What happened?
He world Bank announced in its semiannual report that the expected growth for Chile is 2.6% for this year, and 2.2% in 2025.
This means a better outlook for the country, since previously the organization had indicated that this year Chile would only expand by 2.0%.
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What did the World Bank say about economic growth for Chile?
In the report, the organization estimates that global economic growth in 2024 should reach 2.6%while for 2025 an increase of 2.6% and 2.7% by 2026.
“A good part (of the growth) is due to the unexpected strength of the US economywhich allows global growth to be sustained,” said the World Bank’s chief economist, Indermit Gill.
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This rise will be supported by strong external demand for pbasic green energy products and interest rate cuts.
Economy in Latin America
The World Bank projects that the economy of Latin America and the Caribbean will grow by 1.8% in 2024, -0.5 pp below the January forecasts, while by 2025 it is expected to reach 2.7%, as interest rates normalize and inflation drops.
“The economic performance of the region will depend on a combination of internal and international factorsand commodity prices and global demand will play a moderate role in this outlook,” the agency notes.
In the region, the best performance for 2024 will be obtained Guyanawith a growth of 34.3%, while the economy of Argentina will contract by 3.5% and that of Haiti 1.8%.
Central America and the Caribbean
According to the agency, Central American growth will weaken as 3.2% in 2024 and will recover by 3.5% in 2025 due to a faster increase in remittances.
Caribbean growth is expected to strengthen to reach 7.1% in 2024 and that in 2025 a 5.7%.
Regarding the growth of the largest economies in the region, Brazil’s growth will moderate to 2% in 2024 and 2.2% in 2025, this given the cuts in the monetary policy rate and the recovery of private consumption and investment.
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