IMF: Lower growth expected for LatAm

The bad financial news just won’t stop for Latin American economies. On the same day that regional stock markets posted heavy losses, an International Monetary Fund (IMF) study came out with some sobering news:

Latin American economies will slow next year as a worldwide slump and recession in the U.S. spur investment outflows and declines in government revenue, the International Monetary Fund said…

“Given what is happening in the rest of the world, our forecast is for growth in Latin America to slow quite noticeably,'' (IMF sub-director for the Western Hemisphere David) Robinson said. “The region is much better prepared than it ever has been in the past to meet these challenges''…

“High food prices remain a threat to poor households in Latin America and “many countries still lack effective social safety nets that adequately reach vulnerable households,'' the fund said in the report.

Despite the grim regional forecast other countries like the U.S. and Pakistan are expected to go through greater economic difficulties. Indeed, the IMF report praised Chile’s government for effectively managing the country’s finances.

So far in trading today Brazil’s stock index continues to plunge, Venezuela may be forced to devalue its currency, and the Mexican peso gained value after the central bank intervened.

Image- washingtonpost.com
Sources- The Latin Americanist, CNNMoney.com, Reuters, Xinhua, Bloomberg, BBC News