The agency estimates that the contraction in activity will result from the combined effect of “rates, inflation and lower consumption”
The national economy will close the year with a contraction of 1.5%, estimated Tuesday the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) , which attributed the decline to theimpact of government policies on “rates and inflation , ” it which in turn affects a “lower real wages and consumption.”
“The first months of this year have been marked by the rise in prices of public services, due to the elimination of subsidies, for the acceleration of inflation , due to the release of the exchange rate, and there is also a fall real wages , with negative impact on consumption and activity , “he toldDyN the body ‘s executive secretary, Alicia Barcena .
Overall, Latin America and the Caribbean show a contraction in the growth rate of -0.8 percent.
“We are doing ( for Argentina) a projection of -1.5% , which represents a downward revision compared to -0.8 in April. This patch is made depending on the context of economic policy which is seeking to correct some imbalances exhibiting the economy , “said the head of ECLAC.
For South America a contraction of 2.1% is expected in 2016 , “mainly affected by a deterioration in their terms of trade, lower external demand and a significant slowdown in domestic demand, reflecting a significant drop in domestic investment “.
Growth will be led by Dominican Republic (6.0%), Panama (5.9%), and Nicaragua and Bolivia (4.5%).