The Monetary Policy Committee of the state body expects it to continue being held back by the lower growth of China and the European Union.
He Central Bank of Uruguay (BCU) announced that it foresees a slowdown in the World economy in this year 2024, after his Monetary Policy Committee (Copom) will carry out a general analysis of the current global context and future perspectives.
According to the latest minutes published by Copom this Thursday, it is expected that the Global economy slow even more than during 2023, as the expansions projected for USA and Mexico would not be able to compensate for the lower growth that they will present China and the European Union (EU).
According to Copom, “the global economic environment confirms the direction that has been expected for months”, in which there will be “dynamism” in the economic activity of the United States and a slowdown in the EU and China, despite the fact that the Asian giant exhibit “a slight rebound” after the stimulus measures implemented by his government.
The BCU observes that the global inflation fell more intensely, something that is mainly explained by the decreases in the prices of Petroleumbut that the price slowdown is occurring “slowly” and “particularly in the core component.”
Likewise, they highlighted the fact that the United States Federal Reserve (Fed) decided to maintain interest rates between 5.25% and 5.5%, and that its president, Jerome Powellanticipated that the downward cycle could begin during the first half of the year.
Inflation drops in Brazil and grows in Argentina
At the regional level, the BCU indicated that they expect inflation in Brazil continue to decline, although the expectations of Brazilian agents appear misaligned. On the other hand, they highlighted the fact that the economy of this country showed “less dynamism” during the third quarter of last year, particularly due to lower agricultural growth and the restrictive monetary policies that were carried out.
Refering to Argentinathe state body visualizes a growth in inflation accompanied by a drop in the level of activity, in a scenario where the incoming government proposed a series of structural reforms.
Source: Ambito
