The climate for business in Latin America fell 1.6 points in the last three months, weighed down by the worsening of macroeconomic conditions and the political environment in the region, according to a report released by the Brazilian center Getulio Vargas Foundation (FGV).
The Economic Climate Indicator (ICE) fell in the region from 80.6 points to 70 points in the passage from the fourth quarter of 2021 to the first of 2022, mainly driven by the “worsening assessments of the current situation” in Latin American countries.
According to the FGV, which consults 149 specialists from 15 countries every quarter to calculate its indicator, the index registered increases in the period only in Argentina and Uruguay.
Already in the comparison of the forecasts for the growth of the Gross Domestic Product (GDP) of the countries of the region for this 2022 compared to last October, there were improvements only in Colombia, Bolivia and Paraguay.
Brazil, for its part, highlights “among the countries with the worst GDP growth projections”, which currently stands at a timid 0.30%, according to the calculations of economists consulted by the Central Bank.
“The worsening of domestic macroeconomic conditions and the political environment were some of the main factors for the cities’ weaker forecasts this quarter”, the institution pointed out in the report.
Source: Gestion
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