Business · Economy · 1 hr ago
IMF warns Latin America to watch inflation as growth slows
The IMF's chief economist urged Latin America and the Caribbean to watch inflation as the region faces higher prices.
The IMF forecasts inflation of 4.2% this year and 4.1% next year.
It expects the region's economy to grow 2.3% in 2026 and 2.5% in 2027, with the 2026 estimate slightly lower than its July forecast.
The crisis in oil markets linked to the Middle East war is expected to affect countries unevenly, depending on their exposure to commodities.
Tenreyro said policymakers should prevent higher energy and raw-material costs from causing further price increases.
Brazil's 2026 growth forecast was cut to 2.2%, while the IMF expects global growth of 3.1% that year.
The IMF warned Latin America and the Caribbean to remain alert to inflation, which it expects to rise to 4.2% this year and 4.1% next year.
The fund projects regional economic growth will slow slightly, to 2.3% this year, before rising to 2.5% in 2027.
The IMF said the oil crisis caused by the war in the Middle East will affect countries unevenly, depending on their exposure to commodities.
For Brazil, the IMF cut its 2026 growth forecast to 2.2%.
The fund expects Argentina’s growth to slow to 2.1% after reaching 4.5% last year.
- Who
- The IMF, represented by its chief economist, Silvana Tenreyro.
- What
- The IMF warned the region to stay alert to inflation and forecast slower growth.
- When
- Tuesday, October 13, 2026.
- Where
- Latin America and the Caribbean; the IMF’s economic outlook was published around its general assembly in Bangkok.
- Why
- Inflation is expected to rise, while the oil crisis caused by the war in the Middle East is affecting economies unevenly.
This story does not have two clearly opposing sides.
Argentina recorded growth of 4.5%.
The IMF’s previous estimate for regional growth was 0.1 percentage point higher than its new forecast for this year.
The IMF published its new global economic outlook, and Tenreyro warned the region to remain alert to inflation.
The IMF expects Argentina’s growth to begin recovering.
The IMF projects regional growth of 2.5% and expects Argentina’s recovery to strengthen.
- Regional inflation
- 4.2% this year; 4.1% next year
- Regional GDP growth
- 2.3% this year; 2.5% in 2027
- Brazil growth forecast
- 2.2% in 2026
- Argentina growth
- 4.5% last year; forecast to slow to 2.1%
- Global growth forecast
- 3.1% in 2026
What people are saying
The fund's recommendation is to keep attention focused on inflation
avoid any second-round effects of this energy and commodity shock, for both exporters and importers
quite heterogeneous, depending on each country's exposure to commodities
That said, we expect growth to begin recovering in the last quarter of this year and strengthen further in 2027 and 2028
Sources
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