United Nations, May 16 (EFE).- The slowdown in the economy of Latin America and the Caribbean is being confirmed, according to the UN, which maintained its growth forecast for the region this year at 1.4%.
In an update of its economic forecasts, the United Nations left the initial calculation that it had published last January unchanged, unlike what happened with other areas of the world and for the global economy as a whole, where there were upward revisions.
In the case of Latin America, the report indicates that after the robust growth of 2022 -when the Gross Domestic Product (GDP) of Latin America and the Caribbean increased by 3.8%- the region is seeing a pronounced deterioration as a result of lower world growth, high inflation and structural problems.
In addition, it highlights that a higher cost of credit is negatively affecting consumer spending and investment and that the little fiscal space available to governments makes it impossible to give more support to economic activity in most countries.
According to the UN, this year’s slowdown is widespread in the region, but particularly affects Argentina, Brazil, Chile and Colombia.
Brazil, the largest economy in the area, will grow only 1% in 2023, according to the latest United Nations calculation.
In Mexico and Central America, meanwhile, it expects GDP to grow by 2%, four tenths more than what was forecast in January, while the Caribbean will grow by 8%.
On this occasion, data broken down by country in the region is not offered.
By 2024, the UN estimates that the region as a whole will recover some economic rhythm and grow by 2.4%, one tenth less than in its previous report.
In the world as a whole, the United Nations forecasts growth of 2.3% for this year thanks to better prospects in the United States, Europe and China and 2.5% for next year.
