Latin America, Caribbean Projected To Hit 2.3 Percent Economic Growth in 2023 and 2024

News Americas, WASHINGTON, D.C., Mon. Oct. 30, 2023: The Caribbean and Latin America is poised to achieve a 2.3 percent growth rate in both 2023 and 2024, even as notable challenges to economic prosperity persist.

That’s the word from the Atlas Network Initiatives in Latin America, based in the United States, and the Centro de Estudios de la Realidad Económica y Social (CERES) in Uruguay. The two organization recently jointly unveiled their latest report, titled the “Latin America Macro Vista Regional Report.”

This comprehensive report delves into the economic prospects for Latin America and the Caribbean (LAC) for the current year and the next. Here are the main takeaways:

In many aspects, LAC economies continue to trail behind their global counterparts, with the global economy forecasted to expand by three percent this year, including a robust four percent growth for emerging economies. The international context exhibits signs of intricate resilience, despite enduring issues such as high inflation and interest rates, among other unfavorable factors. For context, global economies, on average, saw growth rates of 3.8 percent over the past decade, surpassing the current economic predictions for the years to come.

The increasingly complex global landscape calls for policy adaptations by governments in Latin America and the Caribbean to address the issues of sluggish growth and development. Fortunately, history has revealed that during times of crisis and widespread uncertainty, opportunities for transformation and rejuvenation often emerge. The LAC region holds substantial potential to extend its influence in global trade by venturing into new markets beyond its traditional partners. Encouraging prospects are presented by countries like India, Japan, Saudi Arabia, and others, provided the region can tap into essential export opportunities while facilitating advantageous imports and investments, fostering a mutually beneficial relationship. Given the abundance of natural resources and agricultural products, LAC economies stand uniquely positioned to reap the rewards of increased global trade.

Furthermore, the report underscores the growing prevalence of pro-market ideologies across the LAC region. Despite Argentina grappling with over-indebtedness, persistent macroeconomic imbalances, and distortionary taxation within a relatively closed economy in recent years, there is room for optimism. The outcomes of Argentina’s August presidential primaries indicate a positive shift. During the presidential election cycle in Argentina, policy proposals inspired by the Austrian School of Economics have gained prominence in public discourse, favoring economic liberalism, particularly at a time when it is needed most.

Dr. Roberto Salinas-León, Executive Director of Atlas Network’s Initiatives in Latin America, emphasized, “In Latin America and the Caribbean, the path forward, in light of today’s adversity and uncertainty, is to embrace reforms promoting free-market principles and to build upon the successes of economic liberalization. While the projection suggests economic growth for LAC in 2023 and 2024, the region has not yet fully realized its potential. This underscores the importance of policymakers in the region championing open markets, with a particular focus on global trade. Global trade should be a central policy concern this year and beyond, and we encourage all LAC governments to leverage their vast export potential.”