2024-04-20 00:29:11
In a recent report, the World Bank has shed light on the economic outlook for Latin America and the Caribbean, forecasting regional GDP growth of 1.6% by 2024, slightly below the 2% projection made in October of the year. past.
This economic slowdown has raised concerns about the future of the region, especially considering that growth is expected to remain at low levels in the years to come, with rates of 2.7% and 2.6% projected for 2025 and 2026 respectively.
Carlos Felipe Jaramillo, vice president of the World Bank for Latin America and the Caribbean, has highlighted the urgent need to take measures to reverse this trend, pointing out that low growth not only represents an economic statistic, but a significant barrier to the comprehensive development of the region.
Among the factors contributing to these conservative projections are low levels of investment and domestic consumption, high interest rates, high fiscal deficits and uncertainty in the prospects of important trading partners such as the United States, China and Europe.
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The report also highlights that the good management of inflation has been a positive point in the region, but that structural challenges persist such as low investment in infrastructure, poor educational quality and high investment costs that affect productivity and competitiveness.
In this context, the World Bank emphasizes the importance of promoting competition as an engine of economic growth. It has been highlighted that when competition is promoted, innovation is stimulated, prices are reduced and consumers are offered more choice, which benefits the economy as a whole.
However, the report also points out that there is significant business concentration in the region, with few companies dominating the markets and limiting competition. To address this problem, it is suggested to strengthen competition agencies, support innovation policies and improve management capacity in companies.
The World Bank urges Latin American and Caribbean countries to take decisive action to improve the business environment and promote competition as part of a comprehensive strategy to boost economic growth and sustainable development in the region.
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