International Monetary Fund. Western Hemisphere Dept.
INTERNATIONAL MONETARY FUND
Economic activity remains robust and inflation is well-anchored by the crawling peg exchange rate regime. GDP growth is expected to moderate to its potential in 2017 and risks to the outlook are tilted to the downside. The external position is assessed to be broadly consistent with fundamentals. Monetary and financial conditions are stable, with credit growth decelerating in 2016; nonetheless, gaps in financial supervision remain. A slightly more expansionary fiscal stance is projected for the medium term, and, while staff considers public debt to be sustainable over the medium term, stress events could significantly alter its trajectory.