the crisis, according to the UN commission. It also recommends that international agencies sufficiently finance counter-cyclical measures and that regional financial bodies inject liquidity into the global financial system.

Between 2003 and 2008, the region enjoyed healthy economic growth as employment expanded and poverty shrank, and most countries posted external and fiscal account surpluses.

But the international economic slowdown is already undoing those gains.

According to the report, foreign direct investment (FDI) will contract next year. Mexico and some Central American nations are already seeing exports slide. The drop in prices for fuel, metals, food and other basic goods will hinder trade prospects for the region, while the expected fall in tourism and remittances from migrant workers – both significant sources of revenue – will inhibit growth.

Scarce credit and the rising cost of external financing have caused a strong depreciation in local currencies in several countries, upsetting their balance sheets and thwarting efforts to slow inflation rates further, the Commission added.

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO: