UN forecasts 1.6% growth in Latin America’s GDP

The United Nations (UN) forecasts lower economic growth for Latin America and the Caribbean in 2024, projecting a 1.6% increase in regional GDP, compared to an estimated 2.2% increase in 2023.

This forecast is attributed to restrictive monetary policies that will negatively impact aggregate demand, slower external demand that will limit export growth and factors such as volatility in global financial markets.

The report also highlights the potential for a slowdown in the economies of the United States and China, which could affect exports, remittances and capital inflows to the region.

The lack of macroeconomic policies and weak investment in Latin America hampered the region’s ability to address challenges such as climate change and meteorological phenomena.

As for annual inflation, it is estimated to decline from 6.8% to 4.3% in 2024, excluding Argentina and Venezuela, where it is expected to be higher. In addition, slower employment growth and an increase in the unemployment rate are projected in some economies.

K. Tovar

Source: Descifrado

(Reference image source: Markus Spiske, Unsplash)

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