BY THE IMF
IN LATIN AMERICA'S ECONOMY WILL GROW 4 PERCENT A
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San Salvador Central America and the Dominican Republic will grow at a rate of 2.9 percent of Gross Domestic Product (GDP) 2010, down from 4 percent forecast for the rest of Latin America, according to estimates by the International Monetary Fund (IMF).
chief advisor of the department of the IMF Western Hemisphere, Miguel Savastano, said today at a press conference in San Salvador that one of the factors that explain why the Central American countries will not to grow as much as their continental neighbors is that they are importing raw materials.
During the presentation of the report "Economic Perspectives. Las Americas with the wind in favor, with emphasis on data for Central America and the Dominican Republic, coach multilateral agency said that Latin America will grow at 4 percent.
The report estimates a growth of 4.5 percent and even higher to nations like Mexico, Brazil, Peru, Chile and Colombia, because they are "net exporters of raw materials."
For the Caribbean, where six months ago the IMF forecast a decrease, suggests that this region will be at a 0 percent end of this year.
Savastano noted that last fall estimated average growth in Central America in 2010 from 2.5 percent, but the prospect of recovery from economic crisis forecast was correct because U.S. "Going to grow at a rate greater" and the rapid recovery in Asia.
"Now we are clear that we fall over and recovery time," said Savastano.
For its part, the IMF representative for Central America, Fernando Delgado, told Efe that the recovery "firmly entrenched in the U.S." has major implications on the rest of the continent and especially on Central America for their economic linkages.
Delgado said that growth in Central America affected by the fact that its economy is mainly importing raw materials and has no external support that may have incomes of exporting countries in Latin America.
The report notes that Central American countries' external conditions are less benign "because of his" close relationship with the weakness of employment in advanced economies, "the slow recovery of the tourism sector and" the high prices of imported raw materials " .
The IMF also believes that some of these countries' high debt levels restrict the scope political and economic maneuvering.
Central Savastano recommended that "begins to put on the table" discussion to retract in the face of 2011, fiscal support.
"They need to regain fiscal space, begin to contemplate and plan for reductions to fiscal deficit, "said the expert.
The report adds that the main challenge for Latin American countries importing raw materials is to" ensure fiscal sustainability in a context of low growth, "which" in some cases involves removing a larger portion of fiscal stimulus. "
However, the report proposes an increase of 4.2 percent for Central America in 2011.
chief advisor of the department of the IMF Western Hemisphere, Miguel Savastano, said today at a press conference in San Salvador that one of the factors that explain why the Central American countries will not to grow as much as their continental neighbors is that they are importing raw materials.
During the presentation of the report "Economic Perspectives. Las Americas with the wind in favor, with emphasis on data for Central America and the Dominican Republic, coach multilateral agency said that Latin America will grow at 4 percent.
The report estimates a growth of 4.5 percent and even higher to nations like Mexico, Brazil, Peru, Chile and Colombia, because they are "net exporters of raw materials."
For the Caribbean, where six months ago the IMF forecast a decrease, suggests that this region will be at a 0 percent end of this year.
Savastano noted that last fall estimated average growth in Central America in 2010 from 2.5 percent, but the prospect of recovery from economic crisis forecast was correct because U.S. "Going to grow at a rate greater" and the rapid recovery in Asia.
"Now we are clear that we fall over and recovery time," said Savastano.
For its part, the IMF representative for Central America, Fernando Delgado, told Efe that the recovery "firmly entrenched in the U.S." has major implications on the rest of the continent and especially on Central America for their economic linkages.
Delgado said that growth in Central America affected by the fact that its economy is mainly importing raw materials and has no external support that may have incomes of exporting countries in Latin America.
The report notes that Central American countries' external conditions are less benign "because of his" close relationship with the weakness of employment in advanced economies, "the slow recovery of the tourism sector and" the high prices of imported raw materials " .
The IMF also believes that some of these countries' high debt levels restrict the scope political and economic maneuvering.
Central Savastano recommended that "begins to put on the table" discussion to retract in the face of 2011, fiscal support.
"They need to regain fiscal space, begin to contemplate and plan for reductions to fiscal deficit, "said the expert.
The report adds that the main challenge for Latin American countries importing raw materials is to" ensure fiscal sustainability in a context of low growth, "which" in some cases involves removing a larger portion of fiscal stimulus. "
However, the report proposes an increase of 4.2 percent for Central America in 2011.
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