The World Bank argues that, in order to face the reduction in raw material prices and zero economic growth, Latin American countries must readjust their external accounts and reduce internal spending.

This is the fourth year of economic slowdown in Latin America and no growth is expected in 2015, according to Augusto de la Torre, the World Bank’s chief economist for Latin America.

The Fitch Ratings agency warned, in September, that the slowdown in China’s growth and the weakness in raw material prices represent additional challenges for Latin American exporters, putting their external and fiscal defenses to the test. In line with this perspective, De la Torre states that Latin American countries face different challenges, but the common thing is to avoid an economic contraction and the acceleration of inflation.

Speaking to the Reuters Agency, De la Torre states that ”an economic slowdown is impossible to avoid […] but what we want to avoid is that it is socially excessive”.

The World Bank’s chief economist believes that the Latin American region is better prepared than in the past to deal with the reduction in demand for its products, in particular because it has managed to accumulate international reserves and has been able to attract significant foreign investment.

Next week, the World Bank and the International Monetary Fund (IMF) will present in Lima, Peru, a new report on the prospects for the global economy. Remember that in June the World Bank reduced its global growth forecast to 2.8% this year.