[Economics] Will it happen in Colombia? Left-wing governments of Chile and Argentina will cause their economies to fall in 2023, says ECLAC

[Draeno]

 

The left has come to power in the region with a clear message of change. However, it has not been possible to consolidate and the citizens of the countries where this ideology rules are concerned, since the economic problems continue to rise.

This is the case with Argentina and Chile, countries governed by presidents Alberto Fernández and Gabriel Boric, respectively, and which, according to the Economic Commission for Latin America and the Caribbean (Cepal), will be the only countries in South America whose economies will perform negatively. in the year 2023.

Specifically, the international organization forecasts that the Gross Domestic Product (GDP) in Argentina will contract by 2%, compared to the growth of 1% that it estimated last December 2022.

ECLAC is not the only organization that recently reduced growth prospects for Argentina. The International Monetary Fund (IMF) did the same last week, cutting the expansion of the Argentine economy from 2 to 0.2% for this year. In turn, the World Bank contemplates that the country will not grow in 2023.

For its part, in the previous revision of projections, ECLAC already calculated that the Chilean economy would end the year 2023 with a drop in GDP. For Chile, the agency improved its forecast, estimating a fall of only 0.3% of GDP.

This upward revision coincides in time with the improvement in the performance of the Chilean economy that is also anticipated by the country's central bank. Specifically, the body chaired by Rosanna Costa estimates a fall of 0.5% in the most negative scenario or an expansion of 0.5% in the most positive.

For the region as a whole, ECLAC has estimated that GDP will grow by 1.2% in 2023, one tenth less than what was forecast last December.

This worsening of their projections is due to the complex external scenario facing the Latin American economies this year, marked by low growth in economic activity and world trade, as well as the persistence of high monetary policy rates.

 

https://www.semana.com/mundo/articulo/pasara-en-colombia-gobiernos-de-izquierda-de-chile-y-argentina-haran-caer-su-economia-en-2023-afirma-la-cepal/202321/