According to ECLAC’s annual report, the scant increase in the Gross Domestic Product (GDP) in 2024 will be observed in all subregions and in South America it will be 1.5; in Central America and Mexico 2.2 and the Caribbean, not including Guyana, 2.6.

In the entire area only Haiti and Argentina will register a contraction this year, ECLAC warned.

At the regional level, the modest increase in GDP continues to be conditioned by an uncertain international context, marked by high inflation and high interest rates worldwide.

The United Nations agency warns that the situation could be aggravated by a possible exacerbation of geopolitical and trade tensions, as well as by the worsening effects of climate change.

Although inflation has recently been on a downward trend, it will remain at high levels of 5.9 percent in 2024 and 4.4 percent in 2025.

In addition to the analysis of the macroeconomic situation, the study examines in its second part the impact of low growth on the dynamics of employment and informal employment.

It also analyzes the consequences of an intensification of climate shocks on job creation.

Latin America and the Caribbean is very vulnerable to the impact of global warming and most countries are located in geographical areas highly exposed to the occurrence of extreme weather events.

At the same time, the region is characterized by its high level of dependence on economic activities that could be affected by these problems, such as agriculture, mining and tourism.

If adaptation and mitigation policies are not implemented, meteorological phenomena can have very negative effects on economic growth and employment, ECLAC warned.

The Economic Survey of Latin America and the Caribbean, 2024: Low-growth trap, climate change and employment dynamics, was released at a press conference by ECLAC’s executive secretary, José Manuel Salazar-Xirinachs.

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