MEXICO CITY, Jan. 21 (Xinhua) -- The International Monetary Fund (IMF) on Monday downgraded its economic growth forecast for Latin America and the Caribbean in 2019 and 2020 amid weaker global expansion.
IMF's World Economic Outlook report projects a 2 percent growth for the region in 2019 and a rise of 2.5 percent in 2020, 0.2 percentage points lower than projected in its previous report issued in October.
"The revisions are due to a downgrade in Mexico's growth prospects in 2019-2020, reflecting lower private investment, and an even more severe contraction in Venezuela than previously anticipated," the report said.
The region's No. 2 economy Mexico is now expected to see a 2.1 percent growth in 2019 and a 2.2 percent rise in 2020, down by 0.4 and 0.5 percentage point, respectively.
Meanwhile, Argentina's economy is expected to contract "as tighter policies aimed at reducing imbalances slow domestic demand, before returning to growth in 2020," the report said.
Nevertheless, the region's top economy Brazil saw a better growth projection as the country is expected to continue recovering from its recession in 2015-2016.
Brazil's GDP could grow 2.5 percent in 2019, 0.1 percentage point more than previously anticipated, and 2.2 percent in 2020.