Latin America is facing low to medium‐term growth ( one of “ A World Bank report has the issues that was discussed forecasted that regional by the G20 in Brazil ). The region GDP will expand by 1.6 perhas faced significant challenges cent in 2024 , with GDP including tightening global financial growth of 2.7 and 2.6 conditions ; lower global growth ; expected for 2025 and 2026 .” inflation and growing food and energy insecurity .
Climate change also presents substantial challenges to LAC ( Latin America and Caribbean ) countries , which will need them to improve the flexibility and adaptability of their economies . Policies aimed at supporting the reallocation of labour and capital across sectors ; investing in basic skills and human capital ; improving transparency and economic governance to encourage investment in technology and expertise ; and creating fiscal space to manage the climate transition could help them position themselves to take advantage of the opportunities afforded by the climate transition .
“ Latin America and the Caribbean has made slow but consistent progress addressing the imbalances induced by the pandemic in an international environment that is just now showing signs of stabilising . However , challenges remain to redress fiscal imbalances , recover lost earnings power and regain the advances in reducing poverty of the previous decade ,” commented the World Bank in a 2024 report .
Boosting growth
FACING NEW CHALLENGES
Trends and economic forecasts for the Latin America and Caribbean ( LAC ) region come under the spotlight .
“ Latin America faces a disappointing growth path ; growth is moderating . It needs to concentrate on how that growth trajectory can be lifted . We have been discussing the key growth-enhancing reforms that can be undertaken by countries . When you look at Latin America and the Caribbean as a whole , [ we saw ] 2.6 per cent growth in 2023 . In 2024 , [ we saw ] 2.6 per cent growth . This is not enough to lift the performance of the Latin American economies . When I think of Latin America and the big economies in Latin America , it is time to have the ambition to reform in a pro‐growth direction . I hear that countries recognize that ,” commented Kristalina Georgieva , Managing Director , International Monetary Fund ( IMF ), on 24 October 2024 ( during the Global Policy Agenda press briefing ).
Kristalina Georgieva , Managing Director , IMF .
According to a 2024 World Bank report , the region ’ s central task remains boosting lacklustre growth rates
Image : Shutterstock . com .
According to a 2024 World Bank report , the region ’ s central task remains boosting lacklustre growth rates . The report forecasts that regional GDP will expand by 1.6 percent in 2024 . GDP growth of 2.7 % and 2.6 % are expected for 2025 and 2026 . These rates are insufficient to drive prosperity , it said .
“ Growth may be enhanced by inducing more competition in the region ’ s economies , combined with necessary complementary investments in firm and worker capabilities , and improvements in national innovation systems that can support the development , diffusion and utilisation of new ideas , products and processes ,” commented the World Bank report .
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