IMF Raises Latin America Growth Forecast, Sees Overheating

Economies in Latin American are showing signs of overheating as growth this year is poised to be faster than previously estimated, the International Monetary Fund said in a report today.

Driven by high commodity prices and abundant global liquidity, Latin America and Caribbean economies should expand 4.7 percent this year, up from the 4 percent forecast made in the IMF’s previous regional outlook in October. Peru and Argentina will lead South America’s expansion at 7.5 percent and 6 percent respectively as Brazil, the region’s biggest economy, climbs 4.5 percent. Mexico will grow 4.6 percent, the IMF said.