IMF maintains strong growth outlook for Latin America

WASHINGTON: Latin America and the Caribbean will experience strong economic growth of 4.5 percent this year and 4.0 percent next year thanks largely to commodity exports, the IMF said in its annual forecast Tuesday.

The International Monetary Fund slightly decreased its 2011 growth forecast for the region -- down from the 4.6 percent predicted in June -- but maintains a positive outlook, with variations by countries.

The strongest growth is expected in the South American commodity exporters. Argentina is forecast to grow 8 percent this year; Chile 6.5 percent; Paraguay 6.4 percent; Peru 6.2 percent and Uruguay 6.0 percent.

Regional powerhouse Brazil is forecast to grow 3.8 percent, the same as Mexico.

"Much of the region has thus far benefited from strong terms of trade and easy external financing conditions," the IMF said in its report.

"The outlook is still strong, although downside risks have come to the fore and commodity prices will provide less momentum in the future."

Copyright AFP (Agence France-Presse), 2011