The Economic Commission for Latin America (ECLAC) presented new economic projections for Latin America and the Caribbean for this year, in which it positively updated the growth forecast for Uruguay to place it at 3.6% of the Gross Domestic Product (GDP).
The improvement is 0.4% in relation to the last forecast released five months ago and which had also rectified the previous data of economic growth of 2.6%. 2023 closed with meager growth, the result of the drought and the diversion of consumption to Argentinaof just 1%.
With the updated ECLAC projections, Uruguay will be the third in South America with greater progress in its economy, behind Venezuela (4%) and Paraguay (3.8%), which did not register updates to their forecasts.
According to new estimates released, Latin America and the Caribbean will grow on average 2.1% this year, with South America growing 1.6%, Central America and Mexico 2.7% and the Caribbean (excluding Guyana) 2.8%.
ECLAC warned that, despite the improvement in indicators, “the expansion expected for the region in 2024 remains on the path of the low economic growth observed in recent years, and the great challenge is how to move towards higher, more dynamic and inclusive”.
What risks will the region’s economies face?
In its new report, the commission warned that global markets will be marked by several risk factors generated by growing geopolitical tensions.
He gave as an example the strong rearrangement of Value chainsas well as the possibility that an increase in commodity prices that could delay the reduction of policy interest rates by the main central banks, with negative effects for the global economic growth.
“If interest rates remained high for longer, they could increase interest rates even further. vulnerabilities due to the debt burden in several emerging and developing economies, and also the vulnerability of the financial sector in developed countries,” ECLAC added.
Source: Ambito
