Lagarde Begins a Tour of Peru and Chile as Latin America Slowdown

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, held this week toured Latin America that will lead to Peru first, and then to Chile, at a time when the region faces an economic slowdown after years of prosperity.

In its latest forecast in October, the institution slashed its forecasts for Latin America, with an estimated growth of 1.3% this year, the lowest since 2009; and 2.2% next.

According to the IMF, the slowdown is due to the slowdown in exports “in early 2014,” prices of raw materials “stagnant” and “growth slower demand than expected.”

Peru, the first stop on the tour Lagarde, still maintains a healthy growth, but has also noticed the slowdown, especially the demand from China, and is expected to expand 3.6% in 2014, compared with 5% 2013.

In Lima, where the director of the IMF remain on Tuesday and Wednesday, will be with the president, Ollanta Humala, and the economic team of the President of the Central Bank of Peru, Julio Velarde, and Finance Minister Alonso Segura.

Lagarde also visit the construction site of the new complex in the Peruvian capital will host in October 2015 the big event of the institution he leads: Joint Annual Meeting of the IMF and the World Bank (WB).

“As two of the economic star of last week in the region, Chile and Peru are particularly dependent on commodity trade with China, but also models of rectitude and economic orthodoxy,” said Eric Farnsworth, vice president of the Council of the Americas , study center based in Washington.

Therefore, Farnsworth stressed that Lagarde’s visit will help to analyze a “coordinated response” to the economic downturn and promote rapid return to growth without falling “in aggressive populism that has proved so destructive in other countries of South America”.

Subsequently, the IMF managing director will travel to Santiago de Chile, where he will participate in high-level conference “Challenges to ensure growth and shared prosperity in Latin America”, organized jointly with the Chilean government.

In it, according to a joint statement of the Fund and the Chilean Executive, will seek to do “emphasize the importance of macroeconomic stability and the proper design of policy frameworks to create an enabling environment to reduce inequality in a global context of volatility and uncertainty ”

The meeting will bring together between 5 and 6 December prominent regional economic leaders, including ministers from Chile and Colombia; and the Governors of the Central Banks of Mexico Argentina, Brazil, among others.

Have also confirmed their presence president of the Inter-American Development Bank (IDB), Luis Alberto Moreno; and Secretary General of the Organization of American States (OAS), José Miguel Insulza.

During his stay in Santiago, Lagarde also hold a meeting with Chilean President Michelle Bachelet.

As in Peru, the IMF held in October considerable downgrades growth forecasts for the economy of Chile, which left at 2% for 2014, compared with 4.1% last year.

This will be his third visit to the region since he succeeded his compatriot Dominique Strauss-Kahn as head of UNICEF in 2011.

In both cases, repeated Lagarde destination since the first trip only taking office was to Peru and Brazil, and in 2012 traveled to Mexico, Colombia and Chile.