Latin America

As global recession risks pick up, Latin America growth forecasts shrink

The World Bank estimates regional growth to reach 2.5 percent this year and 1.9 percent in 2023, a somewhat more negative picture than the one painted in January

growth Recession risks in the U.S. and Europe pick up sharply and change GDP forecasts for Latin America. Photo: Matías Martín Campaya/EFE via Folhapress
Recession risks in the U.S. and Europe pick up sharply and change GDP forecasts for Latin America. Photo: Matías Martín Campaya/EFE via Folhapress

When the pandemic began, Latin America was already on its way to another lost decade, growing at a meager 0.3 percent a year between 2014 and 2019. In the first year of Covid, the region’s economy sank 6.7 percent and barely made it back to the surface in 2021 with a 6.8-percent recovery, according to data from the World Bank and the OECD. 

With the slowdown in the U.S., China, and Europe shifting from a mounting risk to a baseline case in analysts’ calculations — some of them are even talking about the risk of stagflation, a ruinous mix...

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