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Home » IMF Projection: Latin America to Grow 2.5 Percent in 2014

IMF Projection: Latin America to Grow 2.5 Percent in 2014

PanAm Post Staff by PanAm Post Staff
May 5, 2014
in News Brief, South America
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EspañolIn its latest regional report, the International Monetary Fund (IMF) estimates that Latin America will grow by an average of 2.5 percent this year. Alejandro Werner, IMF director for Latin America, told the AFP network on Saturday that the “less difficult” stage of growth this year had already been overcome, and that each country needs to find a way to accelerate its economy.

The report forecasts higher 3-percent economic growth for Latin America in 2015.

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Werner explained that many Latin-American economies are quite close to their maximum production potential and are operating at high levels of labor and capital use. A scenario of high employment in several countries will hinder further expansion opportunities: “growth now becomes more difficult because more investment is needed,” he said.

To address the instability of capital flows, Werner said that despite this being out of local economies’ direct control, each country must design policies to help reduce its impact. He stressed the role of education and infrastructure.

“Latin America has very low levels of performance in education — in all countries. It’s a key issue, and the region has plenty of work to do to improve their education systems.” As for infrastructure, most countries did not invest enough and therefore this sector has not grown on par with the rest of the economy, he said.

Source: La Prensa de Honduras.

PanAm Post Staff

PanAm Post Staff

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