IMF Latam Economic Outlook Inflation Mexico




21 Oct 2021


WASHINGTON DC, United States



IMF Latam Economic Outlook Inflation Mexico
Washington, DC – Recent
1. B-ROLL: Exterior IMF

Washington, DC --- 21 October 2021
2. Wideshot news conference
3. SOUNDBITE: (English) Nigel Chalk, Deputy Director IMF Western Hemisphere Department:
“The good news is that after taking a very heavy toll for much of 2021, the pandemic appears to be receding in many parts of Latin America and the Caribbean. However, this is not a time for complacency. Vaccination campaigns have helped mitigate the pandemic's impact, but there are still important inequities in the availability of vaccines, and these need to be addressed.”
4. Wideshot news conference
5. SOUNDBITE: (English) Nigel Chalk, Deputy Director IMF Western Hemisphere Department:
“Rising commodity and food prices, global increases in goods prices, sector specific constraints and supply chain disruptions are all pushing consumer prices higher. Many central banks in the region have rightly reacted to these pressures by raising policy rates to underscore their commitment to their inflation goals. It is likely that these interest rate increases will continue in many countries in the coming months, and if inflation expectations become less well anchored, policymakers may have to react even more assertively too.”
6. Wideshot news conference
7. SOUNDBITE: (English) Nigel Chalk, Deputy Director IMF Western Hemisphere Department:
“And we do see Mexico recovering quite fast from the pandemic from last year, with growth over six percent this year. That's very good, I think. Mexico is being buoyed by a very strong rebound in the US and, you know, strong demand for for goods, particularly in the U.S. where Mexico is exporting. So that's that's all helping. I think we also see some scope for additional fiscal support to the economy. Both this year and over the medium term, particularly to increase investments in social areas in health and education to try and reverse some of the damage I think was done by the pandemic.”
8. Wideshot news conference
9. SOUNDBITE: (English) Nigel Chalk, Deputy Director IMF Western Hemisphere Department:
“OK. So on the outlook, the outlook is improving. So I think it would be right for the region to prepare, you know, looking forward that there will be a withdrawal of monetary support in some of the large advanced economies, particularly in the United States, which is very important for them. I think we were already seeing the U.S. Federal Reserve flagging that it will start soon. Tapering its asset purchases and potentially raising rates are forecast. Assume rates will start rising towards the end of next year. We think it's going to be a very gradual process.”
10. SOUNDBITE: (English) Nigel Chalk, Deputy Director IMF Western Hemisphere Department:
“Nonetheless, as those financial conditions tighten, we will see potentially lower capital inflows into the region. We potentially will see higher cost of capital for the region. And I think, you know, that will provide some headwind to growth. At the same time, you should expect that that period where rates are rising in the U.S. is because the U.S. economy is doing very well. And so for many countries, I think particularly those with strong trade leaks, the US, like Mexico and Canada, you're actually going to see a net positive effect that while interest rates will be rising in financial conditions may tighten. “

Washington, DC – Recent
11. B-ROLL: Exterior IMF Annual Meetings signage
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