Latin America | Key themes 2022: stagflation risk will test central banks

Latin America’s economy enters the new year on weakened footing. Our 2022 themes revolve around the inherent struggle between supporting a slowing economy versus reining in uncomfortably high inflation. And with central banks not following the same rulebook, the chances of policy mistakes are high.

What you will learn:

We expect Latin American fiscal and monetary policies will tighten significantly in 2022.
The mishandling of inflation remains a key threat to the outlook.
While all central banks look certain to miss their inflation targets this year and next, some are giving as much weight to growth as to inflation in their decisions.

Topics: Forecasts, Emerging markets, Monetary policy, Inflation, Coronavirus, Macro, GDP, Latin America, Recovery, Mexico, Macroeconomics, Economic recovery, Elections, Outlook, Central banks, Colombia, CPI inflation, Brazil, Chile, Omicron