Inflation in the countries of Latin America will record figures above the world average in 2023, with a difference of approximately eight percentage points, with 13 %, compared to the 5 % average in the rest of the world, according to the latest report from expectations prepared by FocusEconomics.

Despite the fact that the study shows that inflation began to slow down in the third quarter of this year, the increase in prices will be higher in some regions such as Latin America, Eastern Europe or Sub-Saharan Africa, where it will also exceed 12 %.

Among the reasons for this high inflation, FocusEconomics experts highlight the continuation of the war in Ukraine, the oil production levels of the countries of the Organization of Petroleum Exporting Countries (OPEC) or extreme weather events, the latter being those that are directly affecting the Latin American region.

Regarding economic growth, FocusEconomics forecasts a slowdown in GDP in Latin America, which will increase below the 2.2 % average estimated worldwide in 2023. One of the causes of this low growth is due to increases “aggressive” interest rates by the region’s central banks, which are expected to remain at levels similar to the current ones at the end of next year.

K. Tovar

Click the link to subscribe for free to our news and media group on Telegram: https://t.me/G_ELSUMARIO_News

Source: ElEconomista

La entrada Latin America will face problems with inflation apareció primero en Bitfinance.

The world is facing an increase in inflation as a result of the different monetary expansion programs promoted in 2021 to challenge the global recession caused by the Covid-19 pandemic, which is reflected, according to information from FocusEconomics, particularly in African countries .

It is estimated that by 2022 inflation will increase and in countries such as Angola and Nigeria, projecting a variation in the price index of 19.8% and 13.5% respectively, according to the projections made by some economic analysts and banks. central.

For the Asian continent, the countries that are forecast with the highest inflation rate for 2022 are Pakistan, with 7.3% and Kazakhstan, with a 7% increase in the prices of their products and services.

Other important global economies that attract attention due to the increase in their prices are: Russia, which has a particularly high inflation forecast of 5.4%. While for China a moderate behavior of 2.2% is expected, and the United States reflects a projection of 3.6%, worrisome figures for their respective government representatives who will surely have to apply measures to control the increase in prices.

For its part, the European Central Bank (ECB) also estimates a rebound in the prices of goods and services in the Euro zone for 2022 equivalent to 3.2%. While the so-called core inflation, which includes the prices of energy and fresh food, is projected at 1.9%, which is equivalent to an increase of five tenths compared to that of 2021.

Inflation in South America

In the Latin American context, the Forecasters of FocusEconomics highlight that Venezuela is located with the highest inflation in the world, projecting at 730% for 2022.

The second place is Argentina with a variation of 48.4% in its prices, followed by Brazil with a 4.9% increase in its inflation. It is followed by Chile with a projection of its inflationary index equivalent to 4.2%, while Colombia is in fifth place with an estimate at the end of 2022 of 3.6%.

It is important to note that the forecast for Brazil for next year is quite accelerated since it exceeds the continental average.

M. Rodríguez

With information from specialized media in Economics

La entrada The global inflation outlook for 2022 apareció primero en Bitfinance.