Research Briefing | Dec 13, 2021

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

Ipad Frame - Latin-America-Key-themes-2022-stagflation-risk-will-test-central-banks

Latin America’s economy enters the new year on a 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.
Back to Resource Hub

Related Services

construction site

Post

Firms must brace for higher ‘new normal’ construction material prices

New research by Oxford Economics suggests that construction materials prices have shifted permanently higher due to the shocks of the past couple of years. Project managers and investors should anticipate costs being at least 15-20% higher in 2024 and onwards than in 2021.

Find Out More

Post

New Activity Trackers suggest momentum is waning

After a choppy first quarter of GDP data, our novel Activity Trackers (which incorporate proprietary daily sentiment data from Penta) suggest that economic momentum in EM Asia is on a softer trend in Q2 (at least outside of China) supporting our view of easing underlying inflationary pressures and diminishing appetite for further rate hikes.

Find Out More