* UN sees regional economy growing 3.1 pct in 2010
* UN sees Brazil 0.8 pct GDP dip in 2009, rebound in 2010
* UN expects Mexico economy to contract 7 pct in 2009
(Adds ECLAC chief comments)
By Rodrigo Martinez
SANTIAGO, July 15 (Reuters) - A United Nations economic
body predicts Latin America's economy will bounce back in 2010
with 3.1 percent growth, rebounding from the 1.9 percent
contraction it has forecast for the region this year.
In a report issued on Wednesday, the U.N. Economic
Commission for Latin America and the Caribbean revised its
expectation saw a slightly more severe recession in 2009 than
the 1.7 percent contraction it foresaw in June.
One casualty of the global recession this year would be
foreign direct investment in Latin America and the Caribbean,
ECLAC said. It said it expected FDI to fall by 35 percent to 45
percent this year from a record $128.3 billion in 2008.
But it has noted the region's financial systems were less
exposed to international volatility than in the past since they
were less indebted and had more foreign reserves, softening the
impact of the global economic crisis.
ECLAC's executive secretary Alicia Barcena said the
stronger outlook for 2010 is based on the recent recovery of
commodities prices and improved performance of particular
industries, such as the auto sector in Brazil.
The region's largest economy, Brazil will see its economy
shrink 0.8 percent this year, but rebound to 3.5 percent growth
in 2010, the report said.
Reeling from a weaker U.S. economy and the H1N1 flu virus,
Mexico is expected to contract 7 percent in 2009, the ECLAC
said. The group said Mexico should grow about 2.5 percent in
2010.
But Barcena said the country, which sells the bulk of its
products to the neighboring United States, faces hard times.
"The Mexican case is the most worrisome," Barcena told
reporters. "Mexico faces a very difficult and complex
recovery."
Argentina, which is seen by some analysts as one of the
most vulnerable countries in the crisis due to its heavy
dependence on commodities for revenues, is expected to grow 1.5
percent in 2009.
The economy in Argentina, a major soy exporter, should pick
up in 2010 with 3 percent growth, ECLAC said.
(For a table of GDP forecasts by country, please see
[ID:nN15343648])
((alonso.soto@thomsonreuters.com; +562-370-4250; Reuters
Messaging: alonso.soto.reuters.com@reuters.net))
Keywords: LATAM ECONOMY/
