Alicia Barcena, Executive Secretary of the UN Economic Commission for Latin America and the Caribbean (ECLAC), speaks during the presentation of the ECLAC report in Santiago, Chile, July 31, 2019. (Xinhua/Jorge Villegas)
"The economic slowdown in the region has remained on a downward trajectory during the last five years, which is a matter of great concern," ECLAC Executive Secretary Alicia Barcena said during the presentation of the report.
SANTIAGO, July 31 (Xinhua) -- The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) on Wednesday lowered the forecast for the region's economic growth in 2019 from 1.3 percent to 0.5 percent.
The revised forecast, down 0.4 percentage points from the region's growth registered in 2018, was driven by a lack of momentum in investments and exports as well as a fall in public spending and private consumption, said the ECLAC in its report.
Besides, an unfavorable international scenario, such as "less momentum from world economic activity and global trade, greater volatility and financial fragility, questioning of the multilateral system, and an increase in geopolitical tensions," was another reason behind such reduction in growth expectations, the ECLAC said.
"The economic slowdown in the region has remained on a downward trajectory during the last five years, which is a matter of great concern," ECLAC Executive Secretary Alicia Barcena said during the presentation of the report.
This year, "the slowdown will be generalized and affect 21 of the 33 countries of Latin America and the Caribbean. On average, South America is expected to grow by 0.2 percent, Central America 2.9 percent, and the Caribbean 2.1 percent," Barcena said.
According to the ECLAC, policy space should be expanded to tackle the slowdown and spur economic growth, with measures in the fiscal and monetary areas to shore up public spending, as well as in investment and productivity.
In the fiscal arena, the ECLAC stressed the need to reduce tax evasion and illicit financial flows, promote taxes related to the digital economy, environment and public health, and realign tax expenditures toward productive investment.
