Regional GDP is expected to grow just 1.6%, after reaching an estimated growth of 2.2% in 2023, according to a UN report.
The latin american economies will face external and internal risks in 2024. On the external plane, will be affected by the economic slowdown in both the United States and China in that period, which could harm exports, remittances and capital inflows, according to the report’s projection “Situation and prospects of the world economy” (WESP) of the United Nations Organization (UN).
“In 2024, regional GDP is expected to grow only 1.6%, after reaching an estimated growth of 2.2% in 2023“says the report and highlights that during Last year the region’s growth exceeded expectations and the inflation subsidedalthough it remains at high levels, which is why “structural and macroeconomic policy challenges persist”.
Furthermore, he clarifies that “Tightening financial conditions will undermine domestic demand, and weaker growth in China and the United States will limit exports.”.
Negative forecasts for the US and Chinese economies impact Latin America
The Slowdown of the two largest economies in the world will have a downward impact on the region. About USAit is highlighted that it had very positive results last year, but growth is expected to slow down and go from the estimated 2.5% in 2023 to 1.4% in 2024. As to Chinaa great demander of raw materials, the UN highlights that “it took a turn in the second half of 2023, with an annual growth rate of 5.3%. Growth will decline moderately to 4.7% in 2024″.
However, it will also have an impact worldwide: analysts of the WESP They expect it to slow from about 2.7% in 2023 to 2.4% in 2024, “trending below the pre-pandemic growth rate of 3%.”
Likewise, it points out that “the prospects of a prolonged period of tightening of credit conditions and the increase in financing costs present serious difficulties for an indebted global economy that needs more investments to revive growth, fight climate change and promote progress towards Sustainable Development Goals (SDG)“.
Source: Ambito
