Latin-American economies poised to rebound, says IMF
Latin-American economies poised to rebound, says IMF
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The International Monetary Fund (IMF), in a report released in mid-May 2017, predicts gross domestic product (GDP) growth will return to the Latin American region in 2017 and strengthen in 2018.
“Economic growth in Latin America and the Caribbean in 2016 was the third-lowest in 30 years—contracting by 1 percent after stagnating in 2015,” the IMF says in a news release announcing its report. “Growth was held back by weak domestic demand from lower commodity prices, ongoing fiscal and external adjustment in some countries and other country-specific domestic factors.
The IMF forecasts GDP growth in the region to expand by 1.1 percent in 2017 and by 2 percent in 2018. “Over the medium term, growth is expected to remain subdued at 2.6 percent,” adds the IMF.
The expected turnaround will be spurred in part by “a modest rebound in commodity prices,” the IMF says. Copper exporter Chile is singled out by the report’s authors, who write, “The modest recovery in commodity prices will provide some relief” to the country. Even with a copper price rebound, “The outlook for Chile remains subdued, [with] growth in 2017 projected at 1.7 percent.”
An exception to the overall regional rebound is likely to be Venezuela, the report’s authors say. “In Venezuela, the economy is expected to remain in a deep recession and on a path to hyperinflation,” says the IMF. “Because there is no sign of a shift in economic policies, real GDP is expected to fall by 7.4 percent in 2017.”
A lessening of turmoil in neighboring Colombia, meanwhile, means that nation may have the opportunity to exceed the regional GDP growth averages, according to the IMF. “The implementation of Colombia’s peace agreement, together with the government’s structural reform agenda, should help support more inclusive growth over the medium term,” says the organization.
In late May 2017, the IMF published a report focusing exclusively on Colombia and its economic growth prospects.
Also in late May, Mexico’s Central Bank revised its GDP growth for forecast for 2017 upward slightly, according to a news item posted by the London-based Financial Times.
The central bank “nudged up its growth estimate for 2017 to between 1.5 and 2.5 percent, compared with a previous target of 1.3 to 2.3 percent,” according to the article. The central bank cites “better than expected first quarter data,” writes the publication.
The banking authority cites inflation and uncertainty over NAFTA (the North American Free Trade Agreement) as concerns. Security and safety in Mexico also remain as issues, with the central bank writing, “It is indispensable to strengthen rule of law and guarantee legal security for all economic agents in order to prevent insecurity and corruption becoming a burden on growth,” according to the Financial Times.
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Source: Recycling Today
Latin-American economies poised to rebound, says IMF
<![CDATA[The International Monetary Fund (IMF), in a report released in mid-May 2017, predicts gross domestic product (GDP) growth will return to the Latin American region in 2017 and strengthen in 2018. “Economic growth in Latin America and the Caribbean in 2016 was the third-lowest in 30 years—contracting by 1 percent after stagnating in 2015,” the IMF says in a news release announcing its report. “Growth was held back by weak domestic demand from lower commodity prices, ongoing fiscal and external adjustment in some countries and other country-specific domestic factors. The IMF forecasts GDP growth in the region to expand by 1.1 percent in 2017 and by 2 percent in 2018. “Over the medium term, growth is expected to remain subdued at 2.6 percent,” adds the IMF. The expected turnaround will be spurred in part by “a modest rebound in commodity prices,” the IMF says. Copper exporter Chile is singled out by the report’s authors, who write, “The modest recovery in commodity prices will provide some relief” to the country. Even with a copper price rebound, “The outlook for Chile remains subdued, [with] growth in 2017 projected at 1.7 percent.” An exception to the overall regional rebound is…