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Preliminary Overview of the Economies of Latin America and the Caribbean, 2024. Executive summary

Economic development
December 2024|Flagships » Preliminary Overview of the Economies of Latin America and the Caribbean
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Preliminary Overview of the Economies of Latin America and the Caribbean, 2024. Executive summary

Autor institucional: NU. CEPAL Physical Description: 19 pages. Editorial: ECLAC Date: December 2024 ECLAC symbol: LC/PUB.2024/28

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Description

Latin America and the Caribbean is caught in a trap of low capacity for growth, according to the Economic Commission for Latin America and the Caribbean (ECLAC). The region’s economies are projected to expand by 2.2% and 2.4% in 2024 and 2025, respectively. Although these figures are above the 2015–2024 average of 1.0%, they are insufficient to close the gap with the economies of developed countries.

The 2024 and 2025 international context is one of highly uncertain financial and trade conditions and slowing growth for the region’s main trading partners. Domestic macroeconomic policy space remains limited, and while fiscal efforts are focused on avoiding a sharp increase in public debt, the speed and magnitude of monetary policy rate cuts are determined by the depreciation of the region’s currencies.

Overcoming the trap of low capacity for growth requires a massive mobilization of financial resources and a concerted effort to coordinate macroeconomic policies, smooth fluctuations in the economic cycle and implement productive development policies that boost investment and productivity for the economies of the region.

Table of contents

In 2024 and 2025, global economic growth is set to hold steady at 2023 levels, driven largely by emerging economies .-- The world’s major central banks expanded liquidity in 2024, ending the tight monetary cycle .-- The region’s debt issuance on international markets is increasing, but the net transfer of resources abroad is on the rise .-- Economic activity remains low and is increasingly dependent on private consumption .-- Despite continued low job creation, the region’s labour markets are showing modest improvements .-- Fiscal space remains limited in Latin America and the Caribbean .-- Inflation is converging towards target ranges, albeit at a slower pace .-- Falling inflation and rate cuts in the United States have prompted looser monetary policy in the region
.-- Projections and outlook for 2024 and 2025 .-- Policies to overcome the trap of low capacity for growth.

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