The world Bank it reduced the growth expectation for Argentina during 2023, which, according to estimates, will be 2%, “after having experienced a growth of 5.2% in 2022, higher than expected”.
So indicated the multilateral organization in his latest report on Global Economic Outlook: Latin America and the Caribbean, which was released this Tuesday. In the document, the world Bank projects that “growth in Latin America will slow down sharply, from 3.6% in 2022 to 1.3% in 2023.”
However, the world Bank He maintained that the region’s economy will recover by 2.4% in 2024. “Global growth is slowing sharply in the face of high inflationhigher interest rates, reduced investment and disruptions caused by Russia’s invasion of Ukraine,” they said.
And they remarked: “Given the fragile economic conditions, any new adverse event could push the world economy into recession. This would mark the first time, in more than 80 years, that two global recessions have occurred in the same decade.”
As for Argentina in particular, he noted: “Argentina’s GDP is forecast to expand by 2% in 2023 and 2024, following stronger-than-expected growth of 5.2% last year.”
He also warned that inflation will have a negative effect on economic growth for the country. In this context, he expressed: “The context is highly challenging given the need to reduce inflation from levels above 80%”.
He also maintained that “the weakening of external demand will affect the growth of exports, key to sustaining a context of surplus while the Government maintains strict controls on foreign trade.”
The benefits of the Vaca Muerta pipeline
Besides, the organism headed by David Malpass explained: “The investments planned to put the Néstor Kirchner gas pipeline into operation should benefit fiscal and current accounts by reducing energy imports.”
“Exposure to cross-border financial spillovers is limited by reliance on official external funding,” he said.
