Santiago. The financial system of Latin America and the Caribbean will increase 2.1 % this yr, amid the development of low financial progress noticed in recent times, ECLAC reported this Thursday.
The Financial Fee for Latin America and the Caribbean added that Brazil’s Gross Home Product (GDP) will develop 2.3 % and Mexico’s 2.5 %, whereas exercise in Argentina will decline 3.1 % in 2024.
In December, the company had estimated an enlargement of the regional financial system of 1.9 %.
“The area is going through a posh worldwide state of affairs, characterised by progress in financial exercise and world commerce beneath their historic averages, together with rates of interest that stay excessive in developed nations, leading to larger financing prices for rising nations,” he famous.
“The low progress anticipated in 2024 is just not solely a brief drawback, however displays the autumn within the development progress charge of regional GDP,” he added.
Colombia’s GDP would increase 1.3 % this yr, whereas Chile’s 2.3 and Peru’s 2.5. Venezuela would develop 4 %.
Among the many threat components, ECLAC listed the rising geopolitical tensions and the menace that the rise in fundamental merchandise might delay an rate of interest reduce by central banks, affecting world financial enlargement.
The group mentioned that the area must spend money on crucial areas to extend productiveness, infrastructure, telecommunications, digitalization, analysis and improvement, vital enhancements in well being packages, and adaptation to instructional methods.
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– 2024-05-19 14:59:51
