IMF Projects Sluggish Growth of 0.6% for Latin America and the Caribbean

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The International Monetary Fund, IMF, is projecting sluggish growth for Latin America and the Caribbean this year.

According to its latest regional outlook, the Fund says they’re expecting average growth of 0.6% this year.

That’s the slowest regional growth since 2016, however, the Fund is predicting this to rise to over 2%.

According to the IMF, the expected slow growth reflects negative surprises in the first half of 2019.

This includes heightened US – China trade tensions, and somewhat lower global growth.

The Fund says economic prospects in the Caribbean are generally improving, but with substantial variation across countries.

Tourism-dependent economies such as Jamaica are expected to strengthen to around 2% in 2019-20, supported by still strong U.S. Growth —the main market for the Caribbean —and continued reconstruction from the 2017 hurricanes.

However, the fund says the region remains impeded by poor structural reforms, high debt and poor access to finance.