The ECLAC lowered its growth estimate from GDP of Latin America and the Caribbean for this year, from 2.1% to 1.8%, due to inflationary problems, price volatility and the impact of the war in ukraine.
“In the current context where the Ukraine conflict has exacerbated the inflationary problems, increased volatility and financial costs, an average growth of 1.8% is expected for the region,” said this Wednesday in a statement the Economic Commission for Latin America and the Caribbeana technical entity of the UN based in Santiago.
The new estimate is less than the 2.1% that ECLAC had announced last January in Mexico.
By subregions, the economies of South America will grow 1.5%, those of Central America plus Mexico 2.3%, while the Caribbean would grow 4.7% (excluding Guyana).
The war in ukraine also caused an increase in the prices of the basic products (commodities), mainly from the hydrocarbonsSome metals, foodY fertilizersaccording to this entity.
It also warns about cost increases observed due to disruptions in supply chains and the interruptions of maritime transport that have resulted in a boost in the inflation Worldwide.
“Inflationary dynamics in Latin America and the Caribbean have accelerated. As of March 2022, regional inflation is estimated at 7.5%, and many central banks in the region anticipate that inflation will remain high for the remainder of the year” added the note.
ECLAC estimates that Brazil will have an annual economic growth of 0.4%, Mexico 1.7%, Argentina 3%, Venezuela 5%, Colombia 4.8%, Chili 1.5%, Peru 2.5% and Costa Rica 3.7% in 2022.