By Graciela Ibanez

SANTIAGO, Chile–The United Nations Economic Commission for Latin America and the Caribbean, or Eclac, on Wednesday lowered its 2013 growth outlook for the region to 3%, from a previous estimate of 3.5%.

The reduced outlook for 2013 is partly due to slow growth in Brazil and Mexico, the region’s two largest economies.

Countries that were growing at a faster pace such as Chile, Panama and Peru also faced a slowdown in recent months, the Eclac said in a statement.

The grim global outlook will continue taking a toll on the region, whose economy largely depends on exports of commodities to Europe and China. Commodities prices have decreased in recent months.

Consumption will remain a driver of economic growth while investment as a contribution to gross domestic product will be modest, the Eclac said.

“The current situation highlights problems of growth sustainability in most of the region’s economies,” said Eclac Executive Secretary Alicia Barcena.

The Eclac estimated Brazil, Latin America’s largest and the world’s sixth-biggest economy, this year will grow 2.5%, down from 3% it anticipated in April. Brazil grew only 0.9% in 2012 versus a 2.7% increase in 2011.

The U.N. commission expected Mexico will grow 2.8%, versus a previous estimate of 3.5%.

Paraguay led growth estimates this year with a 12.5% increase in GDP, followed by Panama with 7.5%, Peru with 5.9%, Bolivia with 5.5%, Nicaragua with 5% and Chile with 4.6%.

In 2012, the region grew 3% versus 2011, with the European recession, the Chinese deceleration and slow U.S. growth all weighing on Latin American and Caribbean economies.

Inflation, meanwhile, decreased to an average 5.6%, versus 6.8% in 2011.

Write to Graciela Ibanez at [email protected]