Latam 8 December 22

In the third quarter of the year, GDP grew 11.9% y/y and 4.1% compared with the previous quarter. The most dynamic sectors during that period were “social services” (cinemas, theatres, cultural and sport venues) and hotels and restaurants, both highly affected by the lockdowns. Construction and Industry also had good performances. A slight recovery of real wages combined with the reopening were key factors of the activity rebound. For 2021 we expect a GDP growth of 10%. Next year the economy will moderate its path expanding 3% despite the strong statistical carryover, as there will likely be some adjustments under the program with the IMF.