The International Monetary Fund (IMF) estimates that Latin America will have an inflation of 9.3% in 2021, which means that it will be the region with the highest price increase in the world, according to the new Global Economic Outlook (WEO) report. in English) of the agency, published this Tuesday.
The IMF’s chief economist, Gita Gopinath, pointed out at a press conference that the Fund has detected a generalized inflation in Latin America because it has been affected by the increase in the prices of energy and raw materials, and the different rhythms of national demands.
“It is important that countries tailor their monetary actions to the specific circumstances of each country,” Gopinath recommended.
By 2022, the IMF estimates that inflation in Latin America will fall to 7.8%, a still high figure.
In his remarks, Gopinath also spoke about the situation in Argentina, a country for which the Fund left its inflation forecast blank.
The Fund’s chief economist warned that inflation expectations in Argentina are “unmoored”, in part due to a “greater dependence on monetary financing.”
“We continue to work closely with the Argentine government at a technical level to come up with solutions for more sustainable growth,” Gopinath remarked.
Argentina is currently negotiating with the IMF an agreement to refinance its debt for about 45,000 million dollars, through a plan subject to policies that improve economic activity and the fiscal health of the country.
As for Venezuela, the Fund expects inflation to grow 2,700% this year.
On the other hand, the multilateral organization foresees in its latest report that prices in the US will rise 4.3% in 2021 and 3.5% in 2022.
The report is published coinciding with the celebration of the assembly of the IMF and the World Bank (WB), both organizations based in Washington, in virtual format due to the covid-19 pandemic.