Latin American economy is resilient, but expansion will be weak: IMF

“Inflation is declining and is projected to continue falling in 2024,” said Rodrigo Valdés, director of the IMF's Western Hemisphere Department, in opening remarks for an IMF presentation in Washington.

“Risks to inflation have also become more balanced overall, although they are still tilted to the upside in many cases,” he added.

The statements of Valdés, former Minister of Finance of Chile, occur within the framework of the spring meetings of the IMF together with the World Bank in which the risks to the growth of Europe and China and the fiscal problems for Latin America have been emphasized. which according to the Fund still requires more consolidation.

Among the IMF's messages for the region, Valdés also emphasized the need to bring public debt to more balanced levels through fiscal adjustment and the urgency of boosting the economy to raise the potential for expansion.

The IMF expects Latin American economies to grow an average of 2% in the medium term, a level that is below peers in other regions.

“It will be important for countries to identify reforms with high growth benefits and work hard to generate consensus in order to implement them in a lasting and inclusive manner,” said Valdés.