ECLAC reduced its estimate for GDP growth in Latin America and the Caribbean for this year, from 2.1% to 1.8%, due to inflationary problems, price volatility and the impact of the war in Ukraine.
“In the current context where the conflict in Ukraine has exacerbated inflationary problems, increased volatility and financial costs, an average growth of 1.8% is expected for the region,” the Economic Commission for Latin America said in a statement on Wednesday. and El Caribe, a UN technical entity based in Santiago.
The new estimate is less than the 2.1% that ECLAC had announced last January in Mexico.
By subregions, the economies of South America will grow 1.5%, those of Central America plus Mexico 2.3%, while the Caribbean will grow 4.7% (excluding Guyana).
The war in Ukraine also caused a rise in commodity prices (commodities), mainly from hydrocarbons, some metals, food, and fertilizers, according to this entity.
It also warns of cost spikes seen from supply chain disruptions and shipping disruptions that have driven inflation globally.
“Inflationary dynamics in Latin America and the Caribbean have accelerated. As of March 2022, regional inflation is estimated at 7.5%, and many central banks in the region anticipate that inflation will remain high for the remainder of the year,” the note added.
ECLAC estimates that Brazil will have an annual economic growth of 0.4%, Mexico 1.7%, Argentina 3%, Venezuela 5%, Colombia 4.8%, Chile 1.5%, Peru 2.5% and Costa Rica 3 .7% in 2022. (I)
Source: Eluniverso
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