MEXICO CITY, Dec. 31 (Xinhua) -- Latin American and Caribbean countries need to drive domestic growth to overcome economic and social problems poised to alter the political landscape in 2022, a Mexican international observer has said.
While the Latin American and Caribbean region is ending 2021 with good economic growth, next year will be tough with several challenges, said Ignacio Martinez Cortes, an academic at the National Autonomous University of Mexico (UNAM), in an interview with Xinhua.
Martinez expects the regional economy to see an "abrupt drop" of 2.2-2.7 percent in growth, returning to the declining growth rates of the 2010s and raising concern about a new lost decade of development.
"Countries are going to have to seek growth on their own ... they have to strengthen the domestic economies," said the expert.
Countries that took out loans in the past year, including Argentina, Brazil, Colombia and Ecuador, will be under particular pressure as they expect to pay off their debt through taxes, Martinez said.
He recommends countries strive harder towards regional integration to promote recovery and counter falling exports, since international trade did not grow at the expected rate.
"The drop in exports will also impact these economies, regardless of whether they are primary or secondary sector exports," said the academic.
In 2021, Latin America and the Caribbean will have earned 25 percent more income from goods exports compared to 2020, despite the impact of the COVID-19 pandemic, according to projections from the Economic Commission for Latin America and the Caribbean (ECLAC).
ECLAC has forecast 5.9 percent growth for the regional economy in 2021, which will slow down to 2.9 percent in 2022.
To achieve the necessary growth rate to allay social tensions, regional decision-makers must find viable strategies in different areas, including infrastructure, education, healthcare, energy policy and innovation, in addition to tackling new challenges posed by climate change, said Martinez.
Technological advances, he said, will contribute to progress and sustainable development in Latin America and the Caribbean, particularly the expansion of fifth generation mobile technology (5G).
China will play an active role in this area, laying new foundations to promote ties and cooperation, according to Martinez, who is also a member of the Center for Chinese-Mexican Studies of the UNAM.
In 2022, China is expected to consolidate its relationship with Latin America and the Caribbean in three main areas, namely infrastructure cooperation, digital cooperation and healthcare, said the expert.
Recent years have seen development of the region's diplomatic, trade, academic and cultural ties with China, and the two sides may see even closer ties in the near future, he said. Enditem
