Guyana, Paraguay, Uruguay, and Peru are leading Latin America in economic growth this year, according to the World Bank.
Guyana’s GDP is set to soar by an impressive 43%, driven by its booming oil industry. Uruguay, Paraguay, and Peru are forecasted to achieve growth rates of 3.2%, 3.9%, and 3.1%, respectively.
In contrast, Argentina’s economy is projected to shrink by 3.5% this year, though the World Bank suggests the country could see a remarkable turnaround with 5% growth in 2025.
Brazil and Mexico, the region’s largest economies, are anticipated to end the year with GDP growth of 2.8% and 1.7%, respectively, but are expected to experience slower growth in 2025.
Central America is performing notably well, with Costa Rica’s economy growing by 4% and Guatemala, Nicaragua, Panama, and El Salvador achieving growth rates of 3.7%, 3.6%, and 2.9%, respectively.
However, challenges such as unreliable electricity, a weak education system, and high capital costs are undermining the region’s potential as a nearshoring destination, according to the World Bank.
The bank also encouraged Latin American countries to build on their success in managing inflation and stabilizing macroeconomic factors.
Brazil and Peru are likely to meet their inflation targets by December, with other major economies expected to follow soon after—paving the way for potential interest rate cuts across the region in the near future.
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Publish date : 2024-11-07 04:05:00
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