With additional reporting from João Montenegro, Mike Place and James Young
Upward pressure on global commodity prices resulting from the Ukraine crisis will generate some economic tailwinds for Latin America – but also bring negative consequences for the region.
Among them is further rises in inflation, British research firm Capital Economics tells BNamericas.
Latin America was already grappling with an uptick in inflation, among drivers a strengthening of commodity and import prices, unfavorable forex fluctuations and released pent-up demand.
The region is expected to see inflation of over 10% this year, against a backdrop of a return to pre-pandemic GDP growth levels, with the UN’s regional economic commission Eclac recently forecasting a deceleration to 2.1% this year from 6.2% in 2021.
“The short point is that the recent rally in commodity prices will help external sectors across Latin America, but this…
