Latin America. Due to the weakness of the world economy, caused mainly by the difficulties faced by Europe, the United States and China, which have affected the growth of Latin America and the Caribbean, our region will have a smaller expansion in 2012 than in previous years, according to ECLAC estimates.
In its report Economic Survey of Latin America and the Caribbean 2012, released in Santiago de Chile, the agency points out that the slowdown shown by the economies during 2011 extended during the first half of 2012, which has caused the growth projection for the full year to fall to 3.2%, from the 3.7% announced last June.
Among the explanations for this behavior of the economy in the region, the entity indicates that the marked cooling of external demand and a decreasing trend in the prices of most of the main basic export goods, have transformed foreign trade into the main channel of transmission of international crises to the economy of the region.
This is despite the fact that private consumption has been the main driver of the regional expansion, thanks to the favourable evolution of labour markets, the increase in credit and, in some cases, remittances.
According to the study, a large part of the South American and Central American countries, in addition to Mexico, will have in 2012 growth rates of gross domestic product (GDP) similar or slightly lower than those of 2011.
In relation to employment, the document explains that the increase in work and the improvement in its quality as well as higher wages have contributed to the moderate expansion of domestic demand in the region and its consumption.
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