2024-04-13 04:16:58
The World Bank has released its annual report on competitiveness in Latin America, where it has adjusted downward economic growth projections for the region, including Colombia, amid persistent economic challenges.
According to the report, Latin America’s Gross Domestic Product (GDP) is estimated to grow a modest 1.6% in 2024, a figure that is among the lowest compared to other regions in the world.
This growth is projected to increase slightly to 2.7% and 2.6% by 2025 and 2026 respectively, although it remains insufficient to boost prosperity in the region.
The World Bank has highlighted that these data put many Latin American households under pressure, as social transfers are declining and wages have not yet reached pre-pandemic levels.
You may be interested in: MinMinas announces crucial discussion on energy prices at the next meeting of the Creg
As for Colombia, the World Bank’s initial projections for 2024 pointed to growth of 1.8%, however, in this April update, they have revised the estimate downwards, placing it at 1.3%. However, a rebound in the Colombian economy is expected for 2025 and 2026, with growth rates of 3.2% and 3.1% respectively.
Within the region, Ecuador is emerging as the economy with the lowest growth in 2024, with a modest 0.7%, followed by Colombia with 1.3%, Bolivia with 1.4% and Brazil with 1.7% .
William Maloney, chief economist for Latin America and the Caribbean at the World Bank Group, has pointed out that although Colombia faces slow growth in 2024, good recovery numbers are expected in the coming years.
Regarding the reforms proposed by Gustavo Petro’s Government, Maloney has indicated that the focus should be on attracting Foreign Direct Investment (FDI), highlighting nearshoring opportunities in Atlantic and Pacific ports.
You can read: In Colombia, electronic sports will have a constant annual growth of 6.78% until 2027