According to the entity, “Latin America and the Caribbean (LAC) has grown by 3.6% in 2022, where the solid expansion in the first half of the year was driven mainly by consumption, supported by the recovery of labor markets.”
However, he added, “activity weakened late last year as slowing global growth and tightening financial conditions began to take effect, with inflation rising in 2022, reaching multi-decade highs in many countries.” “.
“The slowdown reflects the efforts of the monetary authorities to control inflation, and the secondary effects of a weak global outlook. Slow growth in the United States and China is expected to reduce demand for exports, while rising US interest rates are likely. maintain tight financial conditions“, it was indicated in the new report of the body based in Washington.
In this sense, the slow global growth is expected to weigh on the prices of raw materials, weakening the terms of South America.
The risks for Argentina
For Argentina in particular, the effect of domestic inflation and external factors (“external headwings”) would influence the country’s growth, projected at 2%, according to the World Bank.
The entity also stated that the plans to carry out the expansion of the Néstor Kirchner gas pipeline “would benefit fiscally and Argentina’s current account, thanks to the drop in energy imports.”
However, he indicated that “The context is highly challenging given the need to reduce inflation from levels above 80%, and to let the peso depreciate and reform energy subsidies.”
Finally, he indicated that the consequences of the war between Russia and Ukraine will continue to have an impact in the world in 2023 and “it is estimated that world growth will fall to 1.7%, below the 3% expected six months ago,” the Bank concluded. World.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
