Growth in Latin America and the Caribbean slowed to 2.1% by 2022

Growth in Latin America and the Caribbean will be 2.1% in 2022, far lower than the 6.2% recorded last year, the United Nations said on Thursday. “Anxiety”. The Economic Commission for Latin America and the Caribbean (ECLAC) has forecast 0.5% growth for Brazil, the region’s largest economy, which is expected to grow by 5% according to the OECD. The GDP of the other two regional engines, Mexico and Argentina, is expected to grow by 2.9% and 2.2%, respectively.

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In detail about the three regions that make up Latin America, ECLAC expects growth of 6.1% for the Caribbean, mainly thanks to the resurgence of tourism, 4.5% for Central America and 1.4% for South America. According to the United Nations, the economic situation is complicated by the uncertainty of the evolution of the Kovit-19 epidemic, low investment, poor productivity performance, slow recovery at work, reduced financial space, growing inflationary pressures and financial imbalances. .

Is investment and productivity “Configuration Issues”, Alicia Barcena, Executive Secretary of ECLAC, explained during a virtual conference organized from Mexico City. In Latin America and the Caribbean, investment as a percentage of GDP “One of the weakest in the last three decades, certainly the weakest in the world”, 19.5%, well below the world average of 26.8%, he pointed out. According to Alicia Barcina, “Epidemic has caused lasting damage to the growth of economies (…) which includes the structural problems that our region experienced before the crisis” Large numbers of informal workers, unemployment and lack of social security.

“Increase in cash”, Especially by immigrants immigrating to the United States, “Support Private Consumption” In the region, especially in Mexico and Central America, he noted. ECLAC is concerned about the rising inflationary pressures recorded in most countries of the region due to rising food and energy prices. “It should continue in 2022”. The Economic Commission makes recommendations to financial authorities “Continue to use a wide range of monetary instruments (…) beyond interest rates to deal with inflationary pressures without compromising efforts to restore growth and employment.”