IMF forecasts for Latin America: what does he say about Argentina?

The International Monetary Fund (IMF) presented Tuesday in Washington its latest report on "The prospect of the global economy," in which it predicts a slowdown in the global economy and slower than expected growth for the world economy. 39 Latin America and the Caribbean in 2019. as in 2020.

The organization led by Christine Lagarde reduced its growth forecast for Latin America to 1.4% in 2019 and 2.4% in 2020; Respectively 0.6 and 0.1 points lower than the updated estimates of January. In 2018, the Latin American economy, according to the Fund, had risen by 1%.

In its report, the IMF describes certain situations that have contributed to the contraction of the economies and weakened their expansion – some of which are still related to 2018 – and which had an impact in the first half of the year.

"The escalation of trade tensions between the United States and China, the macroeconomic tensions in Argentina and Turkey, the upheavals of the auto industry in Germany, the tightening of credit policies in China and the The growing uncertainty surrounding the policies of many economies has significantly weakened global expansion, "says the report.

Projections in Latin America

The IMF, while ensuring an economic slowdown, showed optimism with some countries in the region. In part because of the "moderate" results of Brazil and Mexico, but mainly because of the "stabilization and financial recovery" expected for Argentina – the third largest economy in the region – and the "financial crisis". Above average growth announced in Bolivia.

Although the agency improved Brazil's outlook for 2020 (2.5% vs. 2.2% in January), this year it reduced its forecast by four-tenths to 2.1%. aujourd & # 39; hui. mainly because of its fiscal imbalance.

Mexico Reduces growth prospects in 2019 from 2.1% in January to 1.6%. For 2020, the IMF forecasts the same downward trend: from 2.2% to 1.9%.

In regards to Argentina, its economy is expected to shrink by 1.2% in 2019 and reach 2.2% in 2020. Similarly, the Fund expects that this year inflation, one of the country's main problems, will increase to 43.7%, but the following year it would be 23.2%.

AT Venezuela, the agency has seen a contraction of 25% in 2019 and an additional 10% in 2020, more than predicted by previous projections. The financial institution has described the situation in the country as "humanitarian crisis" and its situation "considerable burden" for the rest of the economies of the region.

The growth projection for Bolivia It is above the regional average: from 4% this year to 3.9% in 2020.

RT.