Chile, Perú and Colombia take the lead in LAC economic growth

Some economic reports for the Latin American and Caribbean region point out that, by the second half of this year 2021, three out of the six major economies have remained steady and even counter the crisis.

Early this year, when the LAC region barely started the second quarter of the period of economic recovery, Chile, Peru and Colombia already yielded high figures and gave momentum to their gross domestic product (GDP), projecting themselves at the forefront of economic growth and development in Latin America. As the end of 2021 is one month away, these countries have managed to remain top in the ranking, even smashing historical records.

Imports, exports, foreign investment, increasing capital expenditure and consumption, and production and development of their potential sectors were just a few factors that allowed for such results. According to the World Economic Outlook by the International Monetary Fund (IMF), the Chilean market could have the fastest growth rate in 2021, at 11%, followed by Peru (10%), Colombia (7.6%), Argentina (7.5%) and Mexico (6.3%).

For its part, FocusEconomics offers a slight variation in the ranking. Based on its forecast of GDP growth for Latin America, Peru could be in the first place with 9.6%, followed by Chile (7.2%), Argentina (6.3%) and Colombia (6.2%).

In addition, Peru recorded in April 2021 the highest domestic economic growth rate ever at 58.5% on an interannual basis, above 18.2% in March 2021.

Similarly, Chile occupied the first and second places in the forecast. The dephasing of some internal and external restrictions, and the enforcement of expansive tax and monetary policies to lessen the effects of such restrictions on the public and private sectors, loosed the GDP constraints of the previous year.

Colombia, one of the nations with the largest number of positive changes, is among the top positions in all Latin American rankings. Its exports and imports of commodities peaked in the second quarter of 2021.

In a report released last August 2021, ECLAC foresees economic growth in Latin America and the Caribbean in 2021. However, the coronavirus pandemic remains effective and the crisis has accentuated longstanding structural problems in the region, including low investment and productivity, informality, unemployment, inequality and poverty. The ECLAC report notes that renewed investment and employment, particularly in environmentally friendly sectors, are pivotal for a transforming and inclusive recovery.

ECLAC notes its plans to guide investment towards specific sectors able to promote a new style of development and encourage competitiveness, employment and a reduced environmental imprint.