## Regional Economic Outlook Update: Western Hemisphere Hemisphere Department

_Western Hemisphere, October 12, 2012_

## Source details

**Canonical URL:** [Regional Economic Outlook Update: Western Hemisphere Hemisphere Department](https://www.imf.org/en/publications/reo/wh/issues/2017/01/07/latin-america-and-the-caribbean2)

## Other formats

- [Markdown version](/en/publications/reo/wh/issues/2017/01/07/latin-america-and-the-caribbean2/index.md)
- [Structured JSON version](/en/publications/reo/wh/issues/2017/01/07/latin-america-and-the-caribbean2/index.json)
- [Bundle manifest](/en/publications/reo/wh/issues/2017/01/07/latin-america-and-the-caribbean2/bundle-manifest.json)

## Bibliographic details
- Published: October 12, 2012
- Series: Western Hemisphere

---

### Overview and recent growth dynamics
- Growth in the Latin America and Caribbean (LAC) region has softened since our April report.
- The softening reflects the larger-than-anticipated impact of earlier policy tightening and the somewhat less favorable external environment.
- Challenges are more pressing in some countries, particularly those in the Caribbean, where the recovery has been held back by weak balance sheets and external demand.
- Date of report: October 2012.

### External environment and risks
- Global downside risks have increased, as the crisis in Europe continues to simmer, and the U.S. fiscal cliff looms.
- External finance and commodity prices remain stimulative, providing twin tailwinds to the region.

### Policy implications and recommendations
- With slack in many countries limited, and external conditions still stimulative, policies need to be carefully calibrated to keep domestic demand and credit growth in check.
- The key task for many countries remains to strengthen the resilience of their economies by rebuilding fiscal buffers and safeguarding financial stability.

### Communication
- Press Conference: Western Hemisphere Regional Economic Outlook Update, October 2012

*Regional Economic Outlook Update: Western Hemisphere Department (October 2012)*

---

## Content in this bundle

- **wreo1012**
  - [wreo1012 (Markdown version)](/external/pubs/ft/reo/2012/whd/eng/pdf/wreo1012.pdf.md){rel="alternate" type="text/markdown"}
  - [wreo1012 (PDF)](/external/pubs/ft/reo/2012/whd/eng/pdf/wreo1012.pdf){rel="external" type="application/pdf"}
- **Spillovers from Large Neighbors in Latin America**
  - [Spillovers from Large Neighbors in Latin America (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013apdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Spillovers from Large Neighbors in Latin America (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013apdf.pdf){rel="external" type="application/pdf"}
- **The Effects of Global Financial Shocks on Output in Latin America — Section 1**
  - [The Effects of Global Financial Shocks on Output in Latin America — Section 1 (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013bpdf.pdf.md){rel="alternate" type="text/markdown"}
  - [The Effects of Global Financial Shocks on Output in Latin America — Section 1 (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013bpdf.pdf){rel="external" type="application/pdf"}
- **Keeping an Eye on Housing Markets in Latin America**
  - [Keeping an Eye on Housing Markets in Latin America (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Keeping an Eye on Housing Markets in Latin America (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo013013pdf.pdf){rel="external" type="application/pdf"}
- **Regional Economic Update—Latin America and the Caribbean, October 2012**
  - [Regional Economic Update—Latin America and the Caribbean, October 2012 (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo1012pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Regional Economic Update—Latin America and the Caribbean, October 2012 (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo1012pdf.pdf){rel="external" type="application/pdf"}
- **On Neutral Interest Rates in Latin America**
  - [On Neutral Interest Rates in Latin America (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo111912pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [On Neutral Interest Rates in Latin America (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo111912pdf.pdf){rel="external" type="application/pdf"}
- **Nonfinancial Firms in Latin America: A Source of Vulnerability?**
  - [Nonfinancial Firms in Latin America: A Source of Vulnerability? (Markdown version)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo112912pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Nonfinancial Firms in Latin America: A Source of Vulnerability? (PDF)](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/reo/2012/whd/eng/pdf/_wreo112912pdf.pdf){rel="external" type="application/pdf"}

---

## References

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- [Growth in Latin America Moderating but Resilient](https://www.imf.org/external/pubs/ft/survey/so/2012/CAR101212C.htm)
- [Western Hemisphere: Regional Economic Outlooks Archive](https://www.imf.org/external/pubs/ft/reo/reorepts.aspx?ddlRegions=12&ddlYear=-1)
- [Regional Economic Outlooks](https://www.imf.org/external/pubs/ft/reo/reorepts.aspx)
- [IMF Regional Reports](https://www.imf.org/external/pubs/cat/region.asp)
- [World Economic Outlook Archives](https://www.imf.org/external/ns/cs.aspx?id=29)
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_Source: https://www.imf.org/en/publications/reo/wh/issues/2017/01/07/latin-america-and-the-caribbean2_