Growth in Latin America and the Caribbean is expected to decelerate sharply in 2023.
The World Bank projects GDP in the region to increase by 1.3 percent before recovering somewhat to 2.4 percent in 2024.
The multilateral agency says the slowdown reflects efforts by monetary authorities to reduce inflation and spillovers from a weak global outlook.
The bank says sluggish growth in the United States and China is expected to reduce export demand while rising U.S. interest rates are likely to keep financial conditions restrictive.
The World Bank says slow global growth is expected to weigh on commodity prices, weakening South America and the Caribbean’s terms of trade.
Regional investment is expected to decline, dampened by higher financing costs, lower business confidence, and elevated policy uncertainty.
The World Bank says Latin America and the Caribbean is estimated to have grown by 3.6 percent in 2022.
The bank says strong expansion in the year’s first half was driven mostly by consumption, supported by recovering labor markets.
However, activity weakened late last year as slowing global growth and tighter financial conditions took effect.
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Edited by Jesus Chan
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