Panama will grow over 7% in 2014. The champion of economic growth in Latin America. Credit: SaavedraVS. Wikicommons
The International Monetary Fund believes that Latin America’s overall economic performance in 2015 will be better than 2014, but warns that “here is a lot of downside risk to current predictions.
By Joseph A. Mann, Jr.
The International Monetary Fund believes that Latin America’s overall economic performance in 2015 “will be better than 2014,” a top IMF economist said in Miami, but went on to warn that “there is a lot of downside risk” to current predictions.
Latin America’s biggest challenge is that most regional nations have “good macro,” meaning macroeconomic policies, but “bad micro” policies in critical areas, includingweak infrastructure, poor education, serious energy bottlenecks, red tape and bad tax systems, said André Meier, Deputy Division Chief of the Regional Studies Division at the IMF’s Western Hemisphere Department.
In its April 2014, regional economic outlook, the IMF predicted that Latin America and the Caribbean would grow by 3% in 2015, up from 2.5% in 2014.
But Meier made a humorous reference to economic projections at the beginning of his presentation to a conference held by the University of Miami’s Center for Hemispheric Policy: “I trust you know why economists keep making predictions. It’s to make the weathermen look good.”
The outlook for Latin America, he said, is “Cloudy with a chance of rain. But we all know about the record of weather forecasters – not to mention economists.”
Meier noted that ‘The regional growth outlook remains subdued as …
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