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Argentina leads economic growth forecasts

According to the OECD, the country governed by Mauricio Macri is expected to grow 2.9%, above Brazil, Chile, Colombia and Mexico. Argentina is expected to return to good economic performance, with an increase in the Bruno Domestic Product (GDP) of 2.9% in 2017 and 3.4% in 2018. The year 2016 was marked by contraction, mainly as a result of lower external demand , the reduced price of agricultural products, as well as the deep recession in Brazil, which affects Argentine exports. However, the organization considers that the impact of reforms and changes in economic policy will begin to be noticed in 2017. The prospects for Chile are equally encouraging. According to the OECD, the Chilean economy will grow 1.7% this year. In 2017, there will be 2.5% GDP growth and in 2018, 2.6 percentage points. The organization also adds that Chilean companies will export more, as a result of improvements in purchasing countries. This progress will boost investment and domestic consumption, which in turn will stimulate the economy and reduce the unemployment rate. The OECD’s perspectives for Mexico changed as a result of Donald Trump’s election, taking into account the intentions announced during the presidential campaign. Therefore, growth of 2.2% was announced, four tenths less than predicted in June. As for Colombia, growth prospects remain interesting, despite having been revised downwards. There should be growth of 2.1% this year and 2.5% next year. In this regard, the organization highlights several reasons, such as the weakness of international trade and the uncertainties associated with the United States’ monetary policy. The OECD, in its biannual report, demonstrates its support for the recent tax reform of the Government of Juan Manuel Santos. Brazil, in turn, is expected to grow again in 2017, around 1%. The prospects for the evolution of the Brazilian economy in 2016 have worsened, with a 3.4% drop in GDP expected.