IMF predicts that Uruguay’s fiscal deficit in 2022 will be 2.5% of GDP – Business – 04-20/2022

That International Monetary Fund (IMF) predicts that Latin American countries will close 2022 with a deficit an average of 4.7% of the Gross Domestic Product (GDP). In the case of Uruguaywill stand at 2.5%.

In its report on “fiscal oversight” published today, the financial institution also forecasts that the average deficit in the region will reduce to 4.2% of GDP in 2023 and 3.4% in 2024.

In the region, the IMF expects wide variation for 2022, ranging from a 7.6% forecast for Brazil to 1.5% for Chile, past 3.2% for Mexico; 3.8% for Argentina; 2.4% for Peru; 4.6% for Colombia and 2.7% for the Dominican Republic.

“Projections for most Latin American countries show significantly lower deficits than in 2020 due to the end of the extraordinary fiscal measures imposed by the pandemic and the return of economic growth and therefore tax revenues,” he said in an interview with Efe. Paul MauroDeputy Director IMF Financial Affairs Department.

Regarding the weight of public debt in relation to GDP, the IMF projects that it will average 71.7% in the region in 2022, and will remain stable around this figure for the next five years.
Regarding the two largest economies in the region, the IMF estimates the debt/GDP ratio for Brazil to be 91.9% for Brazil this year and 58.4% for Mexico.

According to Mauro, the unexpectedly high inflation experienced in Latin America helps reduce the debt/GDP ratio in the short term in countries financed in their own currencies, but economists caution that this is not a viable way to keep accounts organized. long-term.

Outside of Latin America, the IMF projects that the United States will close 2022 with a public deficit of 4.8%; eurozone, 4.3%; United Kingdom, 4.3%; China, 7.7%; Japan, 7.8%; and India, 9.9%.

Roderick Gilbert

"Entrepreneur. Internet fanatic. Certified zombie scholar. Friendly troublemaker. Bacon expert."

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