Widely remembered in Mexico for pushing for social spending cuts in return for debt relief in the 1990s, the IMF is now advocating globally for greater fiscal stimulus and public investment to end the slump. All Rights Reserved The Yucatan Times 2020. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. 'Deeply disturbing': Feds charge six militia members in domestic terror plot to kidnap Michigan Gov. Export. Mexico’s former security minister Genaro García. The IMF pointed to a cooling of GDP in Mexico, which currently hopes to conclude a new trade agreement with the United States and Canada, the T-MEC (USMCA, formerly known as NAFTA). 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For optimum experience we recommend to update your browser to the latest version. Your browser is not up-to-date. CDC: White men still aren't washing their hands, Officials announce arrests in plot to kidnap Michigan Gov. In preliminary findings reported after a visit to Mexico, the IMF said Latin America's second-largest economy should also further lower interest rates to help the recovery from the worst contraction since the 1930s Great Depression, largely induced by measures to contain the coronavirus pandemic. For the United States, the IMF predicts growth of 4.5 per cent next year, 0.2 percentage point weaker than in its April forecast. Still, the managing director signaled stronger-than-expected growth in the second and third quarters will fuel a "small upward revision" to the IMF's 2020 growth forecast. AMLO noted that Mexico is currently undergoing a paradigm shift and therefore can not use the same parameters, so it will not use only economic growth as a parameter for development, as “it can lead to a concentration of wealth”. © 2020, Nasdaq, Inc. All Rights Reserved. In the report, the IMF recommended tax reform to support spending in the medium term. Mexico should implement larger near-term fiscal support to alleviate current and longer-lasting economic distress, the International Monetary Fund said on Tuesday, recommending the government expand its welfare net and unemployment benefits. MEXICO CITY, Oct 6 (Reuters) - Mexico should implement larger near-term fiscal support to alleviate current and longer-lasting economic distress, the International Monetary Fund said on Tuesday, recommending the government expand its welfare net and unemployment benefits. Valladolid, Yucatán (October 8, 2020).- The. The IMF predicts a 9.1% plunge for Brazil, which is Latin America’s biggest economy and most populous nation. 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This morning, the International Monetary Fund (IMF) applied a sharp cut to the estimates of economic growth in Latin America, given a more pronounced slowdown expected in Brazil and Mexico, exacerbated by global trade disputes and a deterioration in the confidence of investors and analysts. Banco de México influences inflation expectations and interest rate through the Monetary policy in order to create an atmosphere of stable low inflation and proper conditions for steady growth and the formation of constant workplaces. If you continue to use this site we will assume that you are happy with it. Industrial production that month fell 18.8% from the prior month, including an 80% decline in output of durable goods, according to data published June 3. )+[a-z]{2,})$/i, failureMessage: "A valid email address is required"});var dom2 = document.querySelector('#form1783 #field2');var field2 = new LiveValidation(dom2, {validMessage: "", onlyOnBlur: false, wait: 300});field2.add(Validate.Presence, {failureMessage:"This field is required"});var dom11 = document.querySelector('#form1783 #field11');var field11 = new LiveValidation(dom11, {validMessage: "", onlyOnBlur: false, wait: 300});field11.add(Validate.Custom, {against: function(value) {return !value.match(/(telnet|ftp|https?):\/\/(?:[a-z0-9][a-z0-9-]{0,61}[a-z0-9]\.|[a-z0-9]\. However, Mexico does not have a universal unemployment benefit, and many who have lost their jobs in the pandemic are not eligible for welfare support. The multilateral lending agency said in its report that in Latin America, “most countries are still struggling to contain infections.”. document.getElementById("comment").setAttribute( "id", "a35847e0d6d3c9e5848ff8a1657cf0a7" );document.getElementById("e14102fcf6").setAttribute( "id", "comment" ); Save my name, email, and website in this browser for the next time I comment. Bookmark Follow. The International Monetary Fund released an updated outlook Wednesday, June 24, forecasting a nearly double-digit recession for Latin America and the Caribbean in 2020. That would be the deepest single-year tumble since at least 1901, when national accounts data from the government’s economics institute begin. Whitmer, Facebook Removes Network Of Fake, Pro-Trump Conservative Accounts, PHOTOS: Justice Ruth Bader Ginsburg — A look back, President Trump admits 'we really need' coronavirus stimulus, Pelosi responds: 'We’re at the table', Justice Dept. "Mexico has some fiscal space and enjoys comfortable market access that could be used during these difficult times," the IMF said, suggesting temporary fiscal support of 2.5%-3.5% of GDP to be focused on health, business and households. Despite emerging from the political left, Mexico's President Andres Manuel Lopez Obrador has kept a tight lid on spending and borrowing, with his fiscal response to the pandemic the smallest among G20 economies. nodes[i].dataset.subscription : nodes[i].getAttribute('data-subscription'); if(status ==='true') {nodes[i].checked = true;}}};var nodes = document.querySelectorAll('#form1783 select[data-value]'); if (nodes) { for (var i = 0; i < nodes.length; i++) { var node = nodes[i]; var selectedValue = node.dataset ? Prodded by the United States, Mexico reopened its automotive, mining and construction industries starting in June, but plans for a broader restart of the economy have been delayed due to the continued high rates of new COVID-19 cases. The second largest regional economy would grow 0.9% this year and rebound to 1.9% in 2020, with a reduction of 0.7 percentage points in the 2019 estimate although it will still be below the 2.2 expected last January. Yes! Recreational use of marijuana law expected to pass in December, Fallen trees and flooded streets in Acanceh, Yucatan, IMSS Yucatán reports no casualties or injuries, There will be consequences if mismanagement in trusts is proven, Mexican Army provides food to Yucatecan families that were affected by Hurricane “Delta”, Mexico’s annual inflation cools in September, Mexico’s Oil Hedge Under Wraps, But Traders Suspect Activity, Delta” left a white balance, Navy and Civil Protection said, Hurricane Delta lashes Mexico’s Yucatan Peninsula and is now heading for the US, Mexico’s ex-security chief Genaro García Luna pleads not guilty to cartel links. Economists surveyed by Brazil’s central bank currently forecast a 6.5% contraction this year. Mexico Inflation Forecast 2019-2024 and up to 2060, Data and Charts G20 Economic Forecast . For Guillermo Nieto, a Mexican businessman. The updated outlook for the region, released Wednesday, is down sharply from the 5.2% recession forecast in April, which already would have been the worst performance since at least 1980, the first year in the IMF’s World Economic Outlook database. According to OECD, IMF, UN … The IMF pointed to a cooling of GDP in Mexico, which currently hopes to conclude a new trade agreement with the United States and Canada, the T-MEC (USMCA, formerly known as NAFTA). (Reporting by Diego Oré, Rodrigo Campos and Stefanie Eschenbacher; Editing by Frank Jack Daniel and Sam Holmes), ((frank.daniel@thomsonreuters.com; +52 55 5282 7137; Reuters Messaging: frank.daniel.thomsonreuters.com@reuters.net)). The new forecast includes a 10.5% dive for Mexico, which has lost about a million jobs during the pandemic. FILE - In this June 10, 2020 file photo, pedestrians walk through a downtown shopping district in Sao Paulo, Brazil.