In general, panellists are upbeat about prospects for 2002, which as of this month will appear in greater detail in the publication. In 2002, Mexico will recover driven by the anticipated rebound in the United States. Argentina is anticipated to emerge out of the growth slump that has been plaguing the economy for the past two years. Furthermore, Peru should have a firmly established new government, which will provide a backdrop for a doubling of the 2001 growth rate. Chile will maintain its position, as the region s fastest growing economy, with growth further increasing.
Fiscal deficits remain on downward trend.
Lower economic growth will limit governments ability to raise tax collection and in the case of Argentina is prompting IMF-endorsed increased government spending. As a consequence, fiscal deficit forecasts for the region have been revised upward by 0.2 percentage points from last month. Nevertheless, the overall trend to higher fiscal discipline remains intact. The above text is an abridged version of the LatinFocus Consensus Forecast briefing for Latin America. For more details please click here .