Latin American growth this year should stay under the 4% estimated previously at 3.6% since the region is susceptible to the slowing down of the world’s economy and increasing risks of the financial crisis on the Euro zone, according to the IMF World Economic Outlook released Tuesday.
The Euro zone debt crisis is escalating and dragging down the world economy, the International Monetary Fund said on Tuesday, as it sharply cut its outlook for global growth and called for policies to restore confidence.
IMF chief Christine Lagarde urged on Monday European governments to increase their financial firewall to prevent Greece’s troubles from ensnaring bigger countries like Italy and Spain.
The International Monetary Fund is seeking to boost its war chest by 600 billion dollars to help countries reeling from the Euro zone debt crisis, but some nations insist Europe must first do more to support its ailing members, international financial sources said on Wednesday.
Speaking at a press conference from Washington DC on Thursday, IMF acting director of External Relations Gerry Rice said the organization’s directors “will meet in late January or early February to analyze the progress made in Argentina’s statistics”.
Latin American economies face a recession and a credit squeeze if Europe's debt crisis worsens, director of the IMF Western Hemisphere Department Nicolas Eyzaguirre said on Wednesday.
The head of the International Monetary Fund said that the world economy was in danger and urged Europeans to speak with one voice on a debt crisis that has rattled the global financial system.
Britain’s refusal to contribute to the IMF for a Euro zone bailout fund has left the EU short of its 200 billion Euro target. The UK boycott leaves the Euro zone more reliant than ever on major economies such China and on Russia, which are willing to lend more to the IMF.
IMF Managing director Christine Lagarde urged on Monday developing countries to shore up their defences, especially foreign exchange reserves, against a possible European recession next year.
The agreement reached by European countries for deeper economic integration was a step in the right direction but not a complete solution for the Euro zone's debt crisis, International Monetary Fund (IMF) chief economist Olivier Blanchard said.