The increase in international prices of various raw Materials might boost the economies of developing countries Latin Americaaccording to an analysis by the Economist Intelligent Unit (EIU).
The group’s analysis unit “The Economist” points out that although the price hike is having an impact on the region, aggravated by the war in Ukraine, there are conditions for this situation to be beneficial for some Latin American nations.
Currently Latin America it is reliant on raw materials to fuel growth, leaving it vulnerable to price shocks and economic boom-and-bust cycles.
But, the EIU estimates that there will be a fiscal and external gain for many countries in Latin America which will imply an increase in investment, which will lead to employment growth and higher consumption.
Although, they warn that the region faces public debt problems, so governments have less room for maneuver to deal with this recent economic crisis.
The unit argues that the countries most vulnerable to the global economic impact of crisis from Ukraine are El Salvador, the Dominican Republic, Nicaragua, Costa Rica and Panama.
These nations, they indicate, are entering crises with relatively high levels of public debt, substantial external imbalances and high inflation, and none is a major exporter of raw Materials.
(With information from the EFE Agency).