The World Bank also noted that coronavirus outbreaks continue to pose a risk even in countries with high vaccination rates.
Latin America It will grow 2.6% in 2022 and 2.7% in 2023, following a very strong recovery of 6.7% last year, and faces significant risks such as a sharp increase in the number of covid-19 cases , tensions in financing and stress related to debt, predicted this Tuesday the World Bank (WB) in its semi-annual report of “Global Economic Outlook.”
For Chile, in particular, it projected a growth of 2.2% in 2022 and 1.8% for next year, alerted regarding the drought at the local level and the risks of covid-19 outbreaks despite the vaccination process.
“The recovery process towards the levels of the Gross Domestic Product (GDP) prior to the pandemic will be uneven by country and in some of them it will take longer to arrive ”, assured the bank.
Along the same lines, he commented that inflation it has increased throughout the region, and in most cases it has exceeded the targets set by the central banks.
“This increase is attributed to the consolidation of demand associated with the economic reopening, to the increased food and energy prices, to the interruptions in the production of electricity related to the weather and, in some countries, to the depreciation of the currency and the strong increases in the money supply “, detailed the World Bank in its report.
Next, he argued that several countries, including Brazil, Chile and Paraguay, “are suffering the worst drought in decades, which makes it necessary to use more expensive fossil fuels to produce the electricity usually generated from hydroelectric power ”.
Finally, the World Bank warned that coronavirus outbreaks remain a risk even in countries with high vaccination rates and that a sudden deterioration in investor attitude might lead to difficulties in coping with debt service and episodes of capital outflows.
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