ECLAC forecasts 3.1% decline for Argentina’s economy this year

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) on Thursday revised Argentina’s growth forecast for this year, predicting a 3.1 percent decline in gross domestic product this year.

The new prediction came as ECLAC improved its growth projection for the wider region, predicting a rise in GDP of 2.1 percent – in the most part due to an improved performance by Brazil.

According to ECLAC, "expected expansion for the region in 2024 remains on the path of low economic growth observed in recent years," due to a "complex" international scenario.

Both economic activity and global trade are below their historical averages, but also with interest rates that remain high, said the United Nations agency.

At a regional level, however, a fall of inflation has led several countries to lower interest rates, "from which a favourable impact on economic activity could be expected.”

Brazil, the largest regional economy, will grow more than expected this year, said ECLAC. Last December it had forecast an expansion of 1.6 percent for the region's largest economy – the new report sees growth of 2.3 percent.

Estimates for Chile, Peru and Uruguay were also improved.

In the case of Argentina, ECLAC revised its forecast significantly. While last December it had predicted a decline of one percent, the new figure of minus 3.1 percent is a huge drop. 

– TIMES/AFP