IDB: Latin American public debt reduced between 2020 and 2023
According to the Inter-American Development Bank, IDB, Latin America's public debt was reduced to pre-pandemic levels between 2020 and 2023
The Inter-American Development Bank, IDB, indicated this Monday that Latin America’s public debt has been reduced and is close to reaching pre-pandemic levels.
According to the organization, public debt has been reduced in the region thanks to the reforms and fiscal adjustments applied.
According to the IDB, “public debt experienced a decrease of 11 percentage points in relation to the Gross Domestic Product (GDP), going from 71 % in 2020, to 66 % in 2021, 62 % in 2022 and 60 % in 2023.”
Although it recommends that countries continue implementing reforms, the IDB estimates that the increase in GDP this year will be 1.6 % and that in 2025 it will rebound to 2 %.
In general terms, the organization points out that the countries of Latin America and the Caribbean have demonstrated “unexpected strength” last year. However, they should not lose sight of factors that may influence the increase in debt, such as the El Niño phenomenon, since it could “lead to a 3% increase in debt as a percentage of GDP in three years.”
The IDB emphasizes the importance of governments working to develop “quality education, encourage small businesses, facilitate access to global markets, attract foreign direct investment and improve the credit market.”
M.Pino
Source: bancaynegocios
(Reference image source: Unsplash+, in collaboration with Getty Images)
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