Global growth forecast remains at 2.4% for this year.
The World Bank estimates that the Dominican Republic closed 2023 with economic growth of 2.5% and forecasts a 5.1% growth for 2024, one of the highest percentages foreseen for each Latin American and the Caribbean country.
In its latest Global Economic Outlook report the bank suggests a gradual recovery for the region, with growth forecast to rise to 2.3% in 2024 and 2.5% in 2025.
“While the lingering effects of the previous monetary tightening will continue to influence growth in the near term, its impact is expected to diminish. As inflation slows, central banks are expected to reduce interest rates, easing obstacles to investment growth,” indicates the World Bank in its outlook for the region in 2024.
In the long term, the report notes that the region faces persistent challenges. “Economic growth potential is declining amid a slowdown in total factor productivity and an aging population”.
As for risks, it indicates that “the modest regional expansion is fraught with risks.” It adds that escalating geopolitical tensions, especially in the Middle East, could disrupt energy markets and cause oil prices to rise.
China inflation and growth
Regarding inflation, the report points out that persistent underlying inflation in advanced economies could be accompanied by persistently high global interest rates, which would limit monetary and fiscal policies in the region.
It anticipates that a larger-than-expected slowdown in China’s growth could have notable spillover effects on external demand, impacting the region’s commodity exports.
Source:
