With the exception of Panama and Nicaragua, the World Bank report has raised its GDP growth forecast for countries in the Central American region for 2024 and 2025.
By Lionel Ibarra – Revistaeyn.com
World Bank raises economic growth forecasts for most Central American countries for 2024 and 2025
According to the “Wealth Taxes for Equity and Growth” report, Latin America and the Caribbean will grow by 1.9% in 2024, slightly higher than previous estimates, and the region is expected to grow by 2.6% in 2025.
These are; However, the very low rates in all world regions highlight persistent structural barriers.
“The region has made progress in managing inflation and macroeconomic stabilization. This is an important moment to build on these achievements, attract the necessary investments for sustainable development, foster innovation, create human capital, create more and better jobs, and develop the region independently. We are free from this cycle of low growth. We are,” said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.
Regional plan
In the specific case of Central American countries, Report World Bank's Gross Domestic Product (GDP) Costa Rica This year growth of 4% will decrease to 3.5%. Slightly higher than the 3.9% predicted last April.
And then there is GuatemalaIt will grow between 3.7% and 4%, above WB's stated 3%; Honduras 3.5% and 3.4% growth, slightly higher than the 3.4% estimated in April.
GDP El Salvador It will be 2.9% in 2024 and 2.7% in 2025, higher than the previously estimated 2.5%.
On the other hand, the economy of the World Bank report points out Panama 2.4% and 3% growth below the previously estimated 2.5%. Also Nicaragua Its forecast for both years was cut to 3.6% from 3.7% earlier.
The region needs to capitalize on current economic dynamics to accelerate growth. The US Federal Reserve's decision to cut interest rates is expected to bring some relief. Controlling inflation is another positive development, thanks to efficient macroeconomic management by countries in the region.
The report highlights that public and private investment in Latin America and the Caribbean is low and that countries are not taking full advantage of opportunities.
In real terms, foreign direct investment (FDI) is at a lower level than it was 13 years ago, and announcements of new investments have favored other regions. Despite competitive wages compared to China and elsewhere, high capital costs, weak education systems, poor energy and infrastructure, and social instability reduce the region's attractiveness.
