Although the agency improved its projections, it notes a slowdown in growth, which will be much lower than in 2022.
The International Monetary Fund (IMF) has slightly raised its growth forecast for Latin America and the Caribbean for 2023.
In its latest report on World Economic Outlook, the agency predicted that the region will experience growth of 1.8% in 2023one tenth more than what had been predicted in October last year.
However, despite the slight increase, regional economic growth expected to be lower than the 3.9% expansion achieved in 2022.
For its part, the IMF estimates in its latest report that Latin America and the Caribbean will grow by 2.1% by 2024.
In the ‘top 10’ of countries of the international organization, Guyana will be the one that will grow the mostwith a 25.2% in 2023 and 21.2% in 2024, followed by Saint Kitts and Nevis (8.4%), Venezuela (6.5%), Saint Vincent and the Grenadines (6%), Saint Lucia (5.8%), Antigua and Barbuda (5.6%), Barbados (5%), Dominica (4.8%), Belize (4.5). With 4.3%, Paraguay, the Dominican Republic and the Bahamas occupy tenth place.
As to Mexicothe IMF estimates that its growth will be 1.7% in 2023 and 1.6% in 2024; While for Argentina will be 2% in both years. For its part, Brazil will grow by 1.2% and 1.5%; Bolivia 2.9% and 2.8%; Colombia 1.1% and 2.1%; Ecuador 3% and 2.8%; Peru 2.5% and 3.2%; while for Uruguay it predicts growth of 3.6% and 2.7%.
For Chile, the agency projects a decrease of 1.5% in 2023 and a recovery of 1.9% in 2024.
“A Challenging Year”
The IMF highlights that the economies of Latin America “they held up well” in 2022despite the impact of the conflict between Russia and Ukraine and the rise in interest rates worldwide.
“In 2022, the region’s economy expanded by almost 4%, employment recovered strongly andthe service sector recovered from the damage caused by the pandemic“, maintains the agency in an article written by analysts Gustavo Adler, Nigel Chalk and Anna Ivanova, published this Wednesday.
It also indicates that inflationary pressures are receding in many countries due to early and determined efforts by central banks, as well as lower world food and energy prices.
However, despite the encouraging news on growth and inflation, “2023 is likely to be a challenging year for the region,” the analysts conclude in the article, warning that riots and political paralysis in Latin America could have consequences for economic activity.
“The continued possibility of unrest and political paralysis has the potential to erode trust and weigh on economic activity,” they say.
social tensions
In the article they do not mention any of the political and social crises that have erupted in recent weeks in countries like Peru and Brazil, although they note that “the growing social discontent and the decline in confidence in public institutions has been an important trend in the region for some time.
“Social tensions were certainly exacerbated during the pandemic. The poorest people, particularly those working in face-to-face services, bore the brunt of the economic fallout. While government support helped, many were unable to fully insulate themselves from the shock negative, as shown the notable increase in poverty“, reads the document.
Analysts indicate that “despite the obvious difficulties,” policies “should focus on ensuring economic stability, stimulating growth and job creation, supporting entrepreneurship, and addressing the pressing social needs faced by many people in the region.” “.
In this way, they emphasize, it will contribute to “mitigate social discontent and restore confidence in public institutions”.
Source: RT
