In a highly positive sign for Latin America business and investment, the UN’s Economic Commission for Latin America and the Caribbean (ECLAC) has significantly raised its predictions for growth in the region during 2021, offering a strong indication of economic reactivation in the wake of the global pandemic.
According to a newly released report ECLAC reports that the gross domestic product (GDP), Latin America and the Caribbean, is expected to grow 5.9% overall. This follows a 5.2% increase in a previous forecast. previous reportOnly available in July
The revised number is a welcome boost in Latin America business. It is driven by significant growth projections for individual countries.
While Guyana and Panama continue to lead the regional pack, with unchanged anticipated growth rates of 16% and 12% respectively, Peru’s expected growth has risen from 9.5% to 10.6%. Meanwhile Chile’s has increased from 8% to 9.2% and the Dominican Republic has seen its prediction go from 7.1% to 8%.
The most impressive increases in anticipated growth saw El Salvador and Colombia’s rates rise more than 2% each. In the case of El Salvador, it leapt from 5% to 7.5%, while Colombia’s expected GDP growth moved from 5.4% to 7.5%.
ECLAC’s revised figure follows the Salvadoran government’s own recent upgrading of its 2021 projection, however it fell short of the 9% growth predicted by El Salvador’s central bank last month.
Notably, none the countries had their GDP growth forecasts decreased since the previous report. This indicates a very positive outlook for Latin America businesses.
Investors will find more good news in the region
There are many positive indicators that have been released from several countries in recent weeks that indicate a better outlook for growth in the region, which bodes well for Latin America business.
They include: 50% increase in public investmentIn Peru, August saw a 6.4% decline in unemployment during July. El Salvador has seen an increase in internal production and industrial activity. job numbers return to the same levelAs it was before the global health crisis.
Colombia was reported to be in the midst of this. among the top three nationsOrganisation for Economic Cooperation and Development (OECD), for company formation.
Investors are increasingly confident in such figures, as the climate Latin America business has. recently reported to be in its best stateIn more than three decades.
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