The Preliminary Overview of the Economies of Latin America and the Caribbean, 2023 shows that economic activity in Latin America and the Caribbean is still on a path of low growth. For 2023, growth in all subregions is expected to be lower than in 2022. In 2024, the growth rate is expected to be lower than in 2023, with GDP growth and job creation slowing further. Importantly, the low growth projected in 2023 and 2024 is not just a temporary problem, but reflects the fall in the trend growth rate of regional GDP.

As noted in this report, the region faces multiple challenges in boosting growth in the short term. The global economy remains sluggish in terms of GDP growth rate and trade. There continues to be limited space for fiscal and monetary policy in the region. Against this backdrop, the report argues that macroeconomic policies are essential to boost and facilitate greater investment and thus build resilience to climate change and strengthen the region’s capacity for growth.