According to the World Bank, Chile will become the second worst performing country in Latin America and the Caribbean, following Haiti.
The world Bank he revised downwards once more growth prospects for Latin America and the Caribbean for 2023, up to 1.3%, according to its global outlook report published this Tuesday, which highlights the negative outlook for Chile.
The institution had already warned, in a report published in October, that the foreseeable drop in the prices of raw materials starting this year will slow down the growth of the Gross Domestic Product (GDP) of the Latin American economies, highly dependent on their exports.
And for our country, the World Bank projected on that occasion a growth of 1.8% in 2022; and a fall of 0.5% next year.
In this Tuesday’s text, meanwhile, the entity warns that inflation might be more persistent in the region than initially expected.
This might lead to a continued increase in interest rates by central banks, further restricting growth in the near term.
This situation, according to the agency, can hinder the inclusive development of the region.
And in the case of Chile, The body projects a loss of 0.9% of GDP due to the erosion of consumption that will cause a drop in real income, becoming the second worst performing country in Latin America and the Caribbean, following Haiti.
Let us remember that analysts have agreed that 2023 will be a complex year for our country in economic terms, with commerce and construction as the hardest hit sectors.
Something that was reflected in the Monthly Index of Economic Activity (Imacec) for last November, which fell 2.5% compared to the same month of the previous year.
According to the data, the commercial activity presented a decrease of 8.8%, a result where lower sales in supermarkets, specialized clothing, footwear and household equipment stores and large stores stood out.
For Brazil, meanwhile, the World Bank expects the economy to grow by 0.8% this year, weighed down by a restrictive policy of the central bank, necessary, on the other hand, to face inflation.
In Mexico, the agency expects growth of 0.9% in 2023, constrained by high rates, persistent inflation and a reduction in exports.
Argentina, weighed down by its very high inflation, will grow by 2%, according to the World Bank. For the year 2024, however, the agency revised its prospects slightly upwards, to 2.4%.
