Irtra
Barceló Solymar
Agexport
Cubasol
Servicios Médicos Cubanos
Tigo
Herbalife
Instituto Hondureño de Turismo
blackanddecker
Nestle
CUN-HAV Enjoy Travel Group
INOR
Walmart
Intecap
Los Portales
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Cervecería Centroamericana S.A.
Realidad Turística
AVA Resorts
Grupo Hotelero Islazul
MAD-HAV Enjoy Travel Group

Latin America To Grow 2.7% In 2022 Amid Complex Economic Outlook

Date:

Share:

blackanddecker
Nestle
Cervecería Centroamericana S.A.
INOR
Instituto Hondureño de Turismo
Herbalife
Irtra
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Realidad Turística
Intecap
Los Portales
Servicios Médicos Cubanos
AVA Resorts
Grupo Hotelero Islazul

The complicated web of external factors adds to the lack of investment that has limited Latin American and Caribbean economic progress for decades.

Slower trade growth, the appreciation of the dollar and the tightening of global financial conditions are some of the factors that will affect the economic recovery of the region’s countries, the Economic Commission for Latin America, and the Caribbean (ECLAC) warned on Tuesday, forecasting average growth of 2.7% for the region in 2022.

At the press conference to present its Economic Survey 2022, held in Santiago, Chile, ECLAC updated its grey growth projections for the sub-regions in the current year: South America, 2.6% compared to 6.9% in 2021; the group formed by Central America and Mexico, 2.5% compared to 5.7% the previous year; and the Caribbean – the only sub-region that will grow more than in 2021 – 4.7%, excluding Guyana, compared to 4.0% last year.

ECLAC clarified that these forecasts are averages that hide many national realities and recalled the high heterogeneity of the countries in the region.

“This year, 16 countries in the region, i.e., almost half, will not have recovered the GDP level they had before the pandemic,” stressed Daniel Titelman, director of ECLAC’s Economic Development Division.

Titelman also indicated that the decline in economic activity has slowed the recovery of labour markets, especially for women, whose unemployment this year will reach 11.6 per cent this year, up from 9.5 per cent in 2021.

Crises exacerbated by war in Ukraine

The ECLAC report explains the low growth and increase in global inflation as the result of a series of crises exacerbated by the war in Ukraine, which has caused geopolitical tensions, lower global economic growth, reduced food availability and increases in energy prices which, in turn, have boosted the inflation that was caused by the impact of the COVID-19 pandemic.

The interim executive secretary of the Commission pointed out that this situation is compounded by the fall in investment and growing social demands, posing major challenges for macroeconomic policy, which must reconcile measures to boost recovery with policies aimed at controlling inflation and making public finances sustainable.

“This cumulative sum of events requires rethinking the economic side,” said Mario Cimoli, adding that macroeconomic policy coordination is needed to support the acceleration of growth, investment, poverty reduction and inequality, while at the same time tackling inflationary dynamics.

Inflation, which has reached a regional average of 8.4 per cent, has led central banks to raise interest rates and reduce monetary aggregates to control it. However, monetary policy alone can lead to recession, Cimoli warned.

Lack of investment

In this regard, the report emphasized that beyond the dynamics of the economic cycle, the low growth of investment over the last three decades has become a structural constraint to development, which is why it is crucial to reactivate the dynamics of investment for sustainable and inclusive growth.

“Investment is the bridge between the short and medium term and is essential to address climate change,” says the text.

The study states that between 1951 and 1979, investment grew by an average of 5.9% per year, while between 1990 and 2021 this figure reached only 2.9% per year.

In this context, ECLAC urges to increase investment in Latin America and the Caribbean, stressing that in 2021 it was at the lowest levels compared to other regions.

It argues that this requires greater coordination between fiscal, monetary and exchange rate policy and the use of the set of tools available to the authorities so as not to subordinate growth and investment to anti-inflationary policy.

Moreover, macroeconomic efforts should be complemented by industrial, trade, social and care economy policies, it adds.

ECLAC considers that, while a significant part of the financing to increase investment must come from domestic resource mobilization, international cooperation is very important in the process. “For this reason, official development assistance and financing from global financial institutions and development banks must be significantly increased,” it says.

“If investment does not increase, employment will not increase, and informality and inequality will not be reduced. We need investment that generates quality jobs. All the measures taken will be a palliative if investment does not increase,” Cimoli warned. (https://atalayar.com/en/content/latin-america-grow-27-2022-amid-complex-economic-outlook)

Walmart
Grupo Hotelero Islazul
Cervecería Centroamericana S.A.
Instituto Hondureño de Turismo
Irtra
AVA Resorts
Barceló Solymar
Agexport
INOR
Servicios Médicos Cubanos
CUN-HAV Enjoy Travel Group
Tigo
blackanddecker
Intecap
MAD-HAV Enjoy Travel Group
Realidad Turística
Nestle
Herbalife
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Los Portales
Cubasol
Henkel Latinoamerica
Cubacel
Hotel Holiday Inn Guatemala
Havanatur
Hotel Barcelo Solymar
Maggi - GLUTEN-FREE
Barcelo Guatemala City
Tigo
Revista Colombiana de Turismo Passport
AirEuropa
Intecap
Irtra

Subscribe to our magazine

━ more like this

Pole Dancing in Israel: A New Dimension with BlueDance.co.il

In recent years, pole dancing has experienced a remarkable transformation, shifting from a misunderstood niche to a popular activity combining fitness, self-expression, and empowerment....

A New Luxury Hotel Just Opened on An Idyllic Beach in Cancun, Mexico — And We Were the First to Stay

Waldorf Astoria Cancun opened to the public on Nov. 1, the brand's first new build in Mexico, with two waterfront pools and a fantastic...

Pan American Health Organization Launches Interactive Dashboard on Avian Influenza in The Americas

To monitor cases of avian influenza A (H5N1) in the Americas, the Pan American Health Organization (PAHO) launched an interactive dashboard on the web...

This North East African Country Welcomes Over 15.7 Million Tourists Last Year and An Addition 40,000 New Hotel Rooms are in Pipeline

Estimated reading time: 3 minutes In a year marked by global uncertainties and regional geopolitical challenges, Egypt’s tourism sector achieved an impressive milestone, welcoming a...

Nicaragua Presents Its New Interoceanic Canal Route to China and Seeks to Compete with Panama

Estimated reading time: 8 minutes With a length of 445 kilometers, in a second attempt, the Nicaraguan president, Daniel Ortega, presents China with a new...
Havanatur
Barcelo Guatemala City
Irtra
Hotel Barcelo Solymar
AirEuropa
Maggi - GLUTEN-FREE
Cubacel
Intecap
Revista Colombiana de Turismo Passport
Hotel Holiday Inn Guatemala
Henkel Latinoamerica

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Cubasol
Walmart
Cervecería Centroamericana S.A.
blackanddecker
Los Portales
Irtra
Nestle
Intecap
Servicios Médicos Cubanos
Barceló Solymar
Agexport
Instituto Hondureño de Turismo
Grupo Hotelero Islazul
Herbalife
MAD-HAV Enjoy Travel Group
AVA Resorts
Realidad Turística
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Tigo
INOR