The International Monetary Fund expects the US recovery to help Latin America

The International Monetary Fund (IMF) predicts that the recovery in the United States, the acceleration of the vaccination rate and the reopening of certain sectors, will lead to an economic recovery in Latin America, which in 2021 will grow at a rate of 4.6%.

This was stated yesterday by the Director of the Western Hemisphere at the International Monetary Fund, Alejandro Werner. “We are witnessing a very important dynamic in the US economy, as it expects an advance of 6.4% this year,” Werner said, asking what factors would be important in facing the recovery of Latin America, which suffered a 7-percent contraction. % In 2020.

In this way, Werner agreed with the analysis of the chief economist at the Fund, Gita Gopinath, who confirmed that the Brazilian and Mexican economies would be one of the “main beneficiaries” of the fiscal stimulus package launched by US President Joe Biden.

Despite projected progress this year in Latin America, per capita income in the region will not regain its pre-pandemic level until 2024.

Werner said at the press conference that “per capita income will not return to the level it was before the epidemic until 2024, which will cause accumulated losses of 30% compared to the previous trend of the epidemic,” stressing that the region has suffered from the decline. From the world. “

According to its forecast, in 2021 Latin America will grow by 4.6%, half a point above the IMF’s January forecast.

Argentina has been one of the countries most closely associated with the fund in recent decades, and the institution is now negotiating with it to refinance debt of about $ 44 billion. “From a technical point of view, I don’t see any obstacle to our reaching an agreement,” Werner said.

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The three major economies of Latin America, Brazil, Mexico and Argentina will grow this year at 3.7%, 5% and 5.8%, respectively, according to the International Monetary Fund. Others such as Colombia, Chile and Peru will lead by 5.1%, 6.2% and 8.5%, respectively.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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