IMF leader begins Latin American tour

Story highlights

  • Christine Lagarde, chief of the International Monetary Fund, is in Peru on Monday
  • She also will stop in Mexico and Brazil this week
  • Lagarde: These nations "have harvested the fruits of strong fundamentals"
The managing director of the International Monetary Fund, Christine Lagarde, met Monday morning with Peruvian President Ollanta Humala in Lima, the Peruvian capital. It was her first stop in a Latin American trip that also will include Mexico and Brazil.
After the meeting, Lagarde praised the economic policies instituted in the South American country.
"Peru is conducting a set of macroeconomic policies and monetary policies of great quality," Lagarde said. "It is a pleasure to see a country that has been accumulating a decade of consistent growth, keeping a tight hand on its monetary policy under the leadership of the central bank, and having much inflation under control as well as creation of value and employment."
Lagarde, who was named managing director at the IMF in July, has already visited Russia, China and Japan.
Latin America has historically been one of the most unstable regions in the world, financially and politically. But the region has seen unprecedented stability and growth in the past decade.
According to Lagarde, the three countries she's visiting have all done remarkably well in the past few years.
"They have harvested the fruits of strong fundamentals, sound policy frameworks, and prudent macroeconomic policies and are now enjoying sustained growth with reduced vulnerabilities -- an enviable sweet spot," she said in an analytical article she wrote prior to her visit to Latin America.
As a region, the economy in Latin America is expected to grow 4.5% this year, compared with 1.6% for developed nations.
Brazil has more than $350 billion in international reserves, and Mexico, as a new global economic engine, is taking the leadership of the Group of 20 in early December.