Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

October 24, 2018

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

2018 will mark 15 years since the start of the 2003–04 financial crisis. Reforms put in place following the crisis have contributed to strong economic performance over the past decade and a restoration of external stability. The economy is now growing close to potential, inflation is within the central bank’s target range, unemployment is near historical lows, and the external current account deficit has narrowed. The economic outlook remains positive with broadly neutral monetary and fiscal policy expected to keep economic activity on trend and inflation within the target band over the medium term. However, risks around the outlook persist, with the main downside risks stemming primarily from external factors. In this context, the key challenge will be to build resilience to these risks by strengthening domestic fundamentals. Progress will be essential to increase potential growth and further reduce poverty and inequality.

Series:

Country Report No. 18/294