The Economist: Latin America is recovering faster than expected | News | ANDEAN

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We republish this story with the opinions given by The Economist Editor-in-Chief Michael Reid in statements, in which he said that in Peru, Chile and Colombia there are reasons for investors to be concerned. , but a rush to exit would be premature.

Latin America has suffered greatly from the COVID-19 pandemic but, from a macroeconomic standpoint, the region has recovered from last year’s sharp decline faster than expected, according to Michael Reid, senior editor. chief and columnist of The Economist for Latin America.

Economically, he said, China is emerging more strongly, after the COVID-19 pandemic, followed by the United States; with the strongest impacts observed in Europe and Latin America.

Also, with inflation, interest rates Рwhich have been low since 2008 Рcould rise over the medium term, he said at the 2021 investor conference hosted by Cr̩dicorp Capital.

About Latin America

Latin America has suffered very heavily from the COVID-19 pandemic but, from a macroeconomic perspective, the region has recovered from last year’s sharp decline faster than expected.

“By the end of 2021, most countries will recover what they lost, but that does not imply the two years lost in terms of their (gross domestic) product growth and employment,” the columnist explained for the Latin America.

In 2022, he said, Latin America could return to normal, but it is a tragedy because normality before the pandemic was poor and problematic.

Reid explained that with five years of economic stagnation or slower growth, people’s perception has led to narrowing of opportunities and obvious socio-political turmoil, expressed in three forms.

One of these forms has been the victory of opposition candidates (left or right) in most recent elections. This situation has been a dominant trend, he said.

The others concerned the election of communist presidents in Brazil and Mexico, and street protests in various parts (of the region), he added.

According to the editor of The Economist, the pandemic turned these unrest into anger in various countries, so it was relevant to understand the causes of this unrest and anger.

During the first decade and a half of this century, Chile, Colombia and Peru were the most prosperous countries, economically speaking.

However, the economic downturn and shrinking opportunities have led to frustration and made the multidimensional inequality – existing in Latin America and these countries not only in income and wealth, but also in services and treatment of people less tolerant. citizens by state.

Peru

In Peru, the highly polarized campaign and the victory of Pedro Castillo (as President of the Republic) is the culmination of a political collapse that began a long time ago but intensified in the 2016 elections, a he commented.

Reid pointed out that the Peruvian constitution is recent. It was adopted under the government of former President Alberto Fujimori, whose referendum to approve it was freer than that of Chile – under the command of Pinochet.

“I think the changes are less necessary, and I would view with great concern the launch of a constituent process in Peru at this time,” he said.

The editor also noted that in Chile, Colombia and Peru people can vote freely, adding that constitutional rules have been respected so far. Investors have reason to be concerned, but an exit rush would be premature.

(END) MMG / JJN / RMB / MVB

Posted: 23/09/2021


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