SANTIAGO, April 29 (NNN-XINHUA) — The economies of Latin America and the Caribbean face a “complex” situation due to the conflict between Russia and Ukraine, with average economic growth projected to be 1.8 percent in 2022, a UN agency said.
The conflict in Eastern Europe “negatively” impacts global growth, estimated at 3.3 percent, down by 1 percentage point from the projection prior to the conflict, said the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) in a statement on its latest growth forecasts.
Regarding the Latin American region, lower growth will be accompanied by higher inflation and a slow recovery of employment, according to the agency.
ECLAC said the conflict in Ukraine has exacerbated inflationary pressures, increased volatility and financial costs.
The economies of South America, excluding Guyana, are expected to grow by 1.5 percent and those of Central America plus Mexico by 2.3 percent, while those of the Caribbean are forecast to see a 4.7-percent growth.
According to ECLAC’s projection, the dynamics of world trade could also be negatively impacted by the conflict, leading to a drop in foreign demand from Latin America and the Caribbean. — NNN-XINHUA
