IDB warns of severe LatAm recession in 2009
Tuesday, 25 November 2008
CARACAS, Nov 24 (AFP): The Inter-American Development Bank predicted yesterday a sharp downturn for Latin America in 2009 with lower revenues and rising unemployment, and said it would redirect six billion dollars to finance production.
"Latin America faces a crisis that is very different from those of the past," said IDB Vice President Santiago Levy at a meeting in Santo Domingo. "We face a period of stagnation in global growth, at least throughout 2009 and possibly through the first quarter of 2010."
According to the official, job creation "will practically stop," with a consequent rise in informal occupations.
Faced with these expectations, the Bank decided to redirect six billion dollars earmarked for other assistance operations to stimulate regional productivity.
"Latin America faces a crisis that is very different from those of the past," said IDB Vice President Santiago Levy at a meeting in Santo Domingo. "We face a period of stagnation in global growth, at least throughout 2009 and possibly through the first quarter of 2010."
According to the official, job creation "will practically stop," with a consequent rise in informal occupations.
Faced with these expectations, the Bank decided to redirect six billion dollars earmarked for other assistance operations to stimulate regional productivity.