Latin America's Economic Resilience Amid Trade Tensions: IMF Guidance
Nigel Clarke of the IMF urges Latin American countries to uphold prudent fiscal policies amidst rising trade tensions and global uncertainties. He advocates for continued structural reforms and reduced trade barriers, aiming to bolster economic resilience in a region impacted by pandemic-era debt levels.
Latin American countries are advised to maintain prudent fiscal policies to bolster their economies amid escalating trade tensions and global policy uncertainties, according to Nigel Clarke, deputy managing director of the International Monetary Fund. Clarke's remarks were made ahead of his visit to Paraguay, where he plans to launch a regional training program aimed at reinforcing analytical and institutional capacity across the continent.
Clarke noted that despite surviving the COVID-19 pandemic's economic impact better than anticipated, nations such as Brazil, Chile, Colombia, Mexico, Paraguay, Peru, and Uruguay are once again confronting pandemic-level debt difficulties. This situation makes them more vulnerable to market fluctuations, particularly those stemming from the United States, amidst a challenging global growth projection.
In response, Clarke emphasized the need for Latin America and the Caribbean to persist with structural reforms and enhance economic resilience by decreasing trade barriers. Meanwhile, he announced the initiation of an IMF regional training program in Paraguay, aimed at supporting countries with professional development and data updates, with the first course focusing on macroeconomic and fiscal policies.
(With inputs from agencies.)
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