(MENAFN- Saudi Press Agency)
Santiago, Shawwal 22, 1437, July 27, 2016, SPA -- Latin America's economy will shrink in 2016 by 0.8 per cent, according to a projection by the UN Economic Commission for Latin America and the Caribbean (ECLAC), according to dpa.
The group's annual Economic Survey of Latin America and the Caribbean, released Tuesday in the Chilean capital Santiago, blamed the recession on a slow global economy, falling prices for the region's commodities and uncertainty and volatility in global markets.
Ongoing recessions in Brazil and Venezuela, among others, helped put the brakes on regional growth.
Brazil's economy is expected to shrink 3.5 per cent this year, while Venezuela should prepare for an 8 per cent contraction, according to the report. Argentina should also expect a recession of 1.5 per cent, ECLAC said.
Slowing demand both in export and domestic markets have also clouded the region's economic outlook, according to the report.
Falling oil prices hurt Venezuela and Brazil, both major exporters - but helped Central America, a net importer.
While South America's economy overall was expected to contract by 2.1 per cent, the outlok was brighter in smaller Central America, where the regional economy was expected to grow 3.8 per cent.
--SPA
01:43 LOCAL TIME 22:43 GMT
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