According to the Economic Commission for Latin America and the Caribbean (ECLAC), growth projections show that countries with raw materials such as petroleum and minerals, and with a growing commercial relationship with China will register the largest slowdown, such as Venezuela at -6.7% and Brazil at -2.8%. These two countries will show the biggest negative growth.
However, at the other end of the spectrum, Panama will show the highest growth at 5.8% followed by the Dominican Republic at 5.6%.
ECLAC projects that Latin America and the Caribbean will register a negative growth of 0.3% in 2015 down from the previously forecasted growth of 0.5%.
The main reasons for the contraction in the economies are a weakness of internal demand, a deceleration of the emerging economies, especially China, the strengthening of the dollar and an increase in the volatility of financial markets. However, despite the overall deceleration, ECLAC says that there are different dynamics among the different countries.
ECLAC highlights that countries with the closest links to the United States, including Mexico and the Central American and Caribbean nations, will show better growth. Mexico and Central America are due to grow by 2.6% and the Caribbean at 1.6% as a whole.
In 2016, the organization is forecasting 0.7% growth for the whole region.
Read more: http://www.cepal.org/en/pressreleases/eclac-forecasts-regions-economies-will-contract-03-2015-and-grow-07-2016