IMF cuts expansion estimate for Latin America this year How much will Peru grow?

The economy of Latin America and the Caribbean will grow 1.6% this year, 0.2 percentage points less than anticipated in January, in a context marked by subjacent inflation “stubborn”, indicated this Tuesday the IMF.

In updating its economic outlook, the International Monetary Fund also forecasts that Brazil’s economy will expand 0.9% (-0.3 percentage points compared to the January forecast) and Mexico’s 1.8% (+0.1 pp).

It also provides for Argentina 0.2%, Bolivia 1.8%, Colombia 1%, Ecuador 2.9%, Paraguay 4.5%, Peru 2.4%, Uruguay 2% and Venezuela 5%. Central America will grow 3.8% and the Caribbean 9.9%.

Chile’s economy, meanwhile, will contract this year by 1%, says the Fund.

For 2024, the Fund anticipates a regional growth of 2.2%.

Inflation will continue to be high in 2023, around 7% worldwide, but what worries the financial institution the most is underlying inflation, which excludes more volatile elements such as food and energy.

His forecasts, which he will complete on Thursday with details about the region, come a few days after the World Bank estimated that the regional GDP will grow 1.4% in 2023 and 2.4% in 2024, too little. “to achieve significant progress in poverty reduction”.

Source: AFP