Economic activity in Latin America and the Caribbean is expected to stay in low gear in 2014, according to the IMF’s latest forecast for the region. Lower world commodity prices and rising global funding costs are likely to weigh on activity across the region.
Growth in sub-Saharan Africa is set to accelerate in 2014, reflecting better prospects in most oil exporters and in some low-income countries and fragile states. The IMF’s new regional outlook projects 2014 GDP growth at 5½ percent, up from about 5 percent in 2013.
The IMFC stressed that countries should shift their focus from the short term to the medium term, with special emphasis on carrying out structural reforms that will support sustainable, balanced, and job-rich growth.
In an interview, Tharman Shanmugaratnam—Deputy Prime Minister of Singapore and IMFC Chair—says that we are in a new phase of recovery requiring a new balance in policymaking, focused on building resilience in growth and jobs.