BBVA research: Global slowdown will affect Latin America economic growth
The Spanish institution analyzed the factors that cause that the economic activity of the region presents symptoms of growth regression
The BBVA Reasearch group said that the growth slowdown for Latin America between 2019 and 2020 will be due to the global trend.
A report released this week highlights that this year’s projection of Latin America’s gross domestic product (GDP) fell from 2.1% initially calculated to 1.7%, and by 2020 that expectation fell slightly from 2.4%. to 2.3%.
“This reduction is due to the greater difficulties of implementing the necessary adjustments in the region and the worst activity data in recent months, mainly in Argentina, Brazil and Mexico“, the bank explained in the report Latin America Outlook 2Q 2019 presented in Bogotá.
Juan Ruiz, chief economist at BBVA Research in Latin America, indicated that the local economy has been affected by various factors such as the structural moderation that has been generated in China, the uncertainty in Europe and the slowdown of the economy in the United States.
“What we have is a turn of economic policies in these three main areas. In the United States and Europe monetary policies have passed a certain delay in this process of normalization that was already underway”, said Ruiz.
Another reason for the slowdown could be the drop in the prices of raw materials in the region within the international market.
K. Tovar
Source: Bancaynegocios
