development assistance also contribute to the outlook.” William Maloney, chief economist for Latin America and the Caribbean at the World Bank, said access to technology and exploiting scale economies “dictate that trade and FDI (foreign direct investment) remain essential to accelerating growth in Latin America and the Caribbean, even in uncertain times. “Diversifying trade destinations, expanding service exports, and pursuing potential nearshoring niches offer opportunities, but will require increasing both productivity and nimbleness,” he said. “This, in turn, requires progress on long overdue reforms behind the border in business environment, human capital, and innovation,” Maloney added. Despite some progress in controlling inflation, the World Bank said fiscal deficits remain a pressing concern, with the debt-to- GDP (gross domestic product) ratio expected to reach 63.3 percent in 2024, up from 59.4 percent in 2019. The bank said the fast-evolving global economic environment adds further pressure, as persistent inflation in advanced economies may delay interest rate cuts and limit monetary policy options. “Concerns around global trade restrictions create uncertainty around nearshoring and market access, contributing to a more cautious economic and business environment,” the World Bank said. “Slowing growth in China, and cuts in overseas 8 BUSINESS VIEW CARIBBEAN VOLUME 12, ISSUE 04
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