Latin American economies expected to contract in 2009

According to the April 2009 World Economic Outlook issued by IMF, the Latin American region will suffer GDP contraction of 1.5 % in 2009. The region grew by 4.2 % in 2008.

Mexico will be the worst hit with a contraction of 3.7%, while Brazil´s GDP will reduce by 1.3% and that of Argentina by 1.5%.

Bucking the trend, Peru will see a GDP growth of 3.5%, followed by Uruguay with 1.3% and Central America by 1.1%.

Average inflation of the region in 2009 is forecast to decline to 6.6% from 7.9% in 2008.

The region’s current account deficit will widen to 2.2 percent of gross domestic product in 2009, from about 0.75 percent in 2008.

The IMF predicts the region’s economy will rebound in 2010, expanding 1.6 percent. In 2009, Mexico will see a 3.7 percent contraction in GDP, while Venezuela’s economy will shrink 2.2 percent, the report said.