Economics

IMF Cuts 2019 Brazil and Mexico Growth Forecasts to Below 1%

  • Multilateral sees Venezuela “devastation” of 35% GDP decline
  • Latin America to grow 0.6% in 2019, down from prior 1.4% call
IMF Says Sluggishness in Global Growth Is to 'Some Extent Self-inflicted'
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Latin America’s two largest economies will grow less than 1% this year amid weakening confidence and policy uncertainty, according to the International Monetary Fund.

Brazil and Mexico will grow 0.8% and 0.9%, respectively, according to a July update of the IMF’s World Economic Outlook. Two months ago, the IMF had forecastBloomberg Terminal that Brazil would expand between 1% and 1.5%, while its outlook for Mexico’s economy was 1.6% in April. Those cuts bring the IMF’s growth outlook for Latin America down to 0.6%, from 1.4% previously.