According to an ECLAC report, in 2011 Latin America and the Caribbean will maintain the recovery that began in the second half of 2009 following the international economic crisis, and will grow by 4.7% thanks to the boost of internal demand.
In the Economic Survey of Latin America and the Caribbean 2010-2011, presented by the Executive Secretary of the United Nations body, Alicia Bárcena, ECLAC points out that this growth implies a 3.6% rise in per capital GDP, and declares that the current situation calls for close attention to be paid to the macroeconomic policy challenges that will be facing the region.
Ms. Bárcena wonders “How prepared is Latin America and the Caribbean for managing economic growth? We must recover the fiscal space in order to be able to take measures to ensure sustained growth with productive employment and equality".
In 2011, regional growth is mainly being driven by private consumption, which is attributable to improved labor indicators and increased credit. At the same time, the fact that idle productive capacity is being used up to sustain internal demand is pushing up investment, which is benefiting from greater credit availability to return to pre-crisis levels.
According to the report, growth will also have a positive impact on the region's labor market, which means that the unemployment rate may fall from 7.3% in 2010 to between 6.7% and 7% in 2011.
more:
