A Look At Economic Developments Around The Globe

___

SANTIAGO, Chile — Latin America's economy will shrink by 1.7 percent in 2009 due to falling domestic demand, exports and remittances, even if growth rebounds as expected in the second half of the year, a U.N. body said. The region was relatively well-prepared for the current crisis, with many countries holding less debt and more currency reserves than they had in the past, said the U.N. Economic Commission for Latin America and the Caribbean. But many were still vulnerable to steep declines in trade and money sent home by migrants, which had helped drive growth in recent years, according to a statement from the group, which is known as ECLAC.

___

FRANKFURT — Inflation in Germany, Europe's biggest economy, fell to its lowest in 22 years in May as manufacturers' revenues dropped and business failures increased, the Federal Statistical Office said. The Wiesbaden-based office said the consumer price inflation rate fell to zero in May on an annual basis, down from 0.7 percent in April. That was mainly due to higher energy and food prices a year earlier, but also suggests consumers are buying less, causing retailers to slash prices. Energy prices fell about 8 percent, while food prices slid 1.2 percent compared to year-ago levels.