LatAm to Recover Faster Thanks to Higher Commodity Prices, IIF Says

The institute is revising up this year’s growth estimates for the region to around 3% from 2%

Corn grows in a field on a farm near Sertanopolis, Parana state, Brazil.
By Maria Eloisa Capurro
October 10, 2022 | 04:36 PM

Bloomberg — Latin American economic growth will be faster than previously expected due to higher commodity prices and stronger recoveries in Mexico and Brazil, according to the Institute for International Finance (IIF).

The institute is revising up this year’s growth estimates for the region to around 3% from 2%, said Martin Castellano, head of Latin American research at the Institute for International Finance.

On monetary policy, Latin America faces “a scenario of high rates for longer,” Castellano said during an interview at IIF’s annual membership meeting in Washington.

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Early interest rate rises by the region’s major central banks prevented significant capital outflows as the US started to hike borrowing costs, Castellano said.

“Central bankers in the region have been proactive, we haven’t seen significant problems in current accounts and the need for financing is under control,” he said.

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