Latin America sees lowest average growth in five decades: DESA

He UN Department of Economic and Social Affairs (DESA) presented a report noting that global growth will remain at 2.8% by 2025, that is, unchanged from 2024. Additionally, the study highlights that higher economic growth is needed to reduce poverty and advance the Sustainable Development Goals.

During an interview for “Aristegui en Vivo” Sebastian VergaraThe Economic Affairs Officer of the United Nations Department of Economic and Social Affairs (DESA) presented the economic panorama of Mexico and Latin America for 2025, highlighting that the region represents economic recession V comparison with an average of 3.2% observed in the area between 2010 and 2019.

It is highly likely that we will see renewed volatility in financial markets. In this sense, uncertainty is a factor that has a significant impact on developing countries and Latin America.

For Latin Americaslight increase height from 1.9% to 2.5%, mainly due to recovery from Argentinawhich could grow by 4% after several years of recession.

Argentina has had a very severe recession in recent years and this year we forecast it to grow by 4%, which would represent a very important increase in the regional average.

However, Vergara warned that countries such as Mexico And Brazil will face financial recessionwhile Mexico’s growth forecasts will decline from 1.6% in 2024 to 1.3% in 2025 due to contraction domestic consumption already economic uncertainty created policy new government United States.

There are large countries like Mexico and Brazil where we see economic growth slowing by 2025.

Vergara stressed that the lack of growth is structural problem in the region with the lowest average growth in five decades.

This is a decade in which average growth over the past decade is the lowest in the last five decades in the region.

To solve these problems, he emphasized the need tax strategies active and policies that promote innovation and increase public investment. He noted that innovation potential what countries can achieve will help them adapt to changes at the global level.

The UN representative took the opportunity to make called to countries Latinos so that they redouble their efforts in their economic policy And prosecutors in order to move to the side sustainable development goals and improve working conditions and wages in the region.

Watch the full interview:

Source: Aristegui Noticias

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