BM estimates growth in Latin America at 2.3%

The World Bank lowered the estimate for GDP growth in Latin America and the Caribbean for this year by about 0.4 points, to 2.3%, as a result of higher inflationary pressures derived from the war between Russia and Ukraine.

In a new report, the institution includes, among other uncertainties that could affect the growth of the region, such as the evolution of the coronavirus and the possible appearance of new variants.

The agency estimates that the region will grow by 2.2% in 2023, with most countries managing to reverse the losses caused by the pandemic.

However, the World Bank highlighted that the long-term consequences of the pandemic crisis persist and need attention. The regional poverty rate rose to 27.5% in 2021 and remains above its pre-pandemic level of 25.6%, while learning losses could result in a 10% reduction in future income for millions of school-age youth.

To avoid a return to the low growth rates of the 2010s, the World Bank suggests that the region’s countries carry out a series of “long-overdue” structural reforms and take advantage of the opportunities offered by an “increasingly more green”.

K. Tovar

Source: Finanzas Digital