Reuters logo
UPDATE 1-US fiscal cliff, commods volatility risks for Latam -IMF
December 13, 2012 / 3:10 PM / in 5 years

UPDATE 1-US fiscal cliff, commods volatility risks for Latam -IMF

* US fiscal cliff, euro zone woes potential risks for region

* IMF’s Lagarde cites macro prudential policies for commods-dependent countries

* Lagarde doesn’t see hard landing in China

SANTIAGO, Dec 13 (Reuters) - Inadequate tackling of the U.S. fiscal cliff, an acceleration of the euro zone debt crisis and volatility in commodity prices are potential risks for export-dependent Latin America, the head of the International Monetary Fund said on Thursday.

The region has been bolstered by exports to commodities-hungry China, where the IMF’s managing director Christine Lagarde said she doesn’t anticipate a “hard landing.”

Macro prudential policies can help commodities-exporting countries, Lagarde added during a talk with students at the Universidad de Chile in Santiago.

Negotiations on the “fiscal cliff” in the United States were expected to continue on Thursday. Sharp differences remained between congressional Republicans and the White House in talks to avert the cliff, and negotiators warned the showdown could drag on past Christmas.

In China, new loans and money supply came in below expectations in November while the pace of overall financing eased, adding to signs that a recovery in the world No.2 economy will be tepid and uneven even as global demand remains weak.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below