Alexandre Tombini Discusses Latin America’s Resilience Amid Economic Uncertainty
As geopolitical risks continue to loom large, Alexandre Tombini, Head of the Bank for International Settlements (BIS) Americas, sheds light on the resilience and growth of Latin American economies amidst uncertainty. He also delves into the impact of the US tariffs and the role of digital payments in fostering economic inclusion.
The Impact of US Tariffs on Latin American Economies
Geopolitical risks have been a significant concern for some time, but they escalated further in April when the US imposed substantial tariffs on its trading partners. The imposition of these tariffs brought about a significant amount of economic and financial uncertainty for economies in the Americas.
Despite these challenges, Tombini points out that Latin American economies have demonstrated remarkable resilience. Even with the major downward revision in expected growth following the announcement of the tariff measures, these economies have managed to weather the storm.
Building Resilience Amid Economic Uncertainty
The resilience of Latin American economies in the face of these challenges can be attributed to several factors. For one, their ability to adapt to changing economic landscapes and policy environments has been a key driver of their resilience.
Moreover, these economies have also benefited from a robust financial sector that provides a solid foundation for economic stability and growth. This resilience has enabled them to navigate the uncertainties of the global economic landscape effectively.
Fostering Inclusion through Digital Payments
Another topic of discussion was the role of digital payments in fostering economic inclusion. As digital technology continues to evolve, it has become an increasingly important tool for promoting financial inclusion.
By leveraging digital payments, economies can provide access to financial services for a wider range of individuals and businesses, particularly for those who are traditionally underserved by the financial sector. This not only fosters inclusion but also contributes to overall economic growth and stability.
As the head of BIS Americas, Alexandre Tombini’s insights provide valuable context for understanding the resilience and growth of Latin American economies amidst geopolitical and economic uncertainty. Despite the challenges, these economies continue to demonstrate their resilience and capacity for growth, offering lessons for other economies navigating similar uncertainties.
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