The World Bank has once again revised its growth forecast for Latin America and the Caribbean downwards for 2023, to 1.3%, according to its global outlook report published this Tuesday.
The institution had already warned, in a report published in October, that the expected drop in commodity prices starting this year will slow the growth of the Gross Domestic Product (GDP) of Latin American economies, which are highly dependent on their exports.
In Tuesday's report, the development bank warns that inflation could be more persistent in the region than initially anticipated, potentially leading to continued interest rate hikes by central banks and further restricting short-term growth.
This situation, the organization warns, could hinder the region's inclusive development.
In the case of Brazil, the World Bank expects the economy to grow by 0.8% this year, hampered by a restrictive central bank policy, necessary, on the other hand, to tackle inflation.
In Mexico, the organization expects growth of 0.9% in 2023, constrained by high interest rates, persistent inflation and a reduction in exports.
In Chile, in fact, a contraction is expected: the organization projects a loss of 0.9% of GDP due to the erosion of consumption that will result from the drop in real income.
Argentina, burdened by its very high inflation, will grow by 2%, according to the World Bank.
For 2024, however, the agency slightly revised its outlook upwards to 2.4%.
Source: EFE
