Today: November 2, 2024
April 10, 2022
1 min read

Invasion of Ukraine reduces economic growth in Latin America and the Caribbean

Mercado popular en Guatemala. Foto: PAHO/WHO.

The Russian invasion of Ukraine reduces growth expectations for Latin America between 2022 and 2024, the Inter-American Development Bank (IDB) predicted on Friday.

The growth scenarios for each of the countries depend on several factors, from their commercial links with Russia to their level of indebtedness, but in general the IDB expects it to decrease compared to the pre-war scenario.

In the worst case, growth would slow from 2.1% to 1.2% in 2022, would be –0.4% (instead of 2.4%) in 2023, would recover in 2024 to 1, 3% (instead of 2.2%) “to later converge towards long-term growth of around 2.5%,” says the macroeconomic report for Latin America and the Caribbean 2022.

On the fiscal front, the report considers that the war will raise the debt ratio.

Russia is an important market for several of the products that Latin America and the Caribbean exports, such as dairy products and meat (in the Southern Cone, except Brazil) and fruits.

Around 20% of the region’s total fertilizer imports come from Russia, as do more than 5% of total iron and steel imports.

The high price of oil and grains will benefit exporters, while importers, particularly those in Central America and the Caribbean, will suffer higher price increases.

Source link

Latest Posts

They celebrated "Buenos Aires Coffee Day" with a tour of historic bars - Télam
Cum at clita latine. Tation nominavi quo id. An est possit adipiscing, error tation qualisque vel te.

Categories

Abinader greets and smiles with a saleswoman from one of the Inespre stalls.
Previous Story

Abinader sees inflation as the main threat in the DR

Look at the tender photos of the baby carachupas and a newborn sloth that were rescued in Santa Cruz
Next Story

Look at the tender photos of the baby carachupas and a newborn sloth that were rescued in Santa Cruz

Latest from Blog

Foto

Julio Hernández Lópéz: Shipyard

▲ CONSTITUTIONAL SUPREMACY. Alejandro Moreno, leader of the PRI, went up to the presidium to demand that Fernández Noroña not close the debate on constitutional supremacy. Don’t yell at me!replied the Morenista,
Go toTop