ECLAC raises projection for Latin America’s GDP growth in 2021 to 5.9%

RIO DE JANEIRO, BRAZIL – The Economic Commission for Latin America and the Caribbean (ECLAC) on Tuesday (31) published a report in which it revised its projection for gross domestic product (GDP) growth in Latin America and the Caribbean upwards to 5.9% this year. In July, the forecast stood at 5.2%.

For 2022, the current forecast is of 2.9% growth.

The report released on Tuesday is entitled “Latin America and the Caribbean Economic Study 2021: Labor Market Dynamics and Employment Policies for a Sustainable and Inclusive Recovery beyond the COVID-19 Crisis.”

The organization cautions that the pandemic exacerbates long-standing structural issues in the region, such as low investment and productivity, informality, inequality and poverty.

ECLAC notes that this year’s strong growth is mainly a result of the base of comparison. There are also positive impacts from external demand and commodity prices, it points out.

In the case of Brazil, ECLAC expects economic growth of 5.2% this year and 2.2% the next.

For Argentina, the forecast is for growth of 7.5% and 2.7%, respectively.

In all of South America, the Commission expects GDP growth of 5.9% in 2021 and 2.6% in 2022.

For Chile, ECLAC projects growth of 9.2% this year and 3.2% in 2022.

In the case of Mexico, it expects 6.2% and 3.2% growth.