Latin America and the Caribbean will grow 2.6% on average between 2018 and 2020, below global growth, due to low levels of investment and productivity, the Inter-American Development Bank (IDB) said today when presenting its macroeconomic report.
Although the Latin American region grows again after two years of recession, it does so at a much lower pace than other regions, such as Asia and emerging Europe, which project growth of 6.5% and 3.7%, respectively in that same period.
The Latin American expansion, however, is unequal: it is expected that the Southern Cone (excluding Brazil) will present a growth rate of 2.9% in 2018-2020, that Mexico will grow 2.7% in that triennium; and that Brazil does it 2%.
“The good news is that most of the region has grown again,” said José Juan Ruiz, chief economist of the IDB, when he presented the first part of the report in the framework of the annual assembly of the organization that is being held these days. in Mendoza (Argentina).
Ruiz pointed out that “growth is not fast enough to satisfy the desires of the growing middle class” and stressed that “the biggest challenge is to increase the levels and efficiency of investments so that the region becomes more productive, grows in a faster and more stable and safeguard the region from external shocks. ”
Hundreds of economic and political leaders from the region attend the annual meeting of the Pan-American financial institution, which will last until this Sunday, March 25.