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XINHUA

The economy of Latin America and the Caribbean will grow by only 2.1 percent in 2022, representing a slowdown compared to 6.2 percent in 2021, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) reported last week.

According to the commission’s projections released on Wednesday, Jan. 12, the economy of the Caribbean region will grow 6.1 percent in 2022, while that of Central America and Mexico will advance 3.3 percent, and that of South America will grow 1.4 percent.

Alicia Barcena, executive secretary of ECLAC, said in a virtual press conference from Mexico City that 2022 will be a “very complex” year for the region, with the deepening of uncertainty and asymmetries between developed and developing countries.

“The region is facing a less favorable external context, a sharp slowdown in growth and less fiscal space, with great inflationary pressures and exchange rate volatility,” Barcena said when presenting the commission’s preliminary assessment.

The region’s slower growth will be partly due to an expected slowdown in global trade in 2022 to a 4.7 percent increase from 10.8 percent in 2021, according to the UN study.

The report also highlighted the continued decline in investment and productivity in the region, a slow recovery of employment due to the pandemic, and an increase in inflationary pressures and financial imbalances.

Commodity prices, however, will stabilize in 2022 after a sharp rise last year, the report predicted.