Latin America and the Caribbean will face an increase in poverty and food insecurity in 2023, and trust in governments will remain low as long as corruption remains high and the rich do not pay their fair share in taxes, the International Monetary Fund said on Wednesday.
The slowdown in economic growth and high inflation in Latin America they could intensify social unrest, as “many people in the region will see their standard of living fall this year,” IMF officials wrote in a blog post.
“Finding common ground to carry out sensible economic reforms in an environment of significant social tensions will be an uphill battle,” they wrote.
Nigel Chalk, deputy director of the IMF’s Western Hemisphere Department and one of the blog’s authors, said the IMF is focused on what the public sector can do to ensure that citizens feel that their governments are working to raise living standards. while tackling corruption.
“We have long advocated for progressive tax reform in the region,” Chalk told Reuters. “I think it’s very important that the rich pay what they have to pay in taxes, and the rich companies too.”
He added that this did not necessarily mean higher taxes, but better ways to curb tax evasion and legal loopholes.
The IMF said Monday that growth in Latin America and the Caribbean is expected to slow further to 1.8% this year after falling to 3.9% in 2022 from 7% in 2021. expansion will accelerate again in 2024, although at a still slow rate of 2.1%.
According to the IMF, rising interest rates and falling commodity prices affected growth in the region last year and 2023 could bring a slowdown in the United States and the euro zone, key trading partners.
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