Advertisement

IMF forecasts stronger rebound for Latin American economies

  • The shadows of demonstrators are cast on a Brazilian flag during a protest demanding the impeachment of Brazilian President Jair Bolsonaro at the Esplanade of Ministries in Brasilia, Brazil, Saturday, July 24, 2021. Activists called for nationwide demonstrations against Bolsonaro to call for his impeachment amid allegations of potential corruption in the Health Ministry's purchase of COVID-19 vaccines and his handling of the pandemic. (AP Photo/Eraldo Peres)
    1/5

    APTOPIX Brazil Protest

    The shadows of demonstrators are cast on a Brazilian flag during a protest demanding the impeachment of Brazilian President Jair Bolsonaro at the Esplanade of Ministries in Brasilia, Brazil, Saturday, July 24, 2021. Activists called for nationwide demonstrations against Bolsonaro to call for his impeachment amid allegations of potential corruption in the Health Ministry's purchase of COVID-19 vaccines and his handling of the pandemic. (AP Photo/Eraldo Peres)
    ASSOCIATED PRESS
  • Sara Vazquez, 23, second from left, talks to Alan Salinas, 25, during a lunch in a restaurant at the Huerto Roma food plaza in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. (AP Photo/Ginnette Riquelme)
    2/5

    Mexico Virus Outbreak

    Sara Vazquez, 23, second from left, talks to Alan Salinas, 25, during a lunch in a restaurant at the Huerto Roma food plaza in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. (AP Photo/Ginnette Riquelme)
    ASSOCIATED PRESS
  • A healthcare worker takes a swab sample from a young woman's throat to test for COVID-19, in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. Macias tested negative. (AP Photo/Ginnette Riquelme)
    3/5

    Mexico Virus Outbreak

    A healthcare worker takes a swab sample from a young woman's throat to test for COVID-19, in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. Macias tested negative. (AP Photo/Ginnette Riquelme)
    ASSOCIATED PRESS
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • A woman walks past Sugarloaf Mountain in Rio de Janeiro, Brazil, Friday, July 23, 2021, during the COVID-19 pandemic. (AP Photo/Bruna Prado)
    4/5

    Virus Outbreak Brazil

    A woman walks past Sugarloaf Mountain in Rio de Janeiro, Brazil, Friday, July 23, 2021, during the COVID-19 pandemic. (AP Photo/Bruna Prado)
    ASSOCIATED PRESS
  • Commuters crowd a bus promoting the use of face masks during the COVID-19 pandemic in Rio de Janeiro, Brazil, Friday, July 23, 2021. (AP Photo/Bruna Prado)
    5/5

    APTOPIX Virus Outbreak Brazil

    Commuters crowd a bus promoting the use of face masks during the COVID-19 pandemic in Rio de Janeiro, Brazil, Friday, July 23, 2021. (AP Photo/Bruna Prado)
    ASSOCIATED PRESS
The shadows of demonstrators are cast on a Brazilian flag during a protest demanding the impeachment of Brazilian President Jair Bolsonaro at the Esplanade of Ministries in Brasilia, Brazil, Saturday, July 24, 2021. Activists called for nationwide demonstrations against Bolsonaro to call for his impeachment amid allegations of potential corruption in the Health Ministry's purchase of COVID-19 vaccines and his handling of the pandemic. (AP Photo/Eraldo Peres)
Sara Vazquez, 23, second from left, talks to Alan Salinas, 25, during a lunch in a restaurant at the Huerto Roma food plaza in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. (AP Photo/Ginnette Riquelme)
A healthcare worker takes a swab sample from a young woman's throat to test for COVID-19, in Mexico City, Saturday, July 10, 2021. Mexico is entering its third wave of the coronavirus pandemic. The country's health department said Friday the growth is largely coming from infections among younger, less vulnerable people. Macias tested negative. (AP Photo/Ginnette Riquelme)
A woman walks past Sugarloaf Mountain in Rio de Janeiro, Brazil, Friday, July 23, 2021, during the COVID-19 pandemic. (AP Photo/Bruna Prado)
Commuters crowd a bus promoting the use of face masks during the COVID-19 pandemic in Rio de Janeiro, Brazil, Friday, July 23, 2021. (AP Photo/Bruna Prado)
Associated Press
·1 min read

RIO DE JANEIRO (AP) — The International Monetary Fund on Tuesday boosted its forecast for gross domestic product in Latin America and the Caribbean, fueled by stronger outlooks for its two largest economies.

The IMF expects the region will grow 5.8% this year, up 1.2 percentage points from a forecast released in April. The region contracted 7% last year, marking the worst performance of any region in the world.

“The forecast upgrade ... results mostly from upward revisions in Brazil and Mexico, reflecting better-than-expected first quarter outturns, favorable spillovers to Mexico from the improved outlook for the United States, and booming terms of trade in Brazil,” the IMF wrote in its report.

The multilateral raised its forecasts for Brazil by 1.6% to 5.3%, and for Mexico by 1.3% to 6.3%. It didn't publish figures for other nations in the region.

The updated perspective for Brazil is in line with the median outlook from economists surveyed by the nation's central bank, who have increased their projections for 14 straight weeks.

The IMF's 2021 outlook for the global economy was unchanged from April. A brighter outlook for Latin America was offset by lower forecasts for emerging and developing Asian economies.