Caribbean and Latin American growth to slow to 1.9% in 2024, says World Bank

BRIDGETOWN — Economic growth across the Caribbean and Latin America is seen slowing to 1.9% this year from 2.1% in 2023 before accelerating again in 2025, according to the World Bank, which warned in a report that the region has so far missed the opportunity for growth brought on by global changes to supply chains.

Public and private investment continue to underwhelm, while the promise of growth opportunities due to near- and friend-shoring has gone unfulfilled, the report said. Key reasons for this remain the high cost of capital, low education levels, subpar infrastructure and social instability, according to the World Bank. “Despite the enthusiasm for nearshoring, foreign direct investment remains below levels of 13 years ago in real terms,” the bank’s report said.

The 1.9% growth estimate figure has accelerated compared with previous estimates of 1.8% in June and 1.6% in April. Yet growth in the region’s two largest economies, Mexico and Brazil, is forecast to slow to 1.7% and 2.8% respectively, down from 2023 expansions of 3.2% and 2.9%. Meanwhile, Argentina and Haiti remain the only two countries in the region where an economic contraction is expected this year – before unevenly rebounding to growth in 2025.