Despite the international context marked by uncertainty and volatility, the economies of Latin America and the Caribbean will grow by an average of 1.5% in 2018.

In the annual report, published at the end of August, CEPAL indicates that the main reasons for this growth are the increase in private consumption and investment.

There was also a moderate increase in family consumption, due to the increase in employment (particularly among women) and slight increases in real wages. Investment, which continues to be mostly private, remains biased towards the construction sector, even though there is greater dynamics and a trend increase in investment in machinery and equipment (40% of total investment in 2016), with a greater impact on productivity and growth.

Dominican Republic and Panama lead the region’s growth, with an increase in Gross Domestic Product (GDP) of 5.4% and 5.2%, respectively, followed by Paraguay (4.4%), Bolivia (4.3%) , Antigua and Barbuda (4.2%), Chile and Honduras (both 3.9%).

“Our region continues to grow, although at a slower pace than was projected a few months ago, despite international turmoil. This is positive, but it requires us to redouble our efforts to generate a reactivation without falling into excessive fiscal adjustments. Regional integration can play a fundamental role here and that is where we must direct ourselves”, highlighted the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena.