The report by the Getúlio Vargas Foundation (FGV) revised upwards the indicators of most of the countries in the region.
The business climate improved during the third quarter of 2023 in Latin America and is at its best level in the last two years, although in Uruguay registered a setback, according to the Economic Climate Index (ICE) prepared by the Brazilian Center for Economic Studies Getúlio Vargas Foundation (FGV).
The indicator is produced by the FGV based on surveys of 119 specialists from 15 countries. Overall, he jumped more than 30 points, from 65.8 points in the second quarter to 99.6 points in the third. However, in the country it went from 119.4 points to 114.9 points, beyond the strong increase in foreign investment.
Despite this decline, Uruguay is fourth, only surpassed by Paraguayan, the country with the best index in the region (172.7 points), Brazil (121.4) and Mexico (118.7). further back they appeared Peru (85.8 points), Chili (76.6), Colombia (61.4), Ecuador (49.9), bolivian (47.7) and Argentina (30,3).
When evaluating the improvement, the evaluation for Brazil and Mexico were key, analyzed the FGV. It is that the neighboring country jumped from 58.8 points in the second quarter to 121.4 points in the third, while the North American did it from 85.7 to 118.7 points.
The Foundation specified that some factors were “the trajectory of the fall in the rate of inflation and the approval of the new fiscal framework and the tax reform”, to which he added “the upward revisions of the projections for this year’s GDP”. As for Mexico, he attributed the situation to the drop in inflation and the appreciation of its currency against the dollar.
Projected GDP growth by country
The survey evidenced the upward revision of the projections for the growth of the GDP of the countries of the region, with the exception of the country, Peru, Chile and Argentina. However, the forecast for economic growth in 2023 for Latin America in general was raised from 1.1% in the second quarter to 1.7% in this third.
The country that will grow the most this year, according to projections, is Paraguay, with an expansion of 4.6%, followed by Bolivia (3%), Mexico (2.3%), Ecuador (2.2%), Brazil ( 2.2%), Peru (1.9%), Colombia (1.5%) and, finally, Uruguay (1.3%). Meanwhile, in Chile a retraction of 0.5% is expected and in Argentina of 1.3%.
Source: Ambito
