Latin America slows down: ends 2020 with slowest growth in forty years
La Comisión Económica para América Latina y el Caribe (Cepal), estimates that the region will grow only by 0.1% on average this year.
Latin America also slows down. La Comisión Económica para América Latina y el Caribe (Cepal) estimates that the region will grow only by 0.1% on average during this year, the period of slowest growth in forty years.
In the Balance Preliminar de las Economías de América Latina y el Caribe 2019, the organization reveals that the economies of the region will register an advance of 1.3% in 2020. “The lower dynamism of domestic demand has been accompanied by a decline aggregate external demand and more fragile international financial markets,” stated the organization.
Also, Cepal highlights that the political turbulence that regions such as Chile and Bolivia have suffered has not contributed to improving the situation. “To this scenario are added the growing social demands and pressures to reduce inequality and increase social inclusion that have detonated with unusual intensity in some countries.”
Cepal reveals that by 2020 Latin American economies will grow 1.3%
The United Nations (UN) emphasizes that the global economic environment will not help because of its “low dynamism and its growing vulnerability.” However, Cepal explains that, unlike previous times, “most countries in the region today have historically low levels of inflation and relatively high international reserves.”
In addition, the organization points out that “economies continue to have access to financial markets and international interest rates are at historically low levels.” According to Cepal experts, these factors favor the ability to implement macroeconomic policies to stimulate demand.
The price of raw materials, which in 2019 fell by 5%, exports, or risks in labor issues are some of the main problems that the economies of the region will have to faceduring the next year, according to Cepal.
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