This 2023, the economy of Latin America and the Caribbean will slow down. Therefore, it will close with a growth of 1.4%, according to the United Nations Organization (UN).
The forecast rate for this year is the same given at the beginning of the year. As a result of the deterioration of the economy due to lower world growth, high inflation and structural problems in our region, we have stagnated unlike other areas where there were upward revisions.
The UN details that the higher cost of credits affects spending and investments, in addition to the fact that “the little fiscal space” of governments makes the outlook difficult. All this happens after a 3.8% rise in GDP in 2022.
Which countries are most affected by the economic downturn? The UN warns that Argentina, Brazil, Chile and Colombia will suffer particular consequences. For example, Brazil, despite being the largest economy in the region, will grow only 1%.
By 2024, they expect the GDP of Latin America to recover ground and reach 2.4%, one tenth less than in their previous report.
Source: Larepublica
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