Latin America’s countries are expected to maintain prudent tax policies to strengthen their economies in the midst of a rapid climbing of voltages and commercial uncertainties, Nigel Clarke, deputy director of the Internazional Monetary Fund, told Reuters Nigel Clarke.
“Now it’s not the time to change the structure or abandon the tax plans,” Clarke said in a written response before visiting Paraguay on Friday, where he will launch a regional training program to “strengthen the analytical and institutional ability throughout the region”, according to Clarke.
Latin America resisted the impact of Covid-19 pandemic better than expected, recognized, removing the emergencies supporting policies introduced during the health crisis in time.
However, since then countries including Brazil, Chile, Colombia, Mexico, Paraguay, Peru and Uruguay have again had levels of debt compared to those observed at the culmination of the pandemic in 2020. This means that their economies are exposed to multiple risks deriving from market volatility, especially in the United States, in a moment when global growth is more difficult.
“Our message to the countries of Latin America and the Caribbean is that they continue to implement the necessary structural reforms and strengthen the resilience of their economies,” said Clarke, adding that trade should be deepened by reducing commercial barriers.
In April, the IMF examined its growth estimate for Latin America and 2.0% Caribbean, from 2.5% to January and before expansion of 2.4% last year. This review has been guided mainly by the Economy of Mexico, strongly interconnected with that of the United States, since the US commercial rates affect exports.
Clarke will be launched this Friday in Paraguay a regional FMI training program for South America and Mexico, with the aim of supporting countries in professional training and data updating.
The regional training program, organized by the Central Bank of Paraguay, will begin on Friday with eight courses distributed in the next 12 months and the first will focus on macroeconomic and tax policies.
Source: Terra
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