IMF: Latin America to recover from crisis ahead of rich countries

Source: Xinhua | 05-07-2009 10:18

RIO DE JANEIRO, May 6 (Xinhua) -- The international financial crisis takes its toll on Latin America, but the region will manage to recover from the turmoil faster than the rich countries, the International Monetary Fund (IMF) said on Wednesday.

In its latest Regional Economic Outlook -- Western Hemisphere Report, the IMF said that the Latin American countries were more prepared to face the crisis, due to previous adoption of certain economic policies.

The Latin American countries strengthened their fiscal conditions and solidified their financial systems and regulations, which led to the reduction of inflation rate projections and helped increase the credibility of the political base, it said in the report.

The IMF referred to Brazil, Colombia, Mexico and Peru as examples which have managed to build more solid systems and rescue their economic credibility.

The actions have made the impact of the crisis less severe in those countries, which in turn will promise better perspectives in the region, the IMF said.

Latin America's economic development is expected to be resumed this year, before the developed countries' recovery.

For 2009, the IMF projected a contraction of 1.5 percent in the Latin American economy, which is better than the 3.8 percent shrink projected for the developed countries.

The IMF projected a 1.5 percent growth in Latin America for 2010.

Editor:Zhang Yun