The economies of Latin America grew in 2023, but they do so with less and less strength.

At the end of the year, the growth rate of the region’s gross domestic product (GDP) will increase by 2.1%, according to projections in the latest report of the Economic Commission for Latin America and the Caribbean (ECLAC), entitled “Preliminary Balance of the Economies of Latin America and the Caribbean 2023”. “

This figure represents a decrease compared to the results of 2022, but is higher than the expected growth for 2024, which will amount to 1.8%.

And according to ECLAC, The region is on the way to slowing down which is partly a reflection of the “low dynamism of economic growth and global trade” which means that the region receives a limited boost from the world economy.

This low economic growth will affect other more specific aspects, and in practice it will also mean “a slowdown in job creation and the persistence of informality and gender gaps, among other effects,” the document states.

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Such economic trends, however, do not mean condemnation because there are measures that the states themselves can take to further stimulate economic activity.

According to the Executive Secretary of ECLAC, José Manuel Salazar-Xirinachs, in order to avoid this trend of low growth, countries must “scale productive development policies with a focus on dynamic strategic sectors, promote policies to promote public and private investment and adapt the financing framework to improve resource mobilization.”

Differentiated results

With “chronic” inflation, Argentina was the worst performing country. Photo: GETTY IMAGES

In fact, although the region generally grew less in 2023, ECLAC points out that, for example – according to its estimates – the group consisting of Central America and Mexico grew by 3.5% (in 2022 they reached 4.1%), while the southern America increased its GDP by 1.5% (recorded 3.8% in 2022).

By 2024, Central America and Mexico are expected to grow by 2.7%; and South America realizes an increase of 1.4% of GDP.

But which countries had the highest growth in 2023?

He leads the list Panama (6.1%), followed by Costa Rica (4.9%), Paraguay (4.5%), Mexico (3.6%) and Guatemala (3.4%).

While the worst data were Argentina, which decreased by 2.5 percent and Haiti, which decreased by 1.8 percent. They are followed by countries that achieved positive, albeit modest, growth, such as Chile (0.1%), Peru (0.3%) and Colombia (0.9%).

Although the general context is common, the peculiarities of each country make differences.

Thus, for example, the report indicates that, for example, due to the slowdown of the Chinese economy, those countries with which the Asian giant is the main trading partner will be more exposed to its effects. “39 percent of Chile’s merchandise exports, 32 percent of Peru and Panama’s exports, and 27 percent of Brazil’s and Uruguay’s exports are directed to that country,” the report said.

It also notes that inflation has slowed in all groups of countries except those with “chronic inflation”. Among them are Argentina, Cuba, Haiti and Venezuela.

At the same time, the favorable results achieved by Mexico are explained by this a strong influx of foreign direct investment.

In the table we offer you here, you will be able to see the GDP growth of all countries in the region for the year 2023.