Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Rough road ahead for Latam and Caribbean economies, says IMF

EconomyFeb 08, 2021 11:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks at the Global Women's Forum in Dubai

By Rodrigo Campos

NEW YORK (Reuters) - Latin American and Caribbean economic activity will not return to pre-pandemic levels of output until 2023 and GDP per capita will catch up only in 2025, later than other parts of the world, the International Monetary Fund (IMF) said on Monday.

Among contributing factors, the Fund listed a failure to contain new COVID-19 infections, the imposition of new coronavirus lockdowns and changes in people’s behavior.

"The pandemic’s resurgence towards the end of the year threatens to thwart an uneven recovery and add to the steep social and human costs," the IMF's economists said in a blog post.

The IMF said a weak rebound in labor markets would cause more permanent social damage while changes in international investor sentiment "would put pressure on countries with fiscal and external vulnerabilities."

Last week the IMF's managing director, Kristalina Georgieva, said that rising debt in the region was not the fund's main concern.

"What we're urging in Latin America is, please concentrate on the reforms that would bring more vibrancy to growth," she said.

The fund on Monday praised countries' commitment to containing the COVID-19 pandemic, saying that "additional fiscal support would create the conditions for a faster recovery".

The most recent IMF projections forecast GDP across Latin America and the Caribbean to grow by 4.1% in 2021 and 2.9% in 2022. Peru is expected to achieve among the strongest rebounds in the region, with its economy projected to grow by 9% this year and 5.2% in 2022.

"We forecast that the region will go back to its pre-pandemic levels of output only in 2023 and GDP per capita in 2025, later than other parts of the world," the IMF wrote.

"The crisis had a disproportionately large impact on employment, with losses concentrated among women, young, informal and less-educated workers, with consequences for social indicators."

Rough road ahead for Latam and Caribbean economies, says IMF
 

Related Articles

Five signs of a rebounding economy from U.S. CPI
Five signs of a rebounding economy from U.S. CPI By Reuters - Apr 13, 2021

(Reuters) - U.S. consumers footed notably higher prices in March with headline inflation accelerating by the fastest in more than eight years, Labor Department data out Tuesday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
milena villa escobar
milena villa escobar Feb 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why is his cause of death listed as coronavirus. When the man had been battling cancer for years
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email