Slight Upward Revision For 2023

ECLAC's Economic Projections for Latin America and the Caribbean

Slight Upward Revision for 2023

The Economic Commission for Latin America and the Caribbean (ECLAC) has slightly revised its growth projection for the region in 2023. ECLAC now expects a 2.7% growth, up from the previous estimate of 2.6%. This revision is attributed to stronger-than-anticipated economic activity in several countries.

Key Points:

• ECLAC's revised growth projection for Latin America and the Caribbean in 2023 is 2.7%.
• The upward revision is due to stronger-than-expected economic performance in some countries.
• The outlook for 2024 remains unchanged, with ECLAC forecasting a growth rate of 1.8%.

Moderate Growth Expected in 2024

ECLAC's growth forecast for 2024 remains unchanged at 1.8%. The commission cites a challenging global economic environment and ongoing uncertainties as reasons for the modest growth outlook. External factors, such as the war in Ukraine and high inflation, are expected to weigh on the region's economy.

Key Points:

• ECLAC expects Latin America and the Caribbean to grow by 1.8% in 2024.
• The growth outlook is tempered by global economic challenges and uncertainties.
• External factors, such as the war in Ukraine and inflation, are expected to impact regional growth.

Decline in Foreign Direct Investment

Foreign Direct Investment (FDI) in Latin America and the Caribbean declined by 9.9% in 2023. This decline was driven by reduced investment in the mining sector and lower cross-border mergers and acquisitions. Despite the decline, FDI inflows remain above the average of the last decade.

Key Points:

• FDI in Latin America and the Caribbean declined by 9.9% in 2023.
• The decline was caused by reduced investment in mining and fewer mergers and acquisitions.
• Despite the decline, FDI inflows are still higher than the average of the past ten years.

Increase in Employment

ECLAC estimates that the number of employed persons in Latin America and the Caribbean grew by 1.4% in 2023. This growth was concentrated in the services sector, which accounted for 60% of new jobs. However, informal employment remains a significant challenge, with an estimated 48% of workers in the region employed informally.

Key Points:

• Employment in Latin America and the Caribbean grew by 1.4% in 2023.
• The services sector accounted for the majority of new jobs.
• Informal employment remains a problem, with nearly half of workers employed informally.

Sources

1. ECLAC: Growth in Latin America and the Caribbean will be 2.7% in 2023 and 1.8% in 2024
2. ECLAC: Foreign Direct Investment in Latin America and the Caribbean Fell by 9.9% in 2023, but Amount Received is Above the Average of the Last Decade
3. ECLAC: Employment in Latin America and the Caribbean Grew by 1.4% in 2023