MercoPress. South Atlantic News Agency

Latinamerica's structural reforms lagging, says IMF

Latinamerica's economy is going through a positive moment but must move ahead with structural reforms to achieve a greater incorporation into the world market of exports and investments, said Tuesday IMF Managing Director Rodrigo Rato.

Following a conference at the OPEC (Organization of Petroleum Exporting Countries) meeting in Vienna, Mr. Rato pointed out that "macroeconomic policies have improved significantly" in the region.

"Many countries have become (financially) more stable taking advantage of the new international financial conditions to reduce debt and we've seen positive increases in Latinamerican export capacity, not only of commodities".

However Mr. Rato warned that the region still faces "significant challenges as to its incorporation to the world economy". According to IMF statistics Latinamerican share of world exports and international investment "is very limited".

"This is clearly signalling on the one side the need to sustain current macroeconomic policies and on the other, the need to move forward with structural reforms that help thrust domestic economies dynamism" which will help achieve a "clear and stable" situation that makes the region more attractive for domestic and international investment.

Further on Mr Rato encouraged Latinamerican countries to sustain and increase "effective social policies such as those implemented in some countries, Mexico, Brazil, Chile, which are helping to reduce poverty with well designed policies". He also called on the region to "abandon subsidies' policies that are benefiting mainly the higher classes with very considerable fiscal and economic costs".

IMF Managing Director was in Vienna for his conference on the "World's Economy prospects" in the framework of an OPEC sponsored seminar on challenges and opportunities for oil exporting countries in a new energy era. Following the appointment and after meeting the press Mr Rato left for Singapore for the IMF and World Bank's annual assembly