The International Monetary Fund lifted previous 2021 growth forecasts for Latin America and the Caribbean to 5,8%, a significant advance over the last estimate from April, boosted particularly because of the good performances of the Brazilian and Mexican economies.
The IMF Global Economic Outlook increased 1,2 percentage points its forecast for the region while maintaining without changes its estimate for the world growth at 6% .
Last April the 2021 forecast for Brazil and Mexico was 3,7% and 5% respectively, but now has increased them to 5,3% and 6,3%, given the improved performances of both countries during the first quarter of the year, and in Mexico particularly because of the positive prospects from its neighbor and main trade partner the United States. For Brazil foreign trade is the great booster.
IMF also lifted growth prospects for the region in 2022, with a slight increase of a tenth of percentage point to 3,2%. Mexico's forecast for next year is 4,2%, up 1,2 percentage points from its original estimate, benefitting from the upturn of the US economy. Brazil on the other hand is expected to lose some ground and its GDP is forecasted to grow 1,9%.
The preliminary IMF report concentrates on the region's two largest economies Brazil and Mexico, with no details, so far, of the other Latin American countries. Overall the Outlook underlines that the gap between rich and countries and those of medium and low income will continue to increase because of the different vaccination campaigns and the strong stimuli measures implemented by the most powerful.