IMF: what challenges Latin America faces in the post-pandemic

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, warns this Tuesday of the challenges facing Latin American countries, including Argentina, to emerge stronger from the crisis into which the coronavirus pandemic has plunged them and take the opportunity to take the path to sustained growth.

The official, who was the stellar guest of a virtual conference hosted by the Council of the Americas, shared the organization’s concerns about the pandemic’s ultimate impact on health and economic issues around the world and focused on the problems facing Latin America one of the most affected by the current crisis, he said.

Without speaking directly of Argentina, Georgieva Note that the exit from the current crisis should have as a central axis balance of tax accounts, after a year in which governments around the world have exponentially increased their spending to contain the impact of Covid-19.

For the official, the expansion of spending, which in most countries has led to large budget deficits – as in Argentina, which will end the year at around 7% of GDP – once we see that the pandemic is receding, States should review the measures adopted and move towards “Credible fiscal consolidation.”

With these fiscal measures alone, countries must move towards a sustainable growth long-term, along with policies that promote private investment, the formalization of employment and the inclusion neglected sectors of society, such as the women’s group, as well as tools to expand access to technology and financial inclusion.

“It’s a crisis like no other, which creates many problems. Latin America is one of the most affected regions, both in terms of health and the economy, ”Georgieva said. He also pointed out that thl 62% of loans in response to the pandemic that triggered the IMF I know intended for land of the region.

Regarding the economy, the official pointed out that the Latin America’s GDP will collapse this year 8% according to IMF estimates, almost double what is expected for the world economy, calculated at 4.4% retracement.

The figures of 2021 also reports on the depth of the blow than Covid-19 in the region: while for the world, the Fund is planning a 5.2% recovery, Latin America will only rebound a 2.6 percent.

For Georgieva, this situation is product of the lack of growth that has dragged on for decades the Latin American region, for which he urged governments to work for sustainable development.

“I am optimistic. We have seen that it is recognized that the crisis is an opportunity and that we can do better in the future. What can we do and emerge in a better way when we enter the crisis?” , He urged.

“How do you avoid another lost decade in the region?” Asked Susan Segal, director of the Council of the Americas. Georgieva stressed that the countries of the region “They must turn to a greener, more digital and fairer economy.”

25% 1990 growth

against 5% of Asia

today it is still 25 in Latin America and Asia 20%

what we can do to address structural deficiencies and improve growth and reduce the gaps between different countries,

and persistent inequalities with a party recovering

untrained workers, women, etc.

you need to invest more in human capital, entrepreneurs, access to technology and also financial inclusion

immigration?

Can the United States Help the Recovery?

The American economy is very important, 45% of Latin American exports go to the United States

48 of investments in Latin America are in the United States

We see a plan for the recovery of the US economy, recovering from the pandemic

stimuli for those who arm

commitment to climate change, jobs in the green nutrition sector and special attention in Central America, to help it fight poverty,

If we see the US economy coming out of the pandemic with more jobs and growth, that’s good for Latin America, and the proximity and growth of markets is good.

in the digital age, work can be done from anywhere in the world

better conditions to be undertaken for investments

work, more digital the field I think this is an advantage for Latin America …

How we avoid another lost decade in Latin America

I will be most optimistic, when you run an organization with a background in the middle of such a crisis, which has hit the major economies so hard, and which has resistance in the financial system, it is stronger

the question is whether the region will embrace the Builgind dependency

Nature as a force for

a greener, digital and more inclusive future

can be a good opportunity

informality of work, high levels, inequalities, how do we get out of it?

The answer is not easy, but if you look at the countries that brought the informal economy to formality, they had better reliable institutions, the egoberments.

eliminate subsidies? make the coal crisis

climate risk