[Economics] A. Latina would have a "difficult" 2023 and its economy would only grow 1%

[Mockys.]

 

 

Latin America and the Caribbean will face a difficult 2023, with an estimated economic growth of just 1% due to "uncertainties" on the global stage, the Inter-American Development Bank (IDB) warned this Sunday.

(See: IDB warns of the need for policies to reduce poverty in Latin America).

"In general, 2023 will be difficult for Latin America and the Caribbean, given the complexity of the global scenario and its significant uncertainties," with growth of 1% if no new difficulties arise, the IDB said in its 2023 Macroeconomic Report, presented by its chief economist, Eric Parrado, during the closing day of the organization's annual Assembly in Panama.

"On the side of the specific economic growth of Latin America and the Caribbean, what we estimate for 2023 is that growth will be around 1%, which for the development challenges of our countries is very low," said Parrado.

The IDB projection is less than the 1.8% growth forecast for the region this year by the International Monetary Fund (IMF) and the 1.3% forecast by the UN Economic Commission for Latin America and the Caribbean (Cepal). .

(See: Latin America, close to being a giant in renewable energy).

The IDB Assembly, which culminated this Sunday and which brought together the heads of finance from the countries of the region, takes place amid concerns following the bankruptcy of three banks in the United States, including Silicon Valley Bank, as well as difficulties in the American First Republic and the Swiss Credit Suisse.

The IDB even contemplates the possibility of 0% growth this year in the region if there is any financial shock, Parrado said.

The grim Macroeconomic Report was released a day after the new IDB president, Brazilian Ilan Goldfajn, stated that the economic prospects for Latin America and the Caribbean are clouded by "superimposed crises."

"From the pandemic (of covid-19) to the Russian invasion of Ukraine, with higher debts and record inflation, food and energy insecurity and, of course, the climate crisis," stressed the IDB helmsman, without including in his list turmoil in the banking sector.

 

https://www.portafolio.co/economia/finanzas/america-latina-tendra-un-2023-dificil-y-su-economia-crecera-poco-segun-el-bid-580134