ISTANBUL

Economies in the Latin America and Caribbean (LAC) region are expected to grow at the lowest rate among the regions pf the world in 2024, the World Bank said Wednesday. 

The LAC region is forecast to see its gross domestic product expand by 1.6%, followed by 2.7% and 2.6% for 2025 and 2026, respectively.

The World Bank said that although the region has made significant progress in economic stabilization in recent decades, growth has stalled and it is undermining progress.

"Persistent low growth is not just an economic statistic, it's a barrier for development," Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean, said in a statement. "It translates into reduced public services, fewer job opportunities, depressed salaries and higher poverty and inequality. When economies stagnate, the potential of its people is constrained. We must act decisively to help Latin America and the Caribbean break away from this cycle."

Factors behind the low growth figures include low levels of investment and domestic consumption, elevated interest rates and high fiscal deficits, declining commodity prices and uncertainty in the prospects of important partners such as the US, China, Europe and other G7 countries, according to the World Bank.