Uruguay growth estimate has been downed for 2012 while prices will be higher, according to the latest IMF World Economic Outlook released on Tuesday. The economy is set to grow 3.5% down from 4.2% while prices will climb to 7.4% compared to the 6.5% estimate of the previous WEO last September.
The International Monetary Fund will make a compulsory review of Argentina’s economy because of the country’s refusal to allow the multilateral organization to examine its finances since 2006, the Buenos Aires media reported on Wednesday quoting IMF sources.
Housing busts and recessions are more severe and last for at least five years when they follow a big run-up in household debt, according to a study released by the International Monetary Fund. For that matter, the IMF has urged governments to consider “bold” interventions to reduce household debt levels and stimulate growth.
IMF Managing Director Christine Lagarde said the world economy is still in recession and the recovery remains fragile as she warned that, although some progress has been made, the global economic situation is not ideal yet. “We should not delude ourselves into a false sense of security,” she alerted.
The International Monetary Fund (IMF) will close its Buenos Aires office in protest to Domestic Trade Secretary Guillermo Moreno’s decision to accuse the organization in court, urging it to explain how it calculates Argentina’s inflation rate, sources said.
In a surprise move the IMF has decided to close its office in Buenos Aires and Argentine issues will be managed and formally addressed from Peru, according to a report from La Nacion, quoting IMF sources.
Argentina must solve the controversy over the measurement of inflation which has significant economic and political costs, said Eugenio Diaz-Bonilla the Inter American Development Bank, IADB, director for Argentina and Haiti.
Uruguay's economy is poised to expand 4% to 4.5% this year, a moderate slowdown from the growth of just over 6% seen in 2011, the president of the central bank Mario Bergara told reporters during an IMF conference held in Punta del Este.
Brazil urged the World Bank on Wednesday to give proper consideration to developing country candidates to replace outgoing president Robert Zoellick and not just go with an American.
Economic growth in China could drop by half this year in the event of a sharp recession in Europe, the IMF predicted on Monday in a report that underscored the importance of global trade to the world's second largest economy.