Can Latin American Countries Maintain Economic Growth?
Alejandro Werner, head of the International Monetary Fund’s Western Hemisphere operations, warned that Latin American economies have shown signs of weakness, Reuters reports.
Werner discussed revised growth forecasts for the region in 2013, which the IMF lowered to 3 percent from 3.4 percent this May. Some fear that the fund may reduce the forecast once more following its next meeting, which is due to be held in October, according to The Wall Street Journal. Werner pointed to an economic slowdown in the region as the reason for the revised figures, which, aside from 2009, are due to be the lowest that have been seen in the past decade.
Latin American countries did have some cause for celebration when the U.S. Federal Reserve announced that it would not be tapering its policy of quantitative easing. When dollars are cheap, investors flock to emerging economies, including many Latin American nations. Concerns over the possible end of quantitative easing had caused capital to flee from many nations, as well as a marked drop in the value of some currencies.