The World Bank reported on Wednesday that although the Latin America and Caribbean (LAC) region has achieved substantial economic stabilization in recent decades, growth has now stalled, eroding the progress made.
In its latest report titled “Competition: The Missing Ingredient for Growth?,” the Washington-based financial institution said that the LAC has reached a critical juncture where immediate action is needed to change this trajectory.
The report highlights potential areas for action, emphasizing that leveraging competition policies and institutions is key to any impactful growth strategy.
The World Bank forecasts that regional gross domestic product (GDP) will expand by 1.6 per cent in 2024 and that GDP growth of 2.7 and 2.6 are expected for 2025 and 2026
“These rates are the lowest compared to all other regions in the world, and insufficient to drive prosperity. With social transfers declining and wages not yet rebounding to pre-pandemic figures, many households are under pressure,” the bank said.
World Bank Vice President for Latin America and the Caribbean, Carlos Felipe Jaramillo, said that persistent low growth is not just an economic statistic, it’s a barrier for development.