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SANTIAGO, Dec. 14 (Xinhua) -- Latin America will see more "subdued growth" in 2017, the Economic Commission for Latin America and the Caribbean (ECLAC) based here said on Wednesday.
ECLAC's latest economic growth forecast shows the region will "experience modest growth of 1.3 percent in 2017" after two consecutive years of economic contraction.
To counter this lackluster performance, the agency calls for "revived public-private investment to resume short- and long-term growth and confront the risks and growing uncertainties posed by the international scenario."
"We are at a turning point. Latin America and the Caribbean will resume growth but moderately and without clear engines driving it. Its recovery will be fragile as long as the uncertainties of the economic context continue, particularly the recently observed protectionist trends," ECLAC Executive Secretary Alicia Barcena said at a press conference presenting the agency's report.
The report, titled "Preliminary Overview of the Economies of Latin America and the Caribbean 2016," shows the region will close 2016 with an average contraction of 1.1 percent.
"South America will be the sub-region most affected, with a decline of2.4 percent, while the Caribbean will contract by 1.7 percent and Central America will have positive growth of 3.6 percent," says ECLAC.
Urban unemployment in Latin America is rising and could end at 9 percent, "much higher than the 7.4 percent recorded in 2015," the report notes.
Inflation varies, with South America registering 10.9 percent in September 2016, up from 9.2 percent for the same month last year, while accumulated inflation over 12 months for the economies of Central America and Mexico as a group rose from 2.5 percent in September 2015 to 3.4 percent in September 2016.
South America is forecast to resume growth with a GDP increase of 0.9 percent, while the Caribbean is expected to grow by 1.3 percent, mainly due to tourism, and Central America is forecast to expand by 3.7 percent.
"Greater external demand will benefit the region in general in 2017, in addition to a recovery of intra-regional trade due to improved performance by the southern economies. Nevertheless, the uncertainties of the international context will have differentiated effects on the individual countries and sub-regions of Latin America and the Caribbean," the report says.
