BRASILIA, May 31 (Xinhua) — The Economic Commission for Latin America and the Caribbean (ECLAC) on Monday forecast that the region\’s economic growth this year would remain below levels of the past five years.
The instability of the international market was still significant and, even with the recovery in China, the region\’s main economic partner, the imbalance of the U.S. and European Union economies should affect Latin American countries, said ECLAC Deputy Executive Secretary Antonio Prado at the organization\’s 33rd session here.
\”It is necessary to consider that there would be no further improvement of the major economies of the world, nor all the consequences have appeared already. Certainly the market volatility of the U.S. and European countries affect the economies of Latin American and Caribbean countries. The extent is not clear, but it will affect (us),\” he said.
Prado said that, in the six years before the global financial crisis, Latin America and the Caribbean countries managed to grow at unprecedented levels, with a fall in poverty from 44 percent to 33 percent of the population.
However, about nine million people who had escaped poverty returned to it as a result of the crisis.
ECLAC presented the document \”Time for Equality. Closing Gaps, Opening Trails,\” which recommends greater involvement of governments in the economy and public policies for income distribution and promotion of equality.
The text states that tax treaties, established between public and private sectors, should be aimed at income redistribution as well as overcoming the enormous structural diversity, giving the government greater ability to redistribute resources.\”
