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
