The ECLAC slightly improved the already negative growth projections for Argentina of -1% for 2024 compared to the 2.5% drop this year. The economies of Latin America and the Caribbean They face a difficult environment for the remainder of this year and next due to weak global activity, the effect of high interest rates, low domestic consumption and lower trade, he said in a report this Thursday.
To contain the inflation the most developed countries in the world, including United States which is Latin America’s main trading partner, drastically raised interest rates, restricting access to financing and cooling the world’s main economies when they were just taking off after the paralysis caused by the coronavirus pandemic.
ECLAC: what is expected for the world economy
It is expected that the World economy grow 3% in 2023 and 2.9% in 2024, below the historical average of 3.8% registered between 2000 and 2019. United States Federal Reserve estimates that his country’s economy will expand a modest 1.4% in 2024 and 1.8% in 2025. China, which is the second trading partner of the region, projects a growth of 5% this year and 4.2% in 2024, slightly below what was anticipated in the middle of the year although above 3% in 2022.
Although inflation has decreased in most developed countries, their interest rates have not yet been reduced. Consequently, difficulties in accessing financing are expected to continue next year.
ECLAC: how the LATAM economies closed the year
To the end of 2023 All Latin American subregions will show lower growth compared to 2022: South America will grow by 1.5% (3.8% in 2022), Central America and Mexico by 3.5% (4.1% in 2022) and the Caribbean ( not including Guyana) 3.4% (6.4% in 2022), according to ECLAC.
QBy 2024 the slowdown will continue: South America would grow by 1.4%, Central America and Mexico by 2.7% and the Caribbean by 2.6%.
On the verge of recession Chili, with a modest growth of 0.1% in 2023 and 1.9% expected for next year.
In Latin America, Panama grew the most in 2023, 6.1%, followed by Costa Rica, with 4.9%. Brazil grew by 3% and is expected to fall to 1.6% in 2024; Colombia 0.9% which would rise to 1.7% in 2024 and Mexico 3.6% and 2.5% expected for next year.
Thus, while between 1951 and 1979 the regional GDP grew at an average of more than 5% annually, between 1980 and 2009 it grew at less than 3% annually and between 2010 and 2024 at an average of 1.6% annually, he said. ECLAC.
Refering to occupation, The regional economic body expects that by the end of 2023 it will have grown by 1.4%, equivalent to a reduction of four percentage points compared to the 5.4% in 2022. This better job creation will continue in 2024, with an estimated growth of just the 1%.
Source: Ambito
