First modification:
Despite the fact that in 2022 the region had better results than expected by financial institutions, the Organization for Economic Cooperation and Development predicts that in 2023 the growth of the main Latin American economies will be much lower. Colombia and Argentina will be the most affected countries, followed by Brazil and Chile.
Latin America performed better than expected so far in 2022, the region surprisingly exceeded the expectations of economic growth that the OECD itself had raised, the rise in demand for rich raw materials from Latin countries and therefore an increase in its exports would be the main reason for the positive numbers; however, the organization believes that in 2023 this good outlook will no longer support Latin America.
The organization “anticipates that after a good 2022 the growth of Latin America will be just above OECD economieshindering the process of economic convergence that was already slow before the pandemic,” read a statement posted on the Twitter account.
And it is that in the world panorama the entity expects the global Gross Domestic Product (GDP) to fall from 3.1% to a modest 2.7% in 2023a trend that would affect the Latin American region and complicate the dynamism of their economies.
Brazil, Mexico, Argentina and Colombia would perform worse than the world economy as a whole in 2023 and GDP growth in all these countries is expected to be lower than this year.
“The rebound is expected to run out of steam during 2023 and 2024, against a backdrop of tightening global and local financial conditions, the withdrawal of most fiscal support, and declining commodity prices,” I point out the OECD in its Economic Outlook, which does not include a forecast for the whole of Latin America.
If reviewed by cases, Colombia would be the economy that would perceive the greatest slowdown in economic growth next year and its GDP will go from 8.1% this year to 1.2%.
It is expected that Argentina grows only 0.5% next year and what Chile presents a contraction of 0.5%. Brazil’s GDP would grow by only 1.2% compared to 2.8% this year.
The country that would be least affected would be Peru, with growth of 2.6% compared to 2.7% in 2022.
With PA.
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