![]() ![]() The result: The region grew by 6.8% in 2021, 3 with GDP of half of its countries surpassing prepandemic levels. The region benefited from a surge in commodity prices driven by strong demand when the global economy reopened. In 2021, Latam rebounded from a pandemic-induced economic contraction. Our forecasts for individual Latam countries can be found in the appendix. In this article, we take a closer look at these issues and try to answer two questions: Is Latam heading toward a recession? And how likely is Latam to face a debt crisis? We will also discuss the potential growth opportunities on the horizon for Latam economies that could help the region withstand a global economic downturn. ![]() The latter could in fact worsen the region’s inflation woes. Moreover, aggressive monetary tightening in advanced economies to rein in inflation could spell trouble for Latam, mainly through the effects of higher borrowing costs and a more expensive US dollar. Consequently, we at Econosignal (the economics unit at Deloitte Spanish-Latin America) have revised our forecast for the region’s growth in 2023 from 2.0% to 1.7%. Such weakening economic activity is bound to dampen growth prospects in Latin America (Latam).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |