MercoPress. South Atlantic News Agency
IMF warns Latin America about changing times and calls for fiscal prudence
“The subsidies are very costly and distort economic activity,” Iakova asserted The International Monetary Fund (IMF) has suggested that Argentina could benefit from cutting public spending destined for subsidies on energy costs, stating that such policies are “very costly and distort economic activity.”
The organization also recommended prudent fiscal policies in Latin America, as well as staying attentive to financial vulnerabilities and encouraging growth through social spending at a time when growth has spluttered in the region.
The chief of Regional Studies in the Southern Hemisphere Department, Dora Iakova, made clear her opinion of local policies during an event organized in Spain by the Areces Foundation, ”Economic perspectives - The Americas (April 2014): growing challenges“.
”[The subsidies] are very costly and distort economic activity,” Iakova asserted, citing the cases of Bolivia, Ecuador, Argentina and Venezuela where the policy is active.
The IMF's Western Hemisphere director Alejandro Werner also addressed the convention, predicting a sharp deceleration of growth in the region with an average of 2.5% in 2014 - the lowest in the last decade.
The official, however, did highlight the effects of financial, fiscal and monetary stability in the region, but also cautioned about the end of 'a comfortable decade'.
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Read all commentsbut also cautioned about the end of 'a comfortable decade'
May 13th, 2014 - 07:13 pm 0If the IMF thought the last decade was comfortable,
she should tell that to the poor people that have suffered under CFKs policies,
they may have a different opinion.
How about the IMF tell North America to live within their means too!
May 13th, 2014 - 08:16 pm 0http://www.usdebtclock.org/
Its a lost cause to recomend the Kretina and Kicillof anything.
May 13th, 2014 - 08:27 pm 0Kicillof believes that monetary emision doesn't create inflation, just like Marco del Pont said when she was president of the Central Bank.
And when you think it cant get any worse, it always does.
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