Overheating Risks in Latin America

New International Monetary Fund Report "Regional Economic Outlook Western Hemisphere: Watching Out for Overheating" warns of overheating risks in Latin America. The region is experiencing an excessively stimulative environment: high commodity prices and easy external financial conditions. The region’s Gross Domestic Product (GDP) is estimated to have expanded by around 6 percent in 2010, and it is projected to grow about 4.75 percent this year, this will require that governments withdraw any policy stimulus on a timely basis. For a summary of the report, see the press release here.