The UN’s Economic Commission for Latin America and the Caribbean (ECLAC) predicts 1.7% growth for Latin America in 2023.
This is compared to the growth in 2022. The forecast comes from ECLAC’s recent report. South America may grow by 1.2%.
Central America and Mexico could see a 3% rise.
The Caribbean might lead with a 4.2% increase. For 2024, ECLAC expects the whole area to grow by 1.5%.
The breakdown is 1.2% for South America, 2.1% for Central America, and 2.8% for the Caribbean.
ECLAC also warns about slower job growth. The rate may only go up by 1.9% in 2023 and 1.1% in 2024.
The UN body is concerned about job quality too. Workers could face more risks and less security in the future.
Challenges
Latin America has faced many economic challenges in the past. From high inflation to debt crises, the region has seen it all.
In the 1990s, a wave of privatization and trade opened up markets. But the gains were not even.
Some countries flourished, while others struggled. The 2008 global crisis hit hard, slowing down growth for years.
Since then, the area has worked to stabilize its economies. Some nations focused on exports, while others built up domestic demand.
In the 2010s, tech and services started to play a bigger role. Yet, social inequality remains a major issue. Wealth is often concentrated in the hands of a few.
Now, ECLAC’s new report sheds light on what 2023 may hold. The predicted 1.7% growth shows modest improvement.
But challenges like job growth and social security remain. These are crucial for the well-being of the population.
Experts are watching these trends closely. Policymakers will have to balance growth with social equality.
It’s a tough job, but it’s vital for the region’s future. The report serves as a guide for what steps may be needed next.