Latin America's Economy: Which Country Will Rise in 2024?

At the threshold of a new year, Latin American economies are under close scrutiny by international organizations, which expect a modest rebound in the region in 2024. The complexity of this economic panorama has been scrutinized through the assessments of the International Monetary Fund (IMF) and the exhaustive joint report between the International Labor Organization (ILO) and the Economic Commission for Latin America and the Caribbean (ECLAC).

According to the IMF's October estimate, global growth is projected at 2.9% for 2024, down slightly by 0.1% from the previous year's forecast. In this context, the report published by the ILO in December 2023 not only examines the labor outlook, but also analyzes the economic growth of Latin America for this year that has just begun.

Although South America has seen a reduction in inflation rates, “a widespread and substantial reduction in interest rates is unlikely,” the report pointed out. Next, we will delve deeper into how the economic situation can be structured in the countries of the region. Which Latin American country will have the highest economic growth in 2024?

Based on data from ECLAC, the ILO report provides projections for the most developed economies in the region in 2024:

Panama: 4.2%

Dominican Republic: 4.1%

Venezuela: 4.0%

Costa Rica: 3.8%

Paraguay: 3.8%

Honduras: 3,5%

Guatemala: 3.4%

Uruguay: 3.2%

Nicaragua: 2.9%

Mexico: 2.5%

Peru: 2.4%

El Salvador: 2.0%

Ecuador: 2.0%

Bolivia: 2.0%

Chile: 1.9%

Colombia: 1.7%

Brazil: 1.6%

Haiti: 1.0%

Argentina: -1.0%

According to ECLAC data, the study contemplates another ranking led by the Caribbean and Guyana, which showed a growth of 28.9%. In second place is Antigua and Barbuda with 8.2%.

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What is the expected growth in Latin America in 2024?

ECLAC expects economic growth of 1.8% for Latin America in 2024, while the IMF estimates it to be 2.3%. Both systems outline better economic progress for Central America compared to South America.

If IMF projections come true, Latin America and the Caribbean will reach 7.7% of GDP by the end of 2024, a higher percentage than in 2019 before the Covid-19 pandemic. It should be noted that these predictions are subject to global action; That is, it can be affected by geopolitical issues, war conflicts and volatility of financial markets.

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