The Economic Commission for Latin America and the Caribbean (ECLAC) projects a modest growth rate of 1.8% for 2024.
It anticipates a slight increase to 2.3% in 2025. This forecast, fueled by South America’s expected 2.4% growth, underscores ongoing economic stagnation.
José Manuel Salazar-Xirinachs, ECLAC’s executive secretary, pointed out the region’s decade-long low-growth cycle.
It is compounded by rising low-productivity, informal employment, and weak investment. Over the past decade, the average growth rate was just 0.9%. This indicates a critical need for transformative policies.
Salazar-Xirinachs stressed the need to shift towards high-productivity sectors. Most jobs currently are in low-mobility sectors like construction and services.
These sectors, dominating informal employment, contribute to significant inequality. Informal workers lack access to social protections, exacerbating disparities.
ECLAC calls for comprehensive policies to encourage productive development with appropriate macroeconomic conditions.
This approach includes boosting public and private investments and implementing structural reforms to enhance productivity.
Key future areas are energy transition, sustainable agriculture, and digital transformation. These sectors will create more productive and sustainable jobs.
ECLAC also highlights the need for better access to financing and education to bridge human capital gaps.
In conclusion, Latin America’s economic revitalization depends on a strategic shift towards more dynamic sectors.
Robust policy support is essential to navigate both global uncertainties and internal challenges effectively.
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