Trade in Latin America and the Caribbean would be virtually stagnated for the third consecutive year, as the outlook for the global economy in 2014 has deteriorated, said the ECLAC yesterday in a preview of a report that it will broadcast next week.
The persistent weakness of the Euro zone and the lower growth in China, the largest consumer of commodities produced in the region, would be among the main reasons for the negligible expansion of trade in the region, as in 2012 and 2013.
The ECLAC said the magnitude of the weak performance of Latin America, was one of the reasons the entity reduced the region's growth forecasts for this year.
The body, which answers to the UN and had originally estimated Latin America and the Caribbean would grow 2.7%, reduced its estimate for growth to 2.2% in 2014 due to the weak external and domestic demand, along with a lack of investment.
In this context, the International Monetary Fund said yesterday that the world economy could be stuck in a situation of weak growth for a long time, with countries trying to get out of past heavy debts and unemployment.
In August, the ECLAC had initially estimated a slight 3.8% increase in regional exports, mainly due to a rise in volumes. Meanwhile, imports would grow by 3.8% because of a volume increase and a slight rise in prices.
Source: Reuters