(Version in Español)
As the European crisis lingers and advanced economies stall, the next six to eighteen months will be challenging for Latin America. Increased global uncertainties may create headwinds for the region—greater stress in the global economy and markets—tailwinds, if the advanced countries’ problems are tackled and economies spring back to life, or volatile gusts—weak growth and continued uncertainty—like we are seeing now.
But it’s not easy to forecast the future of Latin America in these uncertain times, as we discuss in our just-published Regional Economic Outlook for Western Hemisphere. (Here I focus on Latin America, but our report covers the whole region, including North America, Central America, and the Caribbean.)
Today’s global uncertainties are virtually unprecedented. But then again, much of Latin America is stronger today than in past decades. (more…)
Filed under: Economic outlook, Economic research, International Monetary Fund, Latin America | Tagged: commodity prices, current account deficits, financial market turbulence, financial risks, financial system, fiscal consolidation, global financial markets, government budgets, iMFdirect, inflation, International Monetary Fund, liquidity, monetary policy, Regional Economic Outlook: Western Hemisphere | 5 Comments »