The IDB recommends measures to mitigate the effect of the war

Strengthening export networks, reducing technical inefficiencies in spending and implementing social security reforms are some of the recommendations of the Inter-American Development Bank (IDB) to the governments of Latin America, including Colombia, to mitigate the effects of the war in Ukraine.

In the Latin America and the Caribbean Macroeconomic Report 2022, the organization points out that policies are needed to promote more and more inclusive growth in the region. “The Russian invasion of Ukraine, along with the rise in interest rates, is likely to reduce growth in Latin America and the Caribbean in 2022-2024,” the IDB notes.

Slower growth and higher inflation are expected to push real incomes from poorest households.

He clarifies that the growth scenarios for each country depend on several factors, from their trade links with Russia to the level of its debt.

Russia is an important market for some of the products that Latin America and the Caribbean export, including dairy products, meat and fruit. In addition, it is estimated that almost 20% of the total fertilizer imports into the region come from: Russiaas well as more than 5% of iron and steel imports.

Source: El heraldo