In the most recent report from the World Bank, entitled “The Potential of Integration: Opportunities in a Changing Global Economy”, the organization specializing in finance predicted that the Colombian economy will grow by 1.1% during 2023. This figure reveals that, while the country’s financial forecasts are lower than the overall growth of Latin America, it still represents progress for Colombia.
However, the projection of 1.1% growth is insufficient to mitigate the effects of poverty and extreme poverty that continue to plague Colombia. “Forecasts call for the same lackluster pace of the past two decades, insufficient to reduce poverty, promote inclusion, and dissipate social tensions,” stated the World Bank.
Lower Growth Projection than the Past Two Decades
This growth projection of 1.1% is 6.4 percentage points lower than that registered in the country during 2022 when the national economy had a growth perspective of 7.5%. The figure presented for this year was also exceeded by the calculations presented during 2021 when financial development in the country reached 11%. These trends do not bode well for the country’s economic future.
Sustainable, Inclusive, and Dynamic Economic Development and Growth in Latin America
The World Bank stated that, for the region to achieve sustainable, inclusive, and dynamic economic development and growth, there must be financial integration among Latin American countries.
Opportunities for Growth
The World Bank also noted that two new opportunities may help underpin growth in the region: the trend towards nearshoring (moving production closer to US and European markets) and the imperative to fight climate change, which gives the region a new comparative advantage in solar, wind, hydroelectric, and natural capital.
Low Growth Forecasts across the Region
Recent figures for the Latin American economies have been less optimistic; for example, Chile, Argentina and Brazil have the lowest forecasts in the continent with -0.7%, 0.0% and 0.8%, respectively.