UPDATE 1-U.N. sees Mexico shrinking, Brazil slowing in 2009

Thu Jan 15, 2009 2:50pm EST
(Recasts, adds background on countries' economies)
MEXICO CITY, Jan 15 (Reuters) - A U.N. report presented on Thursday forecast Mexico's economy will shrink 1.2 percent this year and Brazil's will grow a lackluster 0.5 percent, as both are smacked by a global credit crisis and economic downturn.
"Latin America will decelerate significantly in 2009. Nobody will escape this crisis," Robert Vos, a director at the United Nations' social and economic affairs department, told a news conference.
"For Latin America and the Caribbean together, it's a growth rate of 2.3 percent in 2009 versus 4.3 percent in 2008," he said.
Brazil is taking a hit as weaker global demand erodes exports and a credit crunch stifles domestic consumer appetite. Several industries, including steel, mining and automobiles, have laid off workers, reduced shifts and cut investments.
In Mexico, Latin America's No. 2 economy, many analysts believe the central bank may cut interest rates on Friday to reduce the depth of a feared recession.
A slight majority of experts in a Reuters poll on Tuesday forecast the Banco de Mexico will cut rates. (Reporting by Luis Rojas, Editing by Chizu Nomiyama)