The Strategist

IMF forecasts economic difficulties for Latin America due to falling commodity prices

02/02/2023 - 06:05

According to a published analysis of the International Monetary Fund, the region of Latin America will experience challenges in 2023 due to sluggish economic development and declining commodity prices (IMF).

Leon Hernandez
Leon Hernandez
"The year 2023 is probably going to be challenging for the area. This year's growth will only be 2% due to rising interest rates and declining commodity prices," the article reads.

The IMF predicts that many people in the region will experience "declining standards of living" and growing fear about the future as a result of slower growth, high inflation, and global unpredictability.

Additionally, a downturn in trading partners like the United States and the euro zone will impede economic growth.

The IMF warned that "downside risks," like as tighter-than-anticipated financial conditions and Russian military intervention in Ukraine, would continue to predominate.

The global organization also observed a downturn in consumer spending at the same time as job creation decreased and corporate and consumer confidence shrank.