ECLAC estimates that Brazil's economy will shrink 2.8% in 2015
According to ECLAC, the main factors behind this slowdown in Latin America and the Caribbean include weakening domestic demands; a slowdown in emerging economies, especially China
The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) revised Monday (Oct. 5) the economic growth forecast for the region in 2015, to -0.3% from a previous 0.5%. ECLAC also estimates that these countries will grow around 0.7% in 2016. In Brazil, the economic contraction should stand at 2.8% in 2015 and 1% in 2016. In the previous forecast, the Commission had calculated that the Brazilian economy would shrink 1.5% this year.
According to ECLAC, the main factors behind this slowdown in Latin America and the Caribbean include weakening domestic demands; a slowdown in emerging economies, especially China; the dollar hike; increasing volatility of financial markets, and falling basic product prices.
The statement noted that commodity-based South American economies (specializing in such goods as oil and ore) that have growing trade integration with China will feel the impact harder.
To face the slowdown, the organization said it is crucial to reverse the decline in the investment rate that affects the growth potential in the medium and long term. “Energizing investments is a fundamental task to change the current deceleration phase as well as to achieve a path of sustained and sustainable growth in the long term,” the statement concluded.
Translated by Mayra Borges
Fonte: ECLAC estimates that Brazil's economy will shrink 2.8% in 2015
