Inspenet, April 6, 2023
According to the new World Bank report “The potential of integration, opportunities in a changing global economy”, the relocation of companies and the green industry can boost economic growth in Latin America and the Caribbean.
Due to its advantages in the production of renewable energy and sustainable inputs
Latin America offers renewable energy that companies seek to be sustainable.
He said that the economies of the region have shown themselves to be relatively resilient in the face of the growing pressure of indebtedness, inflation and global uncertainty.
But new headwinds from falling commodity prices, rising interest rates in developed countries and uncertain recovery in China could again cloud the region’s prospects, the World Bank warned.
However, he noted that to fuel much-needed growth in the region, countries must preserve their hard-earned resilience and take advantage of the unique opportunities offered by global economic trends toward nearshoring and industry. green, according to the report.
The report estimates that regional GDP will grow 1.4% in 2023, a lower rate than anticipated. Rates of 2.4% are expected for 2024 and 2025, too low to achieve significant progress in poverty reduction.
“The region has largely recovered from the pandemic crisis, but unfortunately it has returned to the low growth levels of the previous decade,” said Carlos Felipe Jaramillo, World Bank vice president for Latin America and the Caribbean.
“Countries must urgently accelerate inclusive growth, so that everyone benefits from development, and this will require maintaining macroeconomic stability and taking advantage of the opportunities that trade integration offers today.”
According to the report, the region’s overall resilience is the result of hard progress made in macroeconomic management over the past two decades. Preserving this achievement will be paramount.
Photo: ShutterStock
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