World Bank Cuts LATAM 2024 GDP Forecast

• The World Bank has revised downward its outlook for growth in Latin America and the Caribbean (LAC) to 1.6% from its previous estimate of 2.3%, saying the region continues to lag growth rates registered in other parts of the world.
• The World Bank forecasts that regional GDP will expand by 1.6% in 2024. GDP growth of 2.7 and 2.6 are expected for 2025 and 2026. These rates are the lowest compared to all other regions in the world and insufficient to drive prosperity, according to the World Bank.
• LAC has reached a critical juncture. While the region has made significant progress in economic stabilization over recent decades, growth has stalled, undermining progress. 
• Factors driving these growth numbers include low levels of investment and domestic consumption, elevated interest rates and high fiscal deficits, declining commodity prices, and uncertainty in the prospects of important partners such as the U.S., China, Europe, and other G7 countries.
• "Persistent low growth is not just an economic statistic, it's a barrier for development. It translates into reduced public services, fewer job opportunities, depressed salaries and higher poverty and inequality. When economies stagnate, the potential of its people is constrained. We must act decisively to help Latin America and the Caribbean break away from this cycle," said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.

(Source: The World Bank Group)