Despite a strong rebound from the coronavirus (COVID-19) pandemic, economic growth is expected to slowdown in Latin America and the Caribbean to a projected 2.3 per cent for 2023.

This is coming from the 4.l per cent recorded in 2022, according to the International Monetary Fund October 2023 Regional Economic Outlook for the Western Hemisphere. However, economic growth is expected to steady at 2.3 per cent in 2024.

Anna Ivavanova, deputy chief of the regional studies division in the IMF’s Western Hemisphere Department, who was speaking at the presentation of the findings at the Bank of Jamaica in downtown Kingston, noted that some of the factors that have contributed to the slowdown include a decline in manufacturing, exports, and weakening commodity prices.

“What contributed to the recent decline, of course, is partly due to external conditions and on the left-hand side you can see the contributions of export growth in the region, to various countries and, of course, the U.S [United States] contribution, export growth to the U.S has declined. Also in 2021 there was a contribution from China but, of course, China is slowing particularly due to the real estate developments in the country,” she explained.

Ivavanova underscored that this slowdown in trading partner countries, along with the economic crisis experienced in some Latin American countries, the tightening of financial conditions, and the natural decline following the pandemic, are among the contributing factors to the slowing of growth in the region.

To boost the region’s growth rate, the IMF representative recommends that LAC countries address long-standing structural challenges, adapt to new ones, and enhance social cohesion.

But while the region has seen a slowing of growth, on the upside the IMF Regional Economic Outlook is projecting a decline in inflation in the region to 5.0 per cent, compared to 7.8 per cent in 2022.

This is largely due to a fall in import prices, currency appreciation, among other factors.