The International Monetary Fund (IMF) warned that the war between Russia and Ukraine will cause prices in food and energy increase in the region of Latin America.
At a general level, the organization emphasized that all economies at the international level will have detrimental consequences due to the war on Ukrainian territory, including a slower economic growth than expected for this 2022, as well as higher inflation.
This Tuesday, the International Monetary Fund announced that, according to its forecasts, due to the increase in the prices registered by raw materials, inflation in the 5 largest economies in Latin America (Brazil, Mexico, Chile, Colombia and Peru) will speed up.
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“High commodity prices are likely to significantly accelerate inflation in Latin America and the Caribbean, which is already facing an average annual rate of 8 percent in five of the largest economies: Brazil, Mexico, Chile, Colombia and Peru. ”, he exposed.
The economists of the organization led by Kristalina Gueorguieva considered that, despite the fact that financial conditions continue to be “relatively favorable” for the nations that make up Latin America, the resurgence of the invasion of Ukraine by Russian troops may begin to make it difficult access to markets, which in turn will cause the central banks of these countries implement tighter monetary policieswhich will harm the growth of these economies.
“Russia and Ukraine are major commodity producers and the disruptions have caused world prices to soar, especially for oil and natural gas. Food costs have skyrocketed with wheat, for which Ukraine and Russia account for 30 percent of world exports, hitting a record high,” the IMF said in a statement.
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Likewise, the specialized organization announced that the war between the two nations of Europe will make the business confidence declineswhile generating greater uncertainty among investors, with the ultimate consequence of capital outflows from emerging markets, such as some of the Latin American economies.
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