MEXICO CITY, Mexico (CMC) — The Economic Commission for Latin America and the Caribbean (ECLAC) Thursday predicted lower than expected economic growth for Latin America and Caribbean countries, slashing its forecast for the region by 0.7 point to 1.5 per cent.

The “Economic Survey of Latin America and the Caribbean 2018,” released by ECLAC said this regional growth is occurring in a complex global scenario, characterised by trade disputes between the United States, China and other nations; growing geopolitical risks; a decline in capital flows toward emerging markets in the last few months and a rise in sovereign risk levels; depreciations of local currencies against the dollar; and a global economic expansion that is tending to lose momentum.

It added that the economic growth is as a result of a rebound in domestic demand, private consumption especially, and a slight increase in investment.

Antigua and Barbuda is the highest rated country within the Caribbean registering growth of more than four per cent this year, according to the “Economic Survey of Latin America and the Caribbean 2018,” released by ECLAC and regarded as one of the organisation’s most traditional publications, issued since it was founded in 1948.

ECLAC’s executive secretary, Alicia Bárcena, speaking at the ceremony at the ECLAC’s Subregional headquarters here, said “our region continues to grow, although at a slower pace than what was projected several months ago, despite international turbulence.

“That is positive but it demands that we redouble our efforts to prompt a reactivation, without resorting to excessive fiscal adjustments. Regional integration can play an important role here, and we must aim in that direction,” she added.

According to the annual report, overall average growth in the region – the projection of which declined by seven-tenths versus the last estimate provided by the organisation in April – maintains a positive trend, despite showing signs of slowing.

As on previous occasions, there is great heterogeneity among the various countries and sub- regions, since South America is expected to grow 1.2 per cent in 2018, while Central America will notch 3.4 per cent growth and the Caribbean 1.7 per cent.

ECLAC said that the Dominican Republic and Panama will lead the region’s growth, with increases in Gross Domestic Product (GDP) of 5.4 and 5.2, respectively, followed by Paraguay (4.4 per cent,), Bolivia (4.3 per cent), Antigua and Barbuda (4.2 per cent), and Chile and Honduras (both with 3.9 per cent).