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Saturday, March 26, 2011

IMF warns of Latin American overheating and credit bubble risks

The head of the International Monetary Fund warned that many Latin American economies showed signs of overheating and that the region was at risk of credit bubbles.

"Growth in most Latin American economies is now back at potential or above -- and in many of them there are worrisome signs of overheating," IMF Managing Director Dominique Strauss-Kahn said in a blog that coincided with his visit to Calgary in Canada, where policymakers from the Americas were meeting during the weekend.

"Financial deepening (in Latin America), though welcome, can bring its own challenges, for example, the risk of credit bubbles," Strauss-Kahn said.

 

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Tags:  imf  latin america  strauss-kahn  





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