Latin American Economic Growth Could Approach Five Percent This Year

Latin American Economic Growth Could Approach Five Percent This Year
(World Trade Interactive)

According to a recent report by the Economic Commission for Latin America and the Caribbean (CEPAL), economic growth in Latin America is expected to slow to 4.7% in 2008 from 5.7% in 2007. Individual country forecasts range from 2.7% for Mexico to 8% for Panama. Peru and Argentina will show significant progress, with gross domestic product increases of 7%, followed by Uruguay at 6.5%, Colombia and Venezuela at 6%, Bolivia and Paraguay at 5%, Brazil at 4.8% and Chile at 4.5%.

CEPAL Executive Secretary Jose Luis Machinea said the anticipated slowdown in regional growth is due to several factors. One is the U.S. economy, which Machinea expects to go through a soft recession this year due to the decline in the domestic housing market. While this will put pressure on the region’s poorer countries as well as industries that rely on exporting manufactured products to the U.S., he said, overall the impact on Latin America will not be significant. Economic expansion will be hindered by increasing prices for food and fuel as well.