The International Monetary Fund (IMF) on Wednesday revised upwards its growth estimates for Latin America and the Caribbean, describing a faster-than-expected recovery from the global economic crisis. In its six-monthly report, the IMF said it expects Latin America and the Caribbean to grow 5.7 per cent this year. That marked a major leap up from its previous estimate, made in July, of 4.8 per cent, dpa reported. Estimates for 2011, however, were left unchanged at 4 per cent, in line with a global economic slowdown expected next year. Latin America's move out of the recent global crisis was only outdone by Asia's emerging powers, which are to grow 9.4 per cent this year and 8.4 per cent in 2011. The IMF noted that the good performance by Latin America and the Caribbean is based on their solid macroeconomic policy foundations, on an influx of investment from abroad and on booming income from the sale of commodities. The region's good performance rests above all on that of regional giant Brazil and on Chile, Colombia and Peru, the IMF said. Other countries were also benefiting from Brazil's strong trade ties. Brazil, the world's eighth-largest economy, is expected to grow by 7.5 per cent this year and 4.1 per cent in 2011. For Chile, the figures are 5 per cent this year and 6 per cent next year. Peru will grow by 8.3 per cent in 2010 and 6 per cent next year, while Colombia will expand 4.7 per cent this year and 4.6 per cent next year. Venezuela is once again the exception in the region. Its economy is expected to shrink by 1.3 per cent in 2010 and grow by a mere 0.5 per cent in 2011. Growth estimates also increased for Mexico, Central America and the Caribbean, though these economies were to remain vulnerable in light of their dependence on the US economy, the IMF noted. Mexico, the world's 14th-largest economy, is expected to grow by 5 per cent this year, up from the IMF's previous estimate of 4.5 per cent. In 2011, it is expected to grow by 3.9 per cent.
