NewsWhore
07-14-2011, 12:00 PM
Economic Commission for Latin American and the Caribbean (ECLAC) released the Economic Survey of Latin America and the Caribbean 2010-2011 report today forecasting that the region would grow on average 4.7% in 2011 and 4.1% in 2012 due to less favorable international context. The Executive Secretary of the United Nations body, Alicia Barcena called attention to the macroeconomic policy challenges the region needs to face.
In the report, the DR is listed with a forecast 5% GDP growth for 2011, and 4.5% for 2012.
"How prepared is Latin America and the Caribbean for managing economic growth? We must recover the fiscal space in order to be able to take measures to ensure sustained growth with productive employment and equality," said Barcena commenting on the findings of the report.
The report stresses that in the current scenario, the region's attractiveness to capital inflows and appreciation pressure on local currencies could be of benefit in the short term by helping to relieve poverty and bring down food prices. However, this situation involves a series of risks and difficulties.
As explained, first, the region becomes vulnerable to speculative capital movements in the quest for short-term gains, and this may create bubbles in the prices of financial assets and property markets.
And second, high international liquidity pushes down real exchange rates while pushing up commodity prices (which encourages intensive specialization in commodity exports and production). This increases the vulnerability of the region's economies to external shocks and creates greater investment volatility, thereby negatively affecting the capacity to grow, generate productive employment and reduce inequality.
http://www.eclac.org/cgi-bin/getProd.asp?xml=/prensa/noticias/comunicados/3/43983/P43983.xml&xsl=/prensa/tpl-i/p6f.xsl&base=/tpl-i/top-bottom.xsl
More... (http://www.dr1.com/index.html#6)
In the report, the DR is listed with a forecast 5% GDP growth for 2011, and 4.5% for 2012.
"How prepared is Latin America and the Caribbean for managing economic growth? We must recover the fiscal space in order to be able to take measures to ensure sustained growth with productive employment and equality," said Barcena commenting on the findings of the report.
The report stresses that in the current scenario, the region's attractiveness to capital inflows and appreciation pressure on local currencies could be of benefit in the short term by helping to relieve poverty and bring down food prices. However, this situation involves a series of risks and difficulties.
As explained, first, the region becomes vulnerable to speculative capital movements in the quest for short-term gains, and this may create bubbles in the prices of financial assets and property markets.
And second, high international liquidity pushes down real exchange rates while pushing up commodity prices (which encourages intensive specialization in commodity exports and production). This increases the vulnerability of the region's economies to external shocks and creates greater investment volatility, thereby negatively affecting the capacity to grow, generate productive employment and reduce inequality.
http://www.eclac.org/cgi-bin/getProd.asp?xml=/prensa/noticias/comunicados/3/43983/P43983.xml&xsl=/prensa/tpl-i/p6f.xsl&base=/tpl-i/top-bottom.xsl
More... (http://www.dr1.com/index.html#6)