UPDATE 1-LatAm needs to keep preparing for rainy days - IMF

(Adds more comments from Singh, background)

By Walter Brandimarte and Adriana Garcia

WASHINGTON, Oct 20 (Reuters) - The main challenge for Latin America right now is to increase its resilience to external shocks that are likely to take a toll on the global economy, the International Monetary Fund said on Friday.

The region should further reduce its external vulnerability by containing primary current spending, ensuring strong financial supervision, and increasing investment and productivity, said IMF Western Hemisphere Department Director Anoop Singh.

"As we look ahead, the challenge remains to sustain and to build on the recent developments, to ensure that the region remains resilient to shocks that may still occur," Singh told journalists in the IMF headquarters, adding that all risks for the global outlook remains on the downside.

The IMF director said Latin America so far has been weathering the global financial markets turbulence "rather well," thanks to stronger macroeconomic fundamentals in most countries and a wider consensus on preserving macroeconomic stability.

Inflation, although edging up in a number of countries, still remains low by historical standards, he said.

Bombarded with criticism about the IMF's latest growth forecasts for Latin America, Singh said the fund is taking into account the effects of external shocks.

However, confronted with higher official growth projections from Mexico and Brazil, he said that the economic outlook is still positive in the long term for both countries.