Colombia will have the faster growth among the main Latin American economies over the next two years, while Brazil lags behind, according to English financial services company Barclays.
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Colombia’s economy would expand a 6.3% in 2022 and 3.5% in 2023, driven by a strong domestic demand and a potential increase in oil production, Barclays explained in an investigation.
On the other hand, Brazil’s growth would slow to 0.6% next year and 1.5% in 2023, due to tighter fiscal monetary conditions and the uncertainty surrounding the 2022 elections, the economists of the English signature.
For the region as a whole, the rebound is likely to continue after the 2020 coronavirus crisis. This growth would be driven by the increase in vaccination against the virus, higher public spending and higher commodity prices, Barclay’s added.
It also forecasts annual regional growth of 6.8% this year and 2.4% in 2022.
(See: Consumer confidence rose in October: it was -1.3%).
Like Brazil, Peru It would also underperform, as it is hampered by political uncertainty, according to Barclays.
The bank anticipates that the region’s monetary authorities will continue raising interest rates during the first half of next year to curb rising inflation.
(See: Colombia’s GDP in the third quarter pushes upward forecasts).
Finally, Barclays research says that elections in some countries scheduled for 2021 (Chile) and 2022 (Colombia, for example) would put the economic prospects at risk for a “turn to populism across the continent“.
(See: The products that Colombia imported the most during September).
BLOOMBERG
