Source: INTERNATIONAL MONETARY FUND
IMF Regional Economic Outlook Sees Latin America Recovering More Quickly from the Global Crisis Relative to Advanced Countries.
The global crisis that began in advanced economies has sent severe shocks around the world, posing a test to the economies of Latin America and the Caribbean. The good news is that during this decade the region has made itself more resilient to external shocks, by strengthening policy frameworks and reducing vulnerabilities in its public finances and financial systems. These preparations, the report shows, mean that countries are now more able to respond to the external crisis, many for the first time, with active policies to boost output and employment and protect the most vulnerable groups. This will help contain the damage from the global crisis and speed up the region’s recovery.
Tourism has also been affected by the global crisis, weighing down on economic prospects for the Caribbean countries in particular. After an uptick in the first half of 2008, tourist visits to the Caribbean are estimated to have fallen by about 5 percent during the second half of the year. It is expected that tourism receipts will decline substantially more in 2009.