Latin America GDP Round-Up: Regional Growth To Dampen Due to Inflationary Pressures And Easing US Growth  

 

• Fitch expects that economic growth in Latin America will ease in the latter half of 2022, making it an underperformer compared with other regions.
• Latin America's real GDP growth will only be 3.0% in 2022 and 1.8% in 2023, making it a global underperformer, outpacing only EM Europe among the world’s major regions.
• The economic tailwinds of the post-pandemic recovery will continue to give way to headwinds posed by weak demand in key export markets and persistent inflationary pressures.
• Inflationary pressures will weigh on private consumption in most of the region’s major markets, while the deteriorating US growth outlook will depress exports from and remittance inflows to the region.
• Additionally, elevated political uncertainty will also play a significant role in dampening investment growth throughout the region.

(Source: Fitch Solutions)