One of the main risks for Latin American countries is the financial hardening of advanced economies such as the United States, Ilan Goldfajn, director of the Western Hemisphere Department of the International Monetary Fund (IMF).
“The first risk is the pandemic because we really don’t know if we are going to have a new wave. Second, we have the risks of less funding because countries have raised their interest rates, which creates challenges when rates are raised globally. Now you have the toughest financial conditions when you have the legacy of spending from the pandemic,” added the Brazilian economist.
It is worth emphasizing that the United States Federal Reserve it has already announced that it will adjust its reference interest rate (currently in a range of 0 to 0.25%).
In addition, another risk is related to the impact that global conflicts may generate, such as the current tension between Russia and Ukraine, a scenario that may affect the oil market.
reduce gaps
On the other hand, Goldfajn pointed out that it is urgent to resolve inequalities in the region, a task that can be carried out with full respect for the fiscal stability of the countries, considering that societies have demanded to address these problems as soon as possible.
“Inclusive consolidation is a way of preserving fiscal responsibility and at the same time attending to what societies have demanded and chosen (…) Work on social issues is compatible with solving fiscal problems and increasing the growth potential of Latin America” , he emphasized.
Source: Larepublica
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