Latin America Economic Forecast

Economic Snapshot for Latin America

October 13, 2021

Regional economy to recovery in 2021

Latin America should recover part of 2020’s pandemic-induced output losses this year, thanks to easing restrictions, rebounding external demand and higher commodity prices. That said, the still-troubling Covid-19 situation and a slow vaccine rollout will limit the pace of recovery. Moreover, weak fiscal positions as well as social and political tensions cloud the outlook.

Inflation to rise 2021

Regional inflation came in at 11.1% in September (August: 10.8%), as price pressures intensified in Brazil, Colombia, Mexico, Paraguay and Peru amid faster price increases for food and transport. After this year’s spike, inflation should moderate in 2022 as monetary policy stances tighten, global supply disruptions ease and energy prices moderate.


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Latin America Economic News

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