ECLAC forecasts economic slowdown in 2023

The Economic Commission for Latin America and the Caribbean (ECLAC) once again improved its growth forecast for Latin America this year, from 2.7% estimated in August to 3.2%, but anticipates that the slowdown in the economy will accentuate in 2023.

In a statement, ECLAC explained that in 2023 the countries of the region will once again face an unfavorable international context, in which a slowdown in both growth and global trade, higher interest rates and less global liquidity are expected. product of the war between Russia and Ukraine.

The war negatively affected global growth and with it the external demand for regional products,” added ECLAC, a technical agency of the United Nations.

The Latin American countries will once again face a complex environment for fiscal and monetary policy after the increases in interest rates in the world, which will have a negative impact on private consumption and investment.

The subregions of Latin America will show lower growth next year: South America will grow 1.2% compared to 3.4% in 2022, while Central America and Mexico will grow 1.7% compared to 2.5 percent. The Caribbean will grow 3.1%, not including Guyana, compared to 4.3% this year.

Chile, with a 0.9% drop in its GDP, will be the most affected country in the region next year. He explained that most of the countries in the region “are particularly affected by the low dynamism of China, which is an important market for its exports of goods.”

(With information from AFP)

uniones@eleconomista.mx