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Christine Lagarde, managing director of the International Monetary Fund, said Mexico needs to implement structural reforms and Brazil should increase domestic savings.
Mexico should keep a “keen eye” on conditions in the United States and Europe, and Peru would benefit from continued reforms to achieve more inclusive growth while preserving macroeconomic stability, Lagarde said today on the IMF’s blog.
While Latin America is enjoying sustained growth and reduced vulnerability, the region should take “all necessary precautions” to prepare for any storms that come out of Europe, Lagarde said. The region should maintain prudent fiscal policies, although those policies should not come at the expense of social programs or productive investment in education or infrastructure, Lagarde said.
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