Guyana and the poverty-stricken Caribbean state of Haiti will lead the LAC region with high economic growth in 2014, the United Nations forecast in a new report on economic prospects.
Both the countries, according to the UN report, should see 4.5% growth in 2014, while Trinidad & Tobago and Jamaica are projected to grow 2.5% and 1.2% respectively.
Haiti’s economy grew 3.5% in 2013, a record pace of growth for the country struggling to stand on its feet following the devastating 2010 earthquake that killed over 100,000 people and was followed by an outbreak of several deadly diseases such as cholera.
Guyana, a former British colony, is showing remarkable growth over the past years. Last year, its economy grew 4.6%.
“Overall in the Caribbean region, growth is projected at 3.3 percent for this year. Last year, growth for the Caribbean region was estimated at 2.4 percent in 2013, slightly slower than in the last two years,” the report noted.
Latin America as a whole, according to the report, is expected to grow 3.6% over the next two years. Economic recovery in developed economies like the United States and positive macroeconomic policies are the two chief drivers of growth in the region.
The report also predicts significant economic growth in the South American countries of Argentina and Brazil.
In its recent report, the Economic Commission for Latin America and the Caribbean stated that it expects the regions economy to grow 3.2% in 2014, adding that business activity was picking up in Brazil and Mexico.
ECLA has, however, warned that the volatile global economy, higher external financing costs and worsening regional current accounts could pose a threat to growth in some countries in the region.