For neighboring economies, the Fund projected a better performance in 2023 than the local one; and stressed that the situation in China is having “global consequences.”
The International Monetary Fund (IMF) projected that Chile, unlike the main neighboring economies, will not grow in 2023.
Although this year’s expansion improved to 1.7%, the outlook for next year is 0,0%.
In contrast, for Argentina, Brazil, Colombia, Mexico and Peru, it forecast GDP growth of 3.0%, 1.1%, 3.5%, 1.2% and 3.0%, respectively.
Latin America is one of the few regions that saw an improvement in the Fund’s forecast for this year, which now stands at 3%, half a point more, however that of 2023 worsened, the year in which an advance of 2% is calculated, half a point less.
Latin America and the Caribbean will grow 3% this year and 2% in 2023 amid tighter financial conditions, lower global growth, persistent inflation, and increased social tensions due to growing food and energy insecurity. #IMFBlog: https://t.co/F0lmNBid0r pic.twitter.com/H8gQ4O2qmN
— FMI (@FMInoticias) July 27, 2022
On inflationthe Fund was also pessimistic and in this case revised its global forecasts upwards.
The first world economy, USA, suffered an important revision in the forecasts of the Fund that this organization already advanced a few days ago: 2.3% growth for this year and only 1% for the next, 1.4 and 1.3 points less than in its previous estimates .
And the second largest economy in the world, ChinaAccording to the IMF, it will grow 3.3% this year (1.1 points less than previously calculated) and 4.6% next year, half a point less.
For the Fund, the slowdown in the Chinese economy has “global consequences” because the closures, supply problems and the drop in domestic demand are reducing the demand for goods and services from the Asian giant to other countries, which see their economy more resentful for this.