The Inter-American Development Bank, IDB, says Latin America and the Caribbean countries, known as the LAC region, need to rise to the challenge to lower inflation and reduce the public debt burden in 2023.

In its annual macroeconomic report released during the annual Board of Governors meeting in Panama, the IDB said it is also critical for LAC to address the triple challenge of growing social demands, limited fiscal resources, and low productivity and growth.

The bank projects a massive decline in economic output for the region, noting in the report titled Preparing the Macroeconomic Terrain for Renewed Growth, that the baseline scenario sees the region growing by one per cent this year, after better-than-expected growth of 3.9 per cent in 2022.