Latin America and the caribbean will grow by only 1.4% in 2023 compared to the 1.9% that the world will do, according to calculations presented by United Nationswhich warns of a rapid deterioration in the region’s economy and of the difficult decisions faced by the authorities to try to straighten the course.
(See: Cepal warns of a 2023 ‘of difficulties’: what would they be).
After growing at an estimated rate of 3.8% in 2022, this year Latin American and Caribbean countries will experience a sharp slowdown due to the complex global situation, inflation that will continue to be high, plus little fiscal space and other problems structural.
According to UNthe largest economies in the region will see very limited growth during 2023, affected by both external and internal factors and with significant risks that the situation will worsen even more.
In Brazil, the gross domestic product (GDP) is expected to increase 0.9% amid a strong inflation, higher interest rates and lower export growth.
Mexico will grow 1.1% as a result of the economic slowdown in USAless access to credit and problems in the supply chain that will limit industrial activity.
(See: A. Latina, a key region in the political reconfiguration).
In Argentina, the UN speaks of a ‘crisis’ marked by record levels of inflation and adjustment of the monetary policy that will make the country grow 1%, although with high possibilities that the final figure will be worse.
For Colombia, the UN estimates a growth of 1.5%.
(See: Uncertainty reigns in Latin America after inflation figures for 2022).
Inflation will continue to be a serious problem throughout the region in 2023, with a forecast rate of 16.3%, slightly below that of 2022, and triggered in the case of Argentina and Venezuela.
In its outlook report for the global economy, the UN stresses that Latin America has to urgently speed up its economic growthwhich remains at insufficient levels to improve living standards and conditions socioeconomic.
(See: Latino economy would only grow 1% in 2023, according to Moody’s Analytics).
Among other things, the organization recalls that poverty indicators have been stagnant for more than a decade and that there are significant risks of debt crises in the public and private sectors.