Latin American Keys is an informative and analytical summary regarding the political and economic situation in the Latin American region. These key takeaways, prepared monthly by ATREVIA´s Analysis and Research team, serve to be a useful tool in understanding the evolution of the political-institutional state of Latin America, a need that the pandemic has further exaggerated.
The new Coronavirus variant has arrived in Latin America. As in the rest of the world, Omicron has increased the number of infections, but it is not leading to a relatively high level of hospitalizations and deaths, especially compared to other phases of the pandemic.
Chile is particularly well prepared to face the new wave, as 92% of the population has received two vaccine doses. It also has a new president, Gabriel Boric, the youngest in its history. Similarly, Colombia will also have a new president this year, with Gustavo Petro leading the polls. The country closes 2021 with a GDP growth of 9.7%, a good figure shared with Peru, which would have grown by 13.2%. However, its president Pedro Castillo is under investigation for alleged acts of corruption
Meanwhile, analysts predict that the Brazilian economy will only grow by 0.28% in 2022 after inflation reached 10.06% in 2021. Argentina is also facing problems in this matter, and inflation could reach 50% this year. However, the country’s most current pressing issue is to reach an agreement with the IMF so as to be able to refinance its debt and attract investment.
On the average table, Ecuador’s GDP grew by 3.55% during the year. Still, measures aimed at further reactivation are being implemented, such as reducing the Tax on Foreign Currency Outflows and an Investment Law to strengthen public-private alliances. Paraguay’s economy is slightly expanding, with a 5% growth rate, but the controversy caused by the alleged mismanagement of funds by the Governor’s Office of the Central Department is still ongoing.
Mexico seems to be the country most affected by the new variant. Several institutions have returned to the semi-remote format, the president has tested positive for the second time, and several federated entities have announced that the return to classes will be virtual or mixed. In contrast, the Dominican Republic’s government has announced that it will not adopt new restrictive measures and projections indicate that GDP will grow by 5.5% this year.
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