Latin American countries with the highest economic growth in 2020

Despite everything, in 2020 Latin American countries are expected to have a slight economic growth of 1.8% .

Machinery in a production plant

2020 brought greater economic growth to the Latin American region. / Photo: Pexels

LatinAmerican Post | Moises Campos

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Leer en español: Países de América Latina con mayor crecimiento económico en 2020

According to the projections made by the World Bank for Latin America and the Caribbean, the economic growth prospects will be driven by four countries: Panama, Colombia and Peru.

Latin American countries that will grow in 2020

In the analysis of economic growth carried out by different institutions, such as the World Bank, the International Monetary Fund and ECLAC , the reports, with certain differences, agree that there are countries that will perform better and will be able to reverse the process of economic slowdown. Panama , according to World Bank estimates, will continue its growth rate, going from 3.5% in 2019 to 4.2% in 2020.

It is estimated that for 2021 and 2022 the country will continue with its sustained growth rate in Latin America. The World Bank and ECLAC, together with the Government of the country, estimate that the economic slowdown that began in 2.017 will have its turning point in 2020.

However, Guyana and the Dominican Republic will be the two countries that will surpass Panama in economic growth , estimating that they will grow by 86.7% and 5%, respectively. Below the Central American country are Colombia with 3.6%, Honduras with 3.5% and Peru with 3.2%.

The growth of the Colombian economy will be driven by the infrastructure projects that are planned, which will attract more foreign investment. For its part, the Dominican Republic must improve its fiscal balance, in order to become one of the highest-income countries in Latin America. They should also improve investment in the training of human resources in the technological area and above all, increase transparency in accountability.

Also read: How is coronavirus affecting the structure of supply chains?

In Brazil, growth of 2% is expected, produced by an increase in investor confidence and other fiscal easing measures. In Mexico, growth is expected to be 1.2%, as uncertainty diminishes. Argentina and Venezuela will continue with their process of economic contraction.

As a whole, Latin American and Caribbean countries are expected to grow 1.8%, but these projections risk going downward, due to weak fiscal conditions, the economic slowdown, the pandemic and the tense social situation in some of the countries of the region.

ECLAC tips to improve the economy in 2020

The Economic Commission for Latin America and the Caribbean (ECLAC), recommends to the governments of Latin American countries that to guarantee economic growth in 2020 they must ensure fiscal sustainability, with structural reforms. The reforms must be accompanied by a revaluation of tax expenditures, implemention of new taxes for the digital economy and a reduction in tax evasion.

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