The US economic downturn is expected to slowdown growth throughout the Western Hemisphere, according to the International Monetary Fund (IMF).

In its "Regional Economic Outlook: Western Hemispher", the IMF reports that overall, countries outside of the US are better placed than in the past to navigate the current financial turbulence.

The IMF says this is due to reduced vulnerabilities and stronger policy frameworks.

The report points to risks that the global financial stress could curtail capital flows to the region and world commodity prices could fall more than expected.

There are also risks stemming from rising inflation and rapid private credit growth in a number of countries.

Hence, there is a need, the IMF says, for governments to preserve the gains of recent years.