SANTIAGO, Dec. 19 (Xinhua) -- Economies in Latin America and the Caribbean (LAC) are projected to increase by 2.2 percent in 2024 and 2.4 percent in 2025, according to a report released by the Chile-based Economic Commission for Latin America and the Caribbean (ECLAC) on Wednesday.

The annual report, entitled "Preliminary Overview of the Economies of Latin America and the Caribbean 2024," reviewed the region's economic performance over the past year and updated forecasts for the next.

According to the data, the region's average annual growth from 2015 to 2024 was just 1 percent, indicating a stagnant GDP. To break from the trap of low growth capacity, the report outlined the need to boost effectively the mobilization of financial resources and to improve economic resilience.

ECLAC Executive Secretary Jose Manuel Salazar-Xirinachs underscored the importance of enhancing medium- and long-term productive capacity through policies that increase productivity, encourage investment in productive capital, and generate quality jobs.

Daniel Titelman, director of ECLAC's economic development division, noted the region saw a slow recovery in job creation in the post-pandemic era, while economic activity has been largely driven by private consumption, with limited contributions from investment and net exports. LAC's contribution to global economic growth has also declined, while other developing regions have increased their share, he added.

Inflation in the region, which peaked at 8.2 percent in 2022, declined to 3.7 percent in December 2023, and is expected to reach 3.4 percent in 2024, aligning with the inflation targets of many central banks, the report said.

Highlighting fiscal sustainability challenges linked to weak GDP growth, high borrowing costs, and currency fluctuations in the region, ECLAC called for measures to improve public finances, such as increasing tax collection and progressivity, reducing tax evasion, and conducting cost-benefit evaluations of current tax expenditures.

The report also suggested greater regional coordination and proposed identifying high-potential areas for economic stimulation, prioritizing environmental sustainability, advancing science, technology and innovation, accelerating digital transformation, attracting investment, and leveraging global value chains as key strategies for long-term stability and growth. ■