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SANTIAGO, Oct. 12 (Xinhua) -- The Economic Commission of Latin America and the Caribbean (ECLAC) informed on Wednesday that it expects an average contraction of -0.9 percent in Latin America and the Caribbean during 2016.
The commission also indicated its statement that growth projections for economic activity could see an upturn in the economic dynamic in 2017, with an average increase of 1.5 percent.
ECLAC said it predicts 2017 to be more auspicious than in 2015 and 2016 because the prices of commodities will show improvements regarding average levels from 2016 and it is predicted that the growth in trade partners of this region will be greater.
ECLAC also indicated that, just like this year, during 2017, growth dynamics will show marked differences between countries and subregions.
South American economies, specialized in producing primary goods, particularly oil, minerals and food, will register an average growth in 2017 of 1.1 percent which contrasts with the predicted -2.2 percent in 2016.
In Central America, a growth rate of 4.0 percent is predicted for 2017, above the 3.7 percent predicted for 2016. If you take into account Central America and Mexico, the predictions are 2.5 percent for 2016 and 2.6 percent for 2017.
In the English and Dutch-speaking Caribbean, an average growth of 1.4 percent is estimated for 2017 and this figure positively contrasts with the -0.3 percent contraction predicted for 2016.
ECLAC assured that in order to sustain the largest expected growth in 2017, investment needs to be boosted and productivity needs to increase to keep track of the sustained growth. In this context, investment in infrastructure and technological innovation should play a primary role.
Countries in the region should ensure the sustainability of the region's public finances, with policies that take into account both the impact on the ability to grow in the long term as well as on the social conditions for the inhabitants of the region, according to ECLAC.
Faced with the current economic contraction, ECLAC highlights that the region needs a progressive structural change with a big environmental push, that promotes development based on environmental equality and sustainability, with public and private investment policies.
The ECLAC says these policies should be coordinated in different areas in order to re-define the energy, production and consumption patterns based on learning and innovation as this is how Latin America and the Caribbean will progress towards achieving the Sustainable Development Goals (SDGs) in the United Nations 2030 Agenda.
