Only one Latin American nation is positioned as the one that will have the best growth, surpassing Brazil and Mexico. Photo: composition LR/Comex Peru
2024 began in the midst of a possible global economic crisis, which could worsen due to complex situations such as the war in the Middle East and the increase in fuel prices. However, after the first five months of this year have ended, the Organization for Economic Cooperation and Development (OECD) expects that this panorama will improve and benefit some countries in the world and Latin America.
According to the most recent report of the OECDthe “main seven Latin American economies” will grow by 1.4% by 2024 and 2.4% in 2025. The latter will be a period associated with greater growth in external demand, lower inflation, within the target ranges of the central banks.
Which Latin American country will have the best growth in 2024, according to the OECD?
According to an OECD study, Costa Rica will be the only country of Latin America which will have, in 2024, a growth greater than the world average, established at 3.1%. In this sense, the Central American nation will grow 3.6% this year, while a better scenario is expected for 2025 with 3.9%.
This improvement in the internal economy would be reflected thanks to monetary policy, credit expansion and increased household income. On the other hand, they point out that moderate growth in exports is expected in 2024, but that they will gradually increase in 2025 as global economic conditions improve. Likewise, general inflation would rise to 0.4% (year-on-year).
Inflation in Costa Rica remains in constant reduction. Photo: OECD
However, for the OECD economist Alessandro Meravalle, Costa Rica’s sustainable and long-term growth will only be maintained if structural reforms continue to be implemented, especially in the educational field. “A very important reform is education, by expanding the care network and improving the quality of the educational system, more women and young people will be able to join the formal labor market,” he says.
Although employability rates have improved in recent years, they are not the same as pre-pandemic. Photo: OECD
The Latin American countries with the best economic growth by 2024, according to OECD
- Costa Rica (3.6%)
- Peru (2.3%)
- Chile (2.3%)
- Mexico (2.2%)
- Brazil (1.9%)
- Colombia (1.2%)
What is the OECD?
The OECD, or in Spanish OECD (Organization for Economic Cooperation and Development), is an international organization made up of 38 member countries. It was founded in 1961 with the goal of promoting policies that improve the economic and social well-being of people around the world.
Its main mission is to provide a forum where governments can work together to share experiences, coordinate economic policies, analyze data and find solutions to common problems in areas such as economy, trade, education, environment and sustainable development.
The OECD collects data, analyzes public policies and produces reports and recommendations to help governments make informed decisions. It also publishes reports and studies that influence economic and social policies internationally.
