In its third and final update of its annual World Economic Outlook report, the international organization made a downward adjustment to its projection for this year. For 2025, it foresees an expansion of 2.7%.
The economy of Latin America and the Caribbean will grow 1.9% this year, according to the third and final update of the annual World Economic Outlook report of the International Monetary Fund (IMF) presented this Tuesday. In this way, the international organization made a downward adjustment to the 2% projected last April.
"With respect to Latin America and the Caribbean, growth has been revised downwards for 2024 in Brazil due to the short-term impact of floods and in Mexico due to moderating demand. Despite this, growth for "Brazil's 2025 forecast (2.1%) has been revised upward due to post-flood reconstruction and favorable structural factors (for example, acceleration in hydrocarbon production)," the IMF report says.
In the case of Argentina, the organization predicts that it will contract 3.5%. This forecast has deteriorated seven tenths compared to the April report. By 2025, the IMF maintains the expectation that GDP will expand by 5%.
GLOBAL GROWTH
The IMF's projected global growth, in line with April 2024 forecasts, is 3.2% in 2024 and 3.3% in 2025.
In this way, for the IMF , the world economy is headed for modest growth in the next two years amid a cooling of activity in the United States, a minimum in Europe and greater consumption and exports in China, but there are plenty of risks for that trajectory
He also warned that momentum in the fight against inflation is slowing, which could further delay a relaxation of interest rates and maintain strong dollar pressure on developing economies.
"Services inflation weighs on disinflation and complicates the normalization of monetary policy. As a result, the risk of higher inflation increases and a picture of higher interest rates for longer amid growing trade tensions and uncertainty. policy mix must be carefully sequenced to achieve price stability and replenish depleted reserves," the IMF explained.
