The durability of the economic recovery in Latin America and the Caribbean, as elsewhere, depends on controlling the pandemic. Outbreaks of COVID-19, including those caused by new variants of the virus, continue to pose a downside risk even in countries with high vaccination rates,” the document states.
Taken from Listín Diario
The World Bank lowered its global growth projections due to the spread of COVID-19 variants, inflation, debt, and inequality, factors that have intensified uncertainty about the global economic recovery.
“Global growth is expected to slow markedly, from 5.5% in 2021 to 4.1% in 2022 and to 3.2% in 2023, as pent-up demand dissipates and the level of fiscal and monetary support around the world decreases,” the organization said in a statement released Tuesday.
For Latin America and the Caribbean, regional growth is expected to slow to 2.6% in 2022 and 2.7% in 2023, according to the World Bank's Global Economic Prospects report.
In the case of the Dominican Republic, the organization predicts that growth will be 5.0% in 2022 and 2023.
“The durability of the economic recovery in Latin America and the Caribbean, as elsewhere, depends on controlling the pandemic. COVID-19 outbreaks, including those caused by new variants of the virus, continue to pose a downside risk even in countries with high vaccination rates,” the document states.
It adds that a sudden deterioration in investor sentiment, especially in an environment of high inflation and substantial public debt, could lead to difficulties in servicing the debt and episodes of capital outflows.
It also indicates that economic disruptions related to extreme weather events, partly linked to climate change, and other natural disasters represent a significant risk not only to regional growth prospects, but also to the integrity and livelihoods of people living in the region.
