The ECLAC on Wednesday estimated that Latin America and the Caribbean will cut its growth rate to 2.1 percent by 2022, after reaching an average of 6.2 percent last year.
Alicia Barcena, executive secretary of the Economic Commission for Latin America and the Caribbean (Sebal), explained that the region is facing a period of great uncertainty, with deepening imbalances and a small increase in gross domestic product (GDP). Trade.
He noted that the recession was caused by huge fluctuations in the capabilities of developed, developing and developing countries to implement social, monetary, health and immunization policies for sustainable recovery from the crisis unleashed by the Govt-19 epidemic.
ECLAC, the largest economy in Brazil, forecasts the lowest growth rate of 0.5 percent this year, followed by Mexico at 2.9 percent, Colombia at 3.7 percent and Chile at 1.9 percent.
Barcelona pointed out that a situation similar to the one proposed in 2022 would cause labor markets not to recover from the blow caused by the health emergency.
“The epidemic has had a very strong impact on the informal, which is expected to increase with catastrophic social consequences,” she added, adding that these are clearly seen in the vulnerabilities of certain sectors of the population, such as women.
However, ECLAC expects slight improvement in poverty and extreme poverty levels, with the first 1.5 percent and the second 0.7 percent declining.
The complex reality of the region in 2022 is due to the evolution of the epidemic, the sharp recession in global development and the stability and uncertainty about the sustainability of low investment, productivity and slow recovery at work in 2022, the UN body said in a statement.
For the sustainability of the social effects of crisis, low financial space, rising inflation and financial imbalances.
The report highlights the fact that lower global growth means lower growth in external trade and world trade, which could have a direct impact on Latin American economies.
With regard to the prices of raw materials, the bulk of the region’s GDP depends on exports, forecasts indicate a decline or, in the best case, a level of 2021, but not a rise.
(Taken from Brenza Latina)