MNI: Latam Policymakers Concerned About US Elections at IMF
MNI (WASHINGTON) - The main topic discussed by Latin American policy makers at the IMF autumn meetings in Washington this week was how the result of the U.S. presidential election would impact the region, MNI understands.
The discussion centered on how different the economic outlook would be depending on each of the two candidates, Republican Donald Trump and Democrat Kamala Harris.
One official who participated in the debate said that there is potential for growth in China’s trade relations with Latin American countries, especially with Chile, though Brazil could also benefit. Immigration issues would likely affect Mexico more significantly.
There would be a positive boost for some Latin American countries, the official said, which would start exporting more to China due to restrictions from the US if Trump wins.
Another relevant topic discussed was the inflationary effect of the fiscal deficits in the region's countries. Both U.S. candidates are proposing significant fiscal expansions, although credible estimates suggest the budget deficit would grow substantially larger under Trump.
Policymakers are also concerned about the rise in public debt, emphasizing the rising importance of fiscal discipline in recent years.