IMF presents Latin America’s economic prospects at FGV
The International Monetary Fund (IMF) presented its 2019 Regional Economic Report for Latin America and the Caribbean on November 11 in the auditorium at the FGV´s Brazilian Institute of Economics (FGV IBRE). IMF officials Jorge Roldós, Antonio David, Carlos Eduardo Gonçalves and Guzman Gonzales Torres discussed the region’s economic prospects and recent studies on significant local issues such as structural reforms, the labor market and fiscal sustainability.
According to the document, growth across Latin America and the Caribbean slowed from 1.0% in 2018 to 0.2% in 2019, and the IMF is forecasting a weak recovery to 1.8% in 2020. In addition to external factors such as weak global growth, low commodity prices and volatile capital flows, the region is experiencing political uncertainty in some major countries, and this is expected to remain a hindrance to growth. At the same time, the economic and humanitarian crisis in Venezuela continues to cause large flows of migrants to other countries in the region.
The IMF believes that in this context, the region’s economies will need to rely on internal growth drivers to accelerate their recoveries, involving higher private sector consumption and investment, anchored in renewed consumer and business confidence.
The report also identifies the need for structural reforms, aimed at greater trade and investment openness, promotion of competitiveness and more flexible labor regulations.
The IMF’s complete report is available to read on its website.