Latin America’s fast-growingeconomies will experience a “modest worsening” in 2011 and 2012due to the global economic slowdown, the International MonetaryFund said in a report released on Wednesday.

Financial troubles in Europe combined with a sharp slowdown in Asia could further hit commodities prices, which would have a negative impact on several Latin American economies that rely heavily on exports of food, oil or minerals, the report said.

In case growth in the developed world decelerates even morethan expected, inflation-targeting economies should turn firstto the tools of monetary policy, the IMF recommended.

Source: Reuters

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