Friday, 31 January 2014 00:10
THE NEWS
Economic growth in Latin America and the Caribbean is set to pick up in 2014, and growth across the region will be related to Mexico’s economic recovery, International Monetary Fund (IMF) Western Hemisphere Director Alejandro Werner said on Thursday.
“We see a slightly higher growth in 2014 than in 2013 and this … is due to in part to our anticipation of Mexico recovering its growth rate from the last several years,” Werner said.
The IMF raised its growth projections for the region to 3 percent from 1.2 percent several weeks ago, after a deceleration of the economy in 2013 that resulted in 2.6 percent growth.
“It’s an important growth, but the 3 percent growth rate that we anticipated continues being a moderate growth rate,” Werner said, explaining that Mexico’s low growth in 2013 was due to several factors such as a reduction in public spending because of a change in administration during the first semester. He hopes to see this completely turned around.
The other factor he is waiting to see is “the recovery of the United States.”
He said that in the mean-time we will have to see how the structural reforms and the coming secondary regulations will affect growth in Mexico.
Even though he is optimistic Latin America will grow by 3 percent this year, he said that volatility in developed and emerging markets will be an important factor in the coming months.
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