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Panama recorded the highest growth rate in the region.
- author, Drafting
- Role, BBC World News
Latin American economies grew in 2023, but they are doing so less and less strongly.
At the end of the year, the region's GDP growth rate will rise by 2.1%, according to projections in the latest report of the Economic Commission for Latin America and the Caribbean (ECLAC), entitled “ Primary Balance of the Economies of Latin America and the Caribbean 2023 .”
This number represents a decrease compared to the results of 2022, but it is greater than the expected growth for 2024, which will be 1.8%.
According to the Economic Commission for Latin America and the Caribbean, The region is on a slowdown This partly reflects “low dynamism in economic growth and global trade,” which means the region receives a limited boost from the global economy.
The document states that this lower economic growth will affect other, more specific aspects, and in practice will also mean “slower job creation, the persistence of the informal sector and gender gaps, among other impacts.”
However, these economic trends do not mean condemnation, as there are measures that countries themselves can take to further encourage economic activity.
According to the Executive Secretary of the Economic Commission for Latin America and the Caribbean, José Manuel Salazar-Zerenache, in order to escape this trend towards low growth, countries must “expand the scope of productive development policies with a focus on dynamic strategic sectors, and strengthen policies aimed at encouraging investment.” Public and private, and adapting financing. A framework for enhancing resource mobilization.”
Mixed results
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With “chronic” inflation, Argentina was the country with the worst results.
In fact, although the region overall grew less in 2023, the Economic Commission for Latin America and the Caribbean highlights, for example, that – according to its estimates – the group composed of Central America and Mexico grew by 3.5% ( In 2022 it reached 4.1%), while South America increased its GDP by 1.5% (recorded 3.8% in 2022).
By 2024, Central America and Mexico are expected to grow by 2.7%; South America achieved an increase of 1.4% of GDP.
But which countries achieved the greatest growth 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 data was worse Argentina, which decreased by 2.5%, and Haiti, which decreased by 1.8%. Then there are countries that achieved positive, albeit weak, growth numbers, such as Chile (0.1%), Peru (0.3%), and Colombia (0.9%).
Although the general context is common, the specificities of each country make differences.
Thus, for example, the report notes that, for example, due to the slowdown in the Chinese economy, those countries whose main trading partner is the Asian giant will be more vulnerable to its effects. The report indicates that “39% of Chilean goods exports, 32% of Peru and Panama’s exports, and 27% of Brazilian and Uruguay’s exports are destined for that country.”
It is also noted that inflation slowed in all groups of countries, except for those suffering from “chronic inflation”. Among these countries are Argentina, Cuba, Haiti and Venezuela.
At the same time, the positive results obtained by Mexico are explained by Strong access to foreign direct investment.
In the table we present to you here, you will be able to see the GDP growth of all countries in the region for the year 2023.
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