MEXICO CITY, Jan 11 (Reuters) - Moody's assigned on Wednesday a negative outlook to Latin American and Caribbean sovereign creditworthiness in 2023, citing weak economic growth, high financial costs and sharp consumer price increases.
In a report, Moody's said many regional governments would have to make difficult policy decisions over the next 12 months due to the complex economic environment.
"Latin America's policy agenda will likely continue to focus on providing assistance to households in the short term in the face of soaring food and energy prices," said Moody's analyst Jaime Reusche.
Moody's estimated the region's gross domestic product (GDP) would grow 2.7% in 2023, down from 3.8% in 2022 and 7.1% in 2021. Some Caribbean nations, however, will receive an extra boost from tourism, the agency said.
Debt metrics for most of Latin America should remain largely unchanged from 2022, Moody's said, following "significant volatility" in government finances between 2020 and 2022. (Reporting by Carolina Pulice and Marion Giraldo; Writing by Kylie Madry; Editing by Richard Chang)
