During this Monday’s edition of the World Economic Forum in Davos, a group of economists, bankers, and decision-makers from major global companies presented a report in which they say Latin America and the Caribbean has the “most difficult perspectives” in terms of inflation for 2022.
According to these experts, as well as being the most vulnerable region to this year’s global price increases, Latin America and the Caribbean will suffer from a decrease in real-term salaries, higher food insecurity levels, and an increase in interest rates in the coming months — all this amid a persistent economic slowdown.
In addition to the economic hangover from two years of the pandemic, Latin America is also experiencing the economic side effects of the war in Ukraine. Recently, The Brazilian Report took a dive into how the European war has been impacting fuel prices, with street protests popping up across the continent.
The research also suggests that Latin American economies will average 2.5 percent growth this year – a 0.1-percentage point increase compared with the last forecast, but still a timid outlook for a region that is resuming normal life and productivity levels. Latin America faces a region-wide scenario of a “perfect storm of volatility and uncertainty,” the report states.