Growth is set to remain relatively stable in Latin
America and the Caribbean, at around 3 per cent, on
average, as a slowdown in some countries, including
Mexico, is likely to be offset by faster growth in
Argentina and Brazil. In 2012 and the first months
of 2013, regional growth has been driven mostly by
domestic demand based on moderate but consistent
increases in public and private consumption and
investment (ECLAC, 2013). Governments generally
turned to more supportive fiscal and monetary
policies in a context of low fiscal deficits and low
inflation for the region as a whole. Growth of exports
and imports fell sharply in 2012, which resulted in a
slight increase in the region’scurrent account deficit.
Domestic demand will continue to support growth in
2013 based on rising real wages and employment, as
well as an expansion of bank credit. I n addition, a
recovery of agriculture and investment should contribute
to better economic performances in Argentina
and Brazil after weak growth in 2012. On the other
hand, owing to sluggish international demand and
lower export prices of oil and mining products
(although they remain at historically high levels) a
slowdown is expected in the B olivarian Republic of
Venezuela, Chile, Ecuador, Mexico and Peru.