Costa Rica Business News – The International Monetary Fund cut its economic growth forecast for the Latin America and the Caribbean region, in part due to the area’s terrible infrastructure and lower commodity prices.
This global lender revised their original forecasts down by 0.3 percentage point since their July update.
In its current World Economic Outlook report, they said that these emerging markets were about to see decreased growth because of “less supportive external conditions and domestic supply-side constraints.”
Their suggestions focus on improving sustainability of growth as well as reducing domestic financial volatility. The example in the region is Brazil, according to the IMF. Brazil’s projected growth remains the same as in July. They saw a 7.5 percent GDP growth in 2009 and have been continually expanding little by little.
The country in the “lowest gear” in the region is Argentina,where “activity continues to be constrained by foreign exchange and other administrative controls.”
The organization says that “external current account deficits are projected to widen further in 2013 as commodity prices have softened and domestic demand continues to outpace output.” Slower growth in China could further reduce demand.
