Latin America urged to prioritize growth amid global shocks and investment slowdown

The executive secretary of the UN Economic Commission for Latin America and the Caribbean (CEPAL), José Manuel Salazar‑Xirinachs, warned that governments in the region must give priority to economic growth to cope with increasingly frequent external shocks, including the ongoing war in the Middle East. He noted that the region’s average growth was only 0.9 % from 2014‑2024, projected to reach 2.2 % in 2023, and that higher oil prices and delayed fertilizer price increases could strain fiscal balances and food costs.

A separate analysis highlighted that Latin America continues to attract a modest share of global foreign direct investment—just US $11 of every $100 invested worldwide—while Asia captures about US $40. The region’s low productivity growth (23 % over 35 years versus 50 % in advanced economies) and higher effective tax burdens for companies are identified as key obstacles to investment and job creation. Both pieces call for structural reforms and stronger public‑private cooperation to improve competitiveness.