Latin America proceeds only 1.3% this year, according to IMF – El Colombiano

Latin America proceeds only 1.3% this year, according to IMF – El Colombiano

The high rates of growth in Latin America in the early years of the century is not “sustainable”, said yesterday the head of the International Monetary Fund (IMF) economist, Olivier Blanchard .

The agency in Beijing yesterday presented its new Global Economic Prospects report, Latin America has been reduced its growth forecast to 1.3 percent in 2015, nine tenths less than in October, and to 2.3 percent in 2016, five tenths less.

“It is quite true that we have reduced forecasts for Latin America and the common factor is the drop in commodities,” Blanchard said in presenting the IMF, which places to EU as the only major economy amid global weakness, which, in addition to Latin America, Japan, the euro area and even China also suffer a slowdown in growth.

EU seems finally to consolidate its recovery, according to the IMF, which raised its forecast to 3.6 percent this year and 3.3 percent in the next five and three tenths, respectively, in October.

Latin America, meanwhile, is one of the emerging regions hardest hit by global slowdown. To Blanchard, the effects of lower commodity that began in 2011 are seeing now on the economic projections in the region.

“Countries now are realizing on what part of the growth came really of high commodity “, stressed the economist, who said that” we are learning that high growth in early 2000 is not sustainable, “he said.

The slowdown in Brazil is especially pronounced, projecting a GDP growth of only 0.3 percent for 2015, 1.1 percentage points lower than forecast in October.

“Our forecasts are made based on the second half of 2014 and activity was then quite weak, especially in investment, “he explained, meanwhile, Gian Maria Milesi-Ferretti , deputy director of IMF research.

He stressed that certain situations had not helped, as the uncertainty of the election or the investigation of Petrobras, which affected investor plans.

Milesi-Ferretti also referred to the monetary policy pursued in the country to combat inflationary pressures, and, again, the effects of commodities.