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 has said.
In 2021, the region’s gross domestic product (GDP) growth was 6.2%, and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) predicted January growth of 2.1% for 2022.
But in an April 27 statement, he adjusted the figure down, saying the war has increased inflation, increasing financial volatility and costs.
South American economies are expected to grow by 1.5%, Central America and Mexico by 2.3% and the Caribbean 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%.