How has 2023 been for Latin America's economies? And what is the forecast for 2024?
According to a recent report by the Economic Commission for Latin America and the Caribbean (ECLAC), the region's economy is growing, albeit at a modest rate. In 2023, the Gross Domestic Product (GDP) is estimated to register a variation rate of 2.2%.
The report indicates that all sub-regions will grow less than they did in 2022. Furthermore, the forecast for 2024 predicts a lower growth rate, accentuating the overall slowdown in GDP growth and job creation. This economic outlook is attributed, in part, to the limited boost the region has received from the rest of the world due to the global context.
Breaking down the rates, South America is expected to grow by 1.5% in 2023 (down from 3.8% in 2022), Central America and Mexico by 3.5% (compared to 4.1% in 2022), and the Caribbean (excluding Guyana) by 3.4% (down from 6.4% in 2022).
Looking ahead to 2024, the overall growth rate for Latin America and the Caribbean is expected to average 1.9%. South America is projected to grow by 1.4%, Central America and Mexico by 2.7%, and the Caribbean (excluding Guyana) by 2.6%.
In 2023, the countries with the highest GDP growth rates are Panama (6.1%), followed by Costa Rica (4.9%), Paraguay (4.5%), Mexico (3.6%) and Guatemala (3.4%). Argentina decreased by 2.5 % and Haiti by 1.8 %.
GDP growth rates of Latin American countries:
- Panama: 6.1%.
- Costa Rica: 4.9%
- Paraguay: 4.5%
- Mexico: 3.6%
- Guatemala: 3.4%
- Honduras: 3.3%
- Nicaragua: 3.3%
- Dominican Republic: 3.1%
- Brazil: 3%
- Venezuela: 3%
- El Salvador: 2.3%
- Bolivia: 2.2%
- Ecuador: 1.9%
- Cuba: 1.5%
- Uruguay: 1%.
- Colombia: 0.9%
- Peru: 0.3%
- Chile: 0.1%
- Haiti: -1.8%
- Argentina: -2.5%
The report concludes that implementing "macroeconomic policies to incentivise and facilitate greater investment” is essential for building “resilience to climate change” and strengthening “the region's capacity for growth".
