In 2024, Latin America faces economic growth slowdown, with the World Bank predicting a GDP rise of only 1.6%, down from earlier 2.3% estimates.
This forecast, reminiscent of the 2010s, highlights ongoing structural problems preventing prosperity.
Key growth barriers include low investment, weak consumption, high interest rates, and falling commodity prices, worsened by global uncertainties.
Moreover, external factors such as geopolitical tensions and natural phenomena like El Niño add strain, alongside high public spending.
While some relief is expected in 2025 and 2026 with growth rates of 2.7% and 2.6%, disparities persist.
Guyana projects an exceptional 34.3% growth, unlike struggling Argentina (-2.8% ) and Haiti (-1.8%).
Among the regional economies, others performing well in 2024 will be the
- Dominican Republic with 5.1%,
- Paraguay with 3.8%, and
- Nicaragua with 3.7%.
Uruguay is projected to grow by 3.2%, Peru by 2.7%, Mexico by 2.3%, Chile by 2%, Brazil by 1.7%, Colombia by 1.3%, and Ecuador by 0.7%..
William Maloney, World Bank’s Chief Economist for the region, notes a return to pre-pandemic growth levels, pointing out challenges like poor education and infrastructure.
Violence further deters investment, highlighted by a high-profile assassination in Ecuador, signaling severe security issues.
The World Bank warns that prolonged low growth affects development, seen in reduced public services, limited job opportunities, and increasing poverty and inequality.
It suggests boosting competitiveness, innovation, and management to meet global standards, essential for economic recovery.
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