UN Economic Report Projects Sluggish Regional Growth

The United Nations is projecting lacklustre growth in Latin America and the Caribbean in 2024. That’s according to its latest World Economic Situation Report published on Friday.

Chevon Campbell tells us more.

According to the United Nations mid-year update, growth in Latin America and the Caribbean is expected to slow from 2.1 per cent in 2023 to 1.7 per cent in 2024.

However, there’s an anticipated uptick to two-point-four per cent in 2025.

According to the United Nations, regional growth remains lacklustre amid still tight monetary conditions, subdued external demand, and structural vulnerabilities.

However, the report suggests inflation has been declining in most countries due to lower food and energy prices.

Average inflation is projected to decrease from 6.3 per cent in 2023 to 4.3 per cent in 2024. Comparatively, inflation in Jamaica has reached 5.3 per cent as of April 2024.

On the labour front, the United Nations says momentum is being lost in several economies.

The United Nations is hopeful most central banks will ease monetary policy due to diminishing inflationary pressures and slowing domestic demand.

However, it says persistently high interest rates in developed economies may delay further rate cuts across the region.

On the fiscal front, the UN’s report says most economies continue to face major constraints amid elevated levels of debt, high borrowing costs and slower economic growth.

But, Jamaica has seemingly bucked this trend with its debt firmly on the downward trajectory.

As of May 2024, Jamaica’s debt-to-GDP ratio stood at 77 per cent.

It’s anticipated this will further fall below 70 per cent before the end of the fiscal year.