UN body says financial crisis to affect Latin American budgets

Special Report:Global Financial Crisis

LA PAZ, Feb. 4 (Chinese media) -- Bolivia, Venezuela, Mexico and Ecuador will have budget difficulties this year amid the global financial crisis, the UN Economic Commission for Latin America and the Caribbean (ECLAC) forecast.

Most of these nations' fiscal incomes come from the exploitation and export of basic resources, whose prices have dropped in the international market due to the worldwide financial meltdown, said an ECLAC report published Wednesday.

"Their fiscal resources are very unstable due to the marked volatility of oil, gas, copper and food prices, which have dropped dramatically in the last months," the report said.

The total incomes of these countries from exporting basic material will drop from 24.7 percent of the GDP in 2008 to 22.3 percent this year, it added.

The commission suggested that these governments take measures to diversify income sources and reduce exposure to variations in international markets.