Latin America, Caribbean 2022 poverty seen higher as Ukraine war bites -UN study

Latin America, Caribbean 2022 poverty seen higher as Ukraine war bites -UN study

Abdul Hadi
June 6, 2022

Latin America, Caribbean 2022 poverty seen higher as Ukraine war bites -UN study

Poverty in Latin America and the Dominican Republic will climb to 33% of the population this year, up 0.9 percentage points from 2021.
The region’s economies were experiencing a downturn in growth and trade, as well as the lingering effects of the coronavirus outbreak.
Cepal predicted a large increase in the number of persons in the region who are food insecure.

Poverty in Latin America and the Dominican Republic will climb to 33% of the population this year, up 0.9 percentage points from 2021. According to a research issued by the UN’s Economic Commission for Latin America and the Caribbean, extreme poverty is expected to reach 14.5 percent this year, up 0.7 percentage point from 2021. (Cepal).

Higher fuel prices, as well as fertiliser and wheat supply issues brought on by the Ukraine conflict, have fueled inflation while worsening hunger, casting doubt on the region’s growth prospects, according to the United Nations.

Cepal predicted a large increase in the number of persons in the region who are food insecure.

“These levels are significantly greater than those seen prior to the pandemic, putting the prospect of a quick recovery in jeopardy.”

The United Nations’ arm recently lowered its forecasts for Latin America and the Caribbean’s economic growth in 2022, blaming economic interruptions caused by the Ukraine crisis.

The region, which is largely Spanish and Portuguese-speaking, is expected to increase by 1.8 percent in 2022, down from a previous prediction of 2.1 percent.

Between the end of 2020 and the end of 2021, inflation in Latin America and the Caribbean more than doubled, reaching 6.6 percent. Consumer prices are expected to grow 8.1 percent in the 12-month period ending in April 2022, according to Cepal.

Even before Russia’s invasion of Ukraine in late February, the region’s economies were experiencing a downturn in growth and trade, as well as the lingering effects of the coronavirus outbreak.

According to the research, Latin American countries are experiencing “internal circumstances marked by a substantial slowdown in economic activity, increases in inflation, and a gradual and incomplete recovery of labour markets, which worsens poverty and inequality.”