Washington.- The economy of Latin America and the Caribbeanwill contract 0.5% this year, the International Monetary Fund (IMF) said Tuesday,but notes a divided region, with the north benefiting from the situation andthe south suffering somewhat from the measure.
The data contained in the report "Perspectives onGlobal Economics" released at the beginning of the joint meeting of theIMF and the World Bank (WB) in Washington, which gathers the economic leadersof the 188 member countries of both institutions this week.
The IMF said although Latin America’s and the Caribbean’s GDPwill contract in 2016 (in 2015 the fall was 0.1%) for the second consecutiveyear, economic growth in 2017 will resume for the entire region at 1.5%.
However in 2016 the fall in prices of raw materials and oilwill divide the region into two.
Although the area’s performance was in general terms,"expected by the forecasts," the IMF report says the contraction inBrazil "was deeper than expected."
That’s the reason the report acknowledges "substantialdifferences between regions and countries" with South America "veryaffected" by the falling prices of raw materials, while Mexico, CentralAmerica and the Caribbean are benefiting from the US recovery and low oilprices.
In the Caribbean, Dominican Republic will grow 5.4% in 2016and 4.5 % in 2017, whereas Haiti will post 2.3 % ad 3.3 %, respectively.