Saturday, November 04, 2006

IMF report on Latin American economies

The November 2006 regional economic outlook report of IMF has positive things to say about the latamerican economies, like the recent reports of other sources. Highlights:

  • robust growth of Latamerican and caribbean economies around 4.75 percent in 2006- making the ongoing expansion as the most vigorous in decades. Growth rate in 2007 projected to be 4.25%.
  • Domestic demand is buyont, driven by public spending, private consumption and investment
  • Inflation in 2006 will average to 5.25% and is likely to decline to 5% in 2007. countries with high inflation in 2006; Argentina 10.9%, venezuela 13.7%, costa Rica 13% and Haiti 14%
  • external current accounts and primary fiscal balance are in surplus, exchange rates flexible and public debts safer
  • Exports booming adding to trade surplus in many countries
  • Reserves reached 300 billion dollars in 2006
  • unemployment and poverty have been declining.
  • IMF's assistance to the region fell dramatically from about 18 billion dollars per year in 2002-3 to just 0.5 billion dollars in 2006. outstanding credit to the region decreased from 48 billion $ in end 2003 to 3.1 billion in july 2006.

Of course, these are subject to the usual risks including growth and interest rates in USA and commodity prices.

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