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Caribbean, Latin American Economies Projected To Decelerate In 2023

The Economic Commission for Latin America and the Caribbean (ECLAC) has projected that Caribbean and Latin American economies will decelerate in 2023 and will grow by 1.3%

In its annual report, Preliminary Overview of the Economies of Latin America and the Caribbean, ECLAC projects that regional growth next year will be a third of the rate forecast for 2022.

The Commission said in the context of external uncertainties and domestic restrictions, Latin America and the Caribbean countries will grow by 3.7% in 2022.

That’s just over half of the 6.7% rate recorded in 2021.

“It is estimated that the deceleration in economic growth will intensify in 2023, giving rise to a 1.3% rate,” an ECLAC release stated.

The 2022 review noted that monetary policy responses adopted worldwide that year, in the context of rising global inflation, have sparked greater financial volatility and increased risk aversion.

It said this prompted fewer capital flows to emerging economies, including the region.

However, the document noted that the reduction in global inflation expected in 2023 would moderate monetary policy rate hikes by the leading central banks.

The Preliminary Overview 2022 asserted that it is critical to stimulate investment and productivity to address social demands, the creation of decent employment, reduce informality, inequality, and poverty, and move forward on climate change adaptation and mitigation.

“To that end, innovative public policies are needed on productive, financial, trade and social matters and on the care economy, to avoid another lost decade like the one observed for the 2014-2023 period,” the document said.

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2 COMMENTS

  1. St lucia times, even if the people who own this site do not have a degree, you have to rely on a group of educated people to at least write the stories properly. What is a decelerating economy? Our level of journalism is the worst in the Caribbean. i recall they had some good ones that actually left and got degrees but never stayed in the profession when they got back as jealous and envious lucians- pushed them out of positions. Now look at the results- sub-standard journalism. A smart man know when he is not smart so he hires other smart people to do the job he knows he can’t do. and he pays them well and respect them.

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