At the recent July 2023 meeting of the Political Bureau of the Communist Party of China's Central Committee, they named insufficient domestic demand as one of the key challenges facing its economy today.
Latin American economies continue to recover thanks to the momentum of external and domestic demand. In some countries, both engines are warming up in coordination, while in others, the external one recovered faster. In several countries in the region, fiscal policies were implemented to reactivate domestic demand.
GDP is returning to its pre-pandemic levels thanks to the impulse of the main trading partners of Latin American countries and the price of raw materials, and to the support in monetary transfers to families and companies.
According to IMF estimates, Latin America's GDP will decrease 8.3% in 2020, while South America 8% and the Caribbean Basin 9.9% will be the most affected. Growth in 2021 will be higher in the southern countries than in the Basin, 3.8% and 3% respectively. With the return of international trade, the speed of recovery depends on domestic demand.