SANTIAGO: Latin America and the Caribbean’s economic recovery this year will be slower than forecast, a key UN commission warned Monday, revising down its regional growth forecast to 1.1 percent.

The sharpest lowering of the forecast by the Chile-based Economic Commission for Latin America and the Caribbean (ECLAC) was for the South America sub-region.

A deep recession in the region’s biggest economy Brazil and an economic crisis in Venezuela are dragging down South America. ECLAC lowered its overall forecast for the Latin and America and Caribbean region to 1.1 percent from a December estimate of 1.3 percent growth. That is still stronger than the 1.1 percent contraction recorded for the region in 2016. The body forecast that crisis-hit Venezuela’s economy will shrink by 7.2 percent this year.

“Countries must stimulate greater dynamism in investment and increase productivity via innovation, with environmental sustainability and while protecting employment,” ECLAC said. Central America is forecast to grow by 3.6 percent, thanks in part to a strong outlook for its key trade partner, the United States.—AFP