2023-08-26 10:00:20
He International Monetary Fund (IMF) forecasts that the Latin American economy will grow by 1.9% in 2023, which represents an improvement of three tenths compared to the latest projections of the organization published last April.
This upward revision of growth prospects for the region carried out last July is due to stronger than expected growth in some large countries such as Brazil or Mexico, whose economies have been boosted by the agricultural sector or the service sector.
However, this increase in Gross Domestic Product (GDP) of Latin America is much lower than that registered by the region in 2022, when it was 3.9%. The year-on-year decline is due to the recent moderation of rapid growth in 2022 due to the reopening after the pandemic, as well as declining commodity prices.
Meanwhile, looking to 2024, the IMF estimates that the Latin American economy will grow by 2.2%, the same figure that it calculated last April. It was on that occasion that the forecast for 2024 improved by two tenths.
Latin America will thus be one of the regions that grows the least in both 2023 and 2024 within the group of emerging market and developing economies. However, globally, it will have a better economic performance than the Eurozone, whose GDP will increase by 0.9% in 2023, or higher than that of the United States, which will grow by 1.8%.
By country, it is worth noting the improvement in the forecasts for Brazil, whose estimated growth in 2023 is 2.1%, well above the 0.9% estimated last April. Among others, this increase in the figure is due to the good performance of its GDP in the first quarter of the year.
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