Latin America’s seven largest economies to grow 1.4% this year, OECD forecasts
2024.05.02 05:11
By Marion Giraldo
MEXICO CITY (Reuters) – Latin America’s highest-income countries, with the exception of Argentina, will grow moderately this year and next because external demand will remain weak, the Organisation for Economic Co-operation and Development (OECD) forecast on Thursday.
In its semiannual outlook for the region, the Paris-based organization said the seven main Latin American economies will grow on average by 1.4% this year and 2.4% next.
The seven countries – Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru – grew 1.9% last year.
“In 2025, the outlook for the region has a more positive tone, associated with greater growth in external demand, and lower inflation, already within the target ranges of central banks,” the OECD report said.
But it added, “Global geopolitical tensions and volatility in global financial markets could have a negative impact on the region.”
Climate disasters could impact agricultural production in a key region for grain supplies, the report said, pushing up prices of raw materials, many of which are exported.
Costa Rica is forecast to grow at the fastest rate this year, at 3.6%, followed by Chile and Peru at 2.3%. Brazil and Mexico, the region’s largest and second-largest economies, are forecast to grow 1.9% and 2.2%, respectively, followed by Colombia with growth at 1.2%.
Argentina is forecast to contract by 3.3% as a result of hyperinflation and severe fiscal adjustments. By 2025, the OECD forecasts a growth rate of 2.7%.
