FLLA - Latin America And The Caribbean's Winding Road To Recovery

• The IMF upgraded its 2020 forecast for the region from -8.1 to -7.4 percent.
• Despite this resurgence, we revised our regional 2021 growth forecast upwards to 4.1 percent (from 3.6 percent in October), based on the stronger than expected performance in 2020, an expectation of expanding vaccination efforts, better growth outlook for the United States, and higher prices of some commodities.
• The aggregate forecast masks important differences across countries. While growth for this year in Brazil, Mexico, Chile, Colombia, and Peru was revised up, it was downgraded for the Caribbean, from 4 to 2.4 percent, because resumption in vital travel and tourism activity has been much slower than anticipated.

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