UN report warns of weaker economic growth in Latin America in 2022

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Santiago (AFP) – Economic growth in Latin America and the Caribbean will be weaker than expected at 1.8% this year due to the war in Ukraine, a UN body said on Wednesday.

In 2021, the region’s gross domestic product (GDP) was 6.2%, and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in January predicted growth of 2.1% for 2022. .

But in a statement on Wednesday, he adjusted the figure down, saying the war has increased inflation, raising financial volatility and costs.

“The economies of Latin America and the Caribbean face a complex conjuncture in 2022 due to the war between Russia and Ukraine, which introduces a new source of uncertainty for the global economy,” he said. he declares.

South American economies are expected to grow by 1.5%, Central America and Mexico by 2.3% and the Caribbean (excluding Guyana) by 4.7%, ECLAC said.

“The war in Ukraine has also caused an increase in the prices of raw materials, mainly fossil fuels, some metals, food and fertilizers,” he added.

Along with rising costs due to supply chain disruptions, rising prices have caused inflation in some countries to reach historic highs in 2022.

Last month, regional inflation was estimated at 7.5% and many central banks forecast high and sustained inflation for the rest of the year.

As growth slows, the agency also warned of higher unemployment rates.

For Brazil, the region’s largest economy, ECLAC predicts growth of 0.4% for 2022.

His projection for Mexico was 1.7%, for Argentina 3.0%, Venezuela 5.0%, Colombia 4.8%, Chile 1.5%, Peru 2 .5% and Costa Rica 3.7%.

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