According to forecasts by “The Economist”, the economy of the Latin America and Caribbean region will grow 1.2% next year.
In the publication “The World in 2020”, the British magazine estimates that Brazil will grow 2%, Chile 3.4%, Colombia 3.4%, Ecuador 1.2%, Paraguay 3.3%, Peru 3.2%, Uruguay 1.5% and Bolivia 3.9%.
Regarding Argentina, Alberto Fernández’s victory in the presidential elections and the new government’s expected investment in areas such as tourism, agriculture and mining are highlighted.
According to the publication, the Social Security Reform in Brazil reassured international creditors, who should continue to see changes in the labor market, in the regulation of small businesses and in state-owned industry.
With the demonstrations that have taken place in recent months in Chile, President Sebastian Piñera announced a series of measures and reforms, including a referendum where the population will be able to comment on changes to the country’s Constitution.
In Colombia, domestic demand and investments in infrastructure should continue to fuel the economy, with controlled inflation, below the value of economic growth.
Paraguay should benefit from a jump in economic growth, driven by Brazil’s recovery.
In Peru, despite internal political issues, the economy will continue to expand, for the 22nd consecutive year, with inflation forecast at just 2.0%.
In the case of Uruguay, the newly elected president Luis Lacalle Pou will have a majority in Congress, which will allow him to support his economic and fiscal reform agenda.
Finally, the report predicts that a possible departure of President Nicolás Maduro could give rise to a new government in Venezuela, which would most likely adopt an economic stabilization plan based on international financial assistance and carrying out broad reforms in different sectors. In any case, the forecast of economic recession remains, combined with the highest inflation in the world: 678%.
The “Economist” also predicts negative economic growth for Argentina and Cuba.