Colombia will have the fastest growth among the major Latin American economies over the next two years, while Brazil lags behind, according to Barclays Plc.
Colombia’s economy will expand 6.3% in 2022 and 3.5% in 2023, driven by strong domestic demand and a potential increase in oil production, Barclays said in a research note published Wednesday.
On the other hand, Brazil’s growth will slow to 0.6% next year and 1.5% in 2023, due to tighter fiscal monetary conditions and uncertainty surrounding next year’s elections, they wrote. Alejandro Arreaza, Néstor Rodríguez, Roberto Secemski and Pilar Tavella, economists of Barclays.
For the region as a whole, the rebound after last year’s crisis is likely to continue, driven by increased immunizations, higher government spending and higher commodity prices, the bank said.
Barclays forecasts regional annual growth of 6.8% this year and 2.4% in 2022. As BrazilPeru will also underperform as it is hampered by political uncertainty, according to Barclays.
The bank anticipates that the region’s monetary authorities will continue to raise interest rates during the first half of next year to curb rising inflation.
Many countries in the region have elections scheduled for this year and next, so growth prospects are at risk due to a “turn to populism across the continent”Says the report.
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