He International Monetary Fund (IMF) released two key forecasts for Argentina: the projection of inflation and one recession for this year. According to the agency, the price rise will be 120% and the GDP will decrease 2.5%.
This is how he reported it Petya Koeva Brooksdeputy director of the IMF Research Department, at the press conference from Washington to which she had access Ambit.
IMF forecasts for Latin America and the Caribbean
The economy of Latin America and the Caribbean will grow 1.9% this year, 0.3 percentage points more than expected in April, predicted the IMF, which warns of the importance of continuing to lower inflation globally.
This improvement is due to the momentum of the two main Latin American economies: Brazil, whose economy will expand 2.1% (+1.2 percentage points compared to the April forecast) and Mexico (2.6%, +0.8 percentage points), says the IMF in updating its economic outlook.
Brazil will grow more than expected three months ago, due to “the increase in agricultural production in the first quarter of 2023”, which also has a positive impact on the services sector.
In Mexico, the consolidation of the recovery in the services sector and “the effects derived from the resilient demand in the United States”, its main trading partner, have influenced.
The expected growth in the region in 2023 is well below the 3.9% in 2022 due to “the recent moderation” of the post-pandemic expansion and “the decline in commodity prices.”
In 2024, the region’s economy will grow 2.2%, unchanged from previous forecasts.
At a global level, the financial institution insists that the outlook, although better than anticipated, “remains weak from a historical perspective.”
The rise in interest rates to combat inflation “continues to weigh down economic activity,” he says.
The IMF expects global inflation to drop from 8.7% in 2022 to 6.8% in 2023 and 5.2% in 2024, but core inflation (which excludes food and energy prices) will decline “more gradually.”
Source: Ambito
