Latin America's economies grew in 2023, but at a slower pace than before, according to the latest report from the Economic Commission for Latin America and the Caribbean (ECLAC), titled "Preliminary Overview of the Economies of Latin America and the Caribbean 2023". By the end of the year, the region's gross domestic product (GDP) growth rate will have reached 2.1%, which is lower than the results of 2022, but higher than the expected growth for 2024, which will be 1.8%. ECLAC explains that the region is on a deceleration path that partly reflects the "low dynamism of economic growth and global trade" that limits the region's stimulus from the world economy.
This low economic growth will also affect other more concrete aspects and will imply "a slowdown in job creation and the persistence of informality and gender gaps, among other effects", the document states. Skip Recommendations and continue reading These economic trends, however, do not mean a doom as there are measures that the countries themselves can take to boost more economic activity. According to ECLAC's executive secretary, José Manuel Salazar-Xirinachs, to escape from this low growth trend, countries should "scale up productive development policies with a focus on strategic and dynamic sectors, promote policies to encourage public and private investment, and adjust the financing framework to enhance resource mobilization".
Differentiated results Getty Images With a "chronic" inflation, Argentina was the country that obtained the worst results. In fact, although the region as a whole grew less in 2023, ECLAC highlights that for example -according to its estimates- the group formed by Central America and Mexico grew 3.5% (in 2022 they had reached 4.1%), while South America increased its GDP by 1.5% (it had registered 3.8% in 2022). For 2024, it is expected that Central America and Mexico will grow 2.7%; and South America will achieve a 1.4% increase in GDP.
But, which are the countries that grew the most in 2023? The list is headed by Panama (6.1%), followed by Costa Rica (4.9%), Paraguay (4.5%), Mexico (3.6%) and Guatemala (3.4%). While the worst data were obtained by Argentina, which decreased 2.5% and Haiti, which contracted 1.8%. After these, there are countries that achieved positive but meager growth figures such as Chile (0.1%), Peru (0.3%) and Colombia (0.9%). Although the general context is shared, the particularities of each country make differences.