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The World Bank cuts growth forecasts in the region, what will happen in Uruguay?

The World Bank cuts growth forecasts in the region, what will happen in Uruguay?
The World Bank cuts growth forecasts in the region, what will happen in Uruguay?

He world Bank cut the region’s growth by 50 basis points, projecting that the GDP of the region will increase by 1.8% this year, while in Uruguay It is expected that the improvement of economic activity be one of the most important of South America.

The international organization predicts that the country will grow by 3.2% during 2024, just below what is projected by the government, thus being the second highest in South America, only surpassed by Paraguay, which would reach 3.8%.

At the other end appears Argentina, that will drag regional growth, with an expected contraction of 3.5% this year, being the most important of Latin America and the Caribbean.

Meanwhile, the growth of Brazil will moderate to 2% in 2024; Peru will increase by 2.9%; Chili 2.6% will do so; and Colombia would increase by 1.3%.

“The forecast has been updated downwards basically due to the marked bearish review of Argentina, which we expect to contract this year before resuming growth next year,” anticipated the authors of the WB report.

The report notes that the region faces risks such as worse global financial conditions and high levels of local debt that may have an effect on private demand and the pace of necessary fiscal consolidation in the region.

In the case of Mexico, 2024 growth was updated three tenths downward to 2.3%, especially due to a moderation in the domestic demand, which was above expectations for several years.

Projections for the following years

When analyzing the forecasts of the B.M. for 2025 and 2026, the expected growth for Uruguay is in both cases 2.6%, being surpassed in the ranking by other countries, with Argentina in the lead, which would grow between 5% and 4.5% “as economic imbalances are addressed and the inflation”.

Brazil would grow at 2.2% both years, supported by cuts in the monetary policy rate and the recovery of private consumption and investment, while Paraguay it would reach 3.6%; Colombia at 3.1% and 3.2%; Chili, at 2.2% in both years; and Peru at 2.6% and 2.4%.

Source: Ambito

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