Low growth rates across the region are expected to be a major challenge for Latin America in 2023. According to a report by Deloitte, the region rebounded from a pandemic-induced economic contraction in 2021. However, the region is still facing significant challenges when it comes to economic growth. The report notes that the region’s growth rate is expected to be lower than the global average in 2023. This is due to a variety of factors, including political instability, corruption, and structural challenges.
Inflation and the spectre of stagflation are also expected to be major issues in Latin America in 2023. Inflation has fallen from its peak in 2022 but remains high, raising concerns about stagflation. Stagflation is a situation where inflation and economic stagnation occur at the same time. This can be a difficult situation for businesses because it can lead to higher costs and lower demand for their products or services.
Structural challenges are another major issue facing Latin America in 2023. These challenges will continue to weigh on growth prospects and make it difficult for businesses to succeed in the region. Some of the structural challenges facing Latin America include poor infrastructure, limited access to credit, and a lack of skilled labor. These challenges can make it difficult for businesses to operate efficiently and can limit their ability to grow and expand.