Latin American economies with signs of recovery in 2021

The results of the five largest economies in Latin America were 3.2 percent above the pre-pandemic level in 2021, according to the OECD Economic Tracker.

This mechanism of the Organization for Economic Cooperation and Development, OECD, specified that it was a notable recovery, after a sharp drop at the time of greatest impact of Covid-19 in March 2020 with closures, quarantines and impacts on health.

Such performance, the report specified, meant an upward exit led by Brazil, Chile, Colombia, Argentina and Mexico.

This behavior was supported by an improvement in the external environment, especially in trade, remittances and tourism, and above all by the acceleration of vaccination plans despite the successive waves of Covid-19, which did not hide a great macroeconomic impact, said the OECD.

For its part, the Economic Commission for Latin America and the Caribbean (ECLAC) placed the region’s growth at 6.2 percent at the end of last year, while it estimated for the current large asymmetries between countries and a slowdown encouraged by the uncertainty.

In its preliminary balance report for 2021, the agency raised its calculation of gross domestic product (GDP) for 2021 after its estimate of 5.9 made last August, but lowered its forecast for 2022, which was previously 2.9 and now it went to 2.1 percent.

In addition, the increase in 2021 came after a historic drop of 6.8 percent in 2020, the highest contraction in 125 years, so it would be necessary to worry if such a performance is sustainable, in the opinion of the ECLAC executive secretary Alicia Barcena.