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SANTIAGO, April 7 (Reuters) - The United Nations’ Latin American arm sharply reduced its growth projection for the region in 2015 to 1.0 percent from 2.2 percent, citing global economic concerns and financial volatility.
The revision reflected a global backdrop of economic activity below that expected at the end of 2014, the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) said on Tuesday.
“To lower world growth is added greater international financial volatility as a product of a very expansive monetary policy in Europe and Japan, at the same time as a rise in interest rates is expected in the United States,” it said.
The IMF said in a study on Tuesday that the world’s growth potential took a big hit after the 2007-2009 financial crisis and is likely to lag for years.
ECLAC said the end of the commodities “super-cycle” has also had a negative impact on the region, which largely relies on exports of products such as soy, oil and copper.
The economy of regional powerhouse Brazil will contract 0.9 percent, down from a former forecast of 1.3 percent growth, while Venezuela will contract 3.5 percent, and Argentina will have zero growth, according to the ECLAC figures.
Mexico is a relative bright spot, with growth of 3.0 percent predicted.
For a breakdown with all the projections, see bit.ly/1DfSky7.
Reporting by Rosalba O'Brien; Editing by Ted Botha