Latin American Economy & Business - September 2018 (ISSN 1741-7430)

In recent years, high oil prices have generally boosted economic performance in the region, via increased export earnings and stronger government spending. However, the increase in oil prices so far this year does not seem to be having a significant positive impact on the region’s net energy exporters. Even though Brent oil prices are approaching US$80/barrel – a level not seen since late 2014 – GDP growth in Latin America looks set to remain weak. Indeed, the Economic Commission for Latin America and the Caribbean (Eclac) are forecasting growth of just 1.5% this year, up only marginally from 1.2% last year.