However, individual economists see high inflation as a greater threat to growth in the region than the new covid wave.

At the same time, digital transformation could bring much-needed productivity gains to the region.

Growing government services, financed by higher taxes or larger budget deficits, could slow the economic recovery.

Argentina, Brazil and Mexico held back at the G20 summit and COP26. But companies in Latin America are responding with their own initiatives.

Among other things, concessions for trunk roads and port terminals as well as mobile communications licenses will be auctioned.

Only Asia will grow more strongly than Latin America in 2021, according to the IMF forecast. However, due to risks, the outlook for 2022 is more subdued.

Surprisingly, Mexico’s president declared that his country wanted to give new impetus to the region’s integration process. The role model, he said, would be the EU.

Agriculture, but also mining, energy and transport sectors in the region are more and more suffering from the increasingly frequent droughts.

Why are the peso, real and sol so weak, even though at the same time many South American countries are rapidly emerging from pandemic recession?

Good growth forecasts give hope for the region, but political factors, rising inflation or falling commodity prices could cloud the picture.