Brazil will grow less and Mexico more than originally expected, the IMF forecasts.
BY CHRONICLE STAFF
Thanks to favorable commodity prices and increased local demand, Latin America’s economies are set for higher growth this and next year than originally anticipated.
“Recent economic performance in Latin America and the Caribbean has been strong, and is expected to remain solid in 2007,” the IMF said last week. “Moreover, this expansion is generally on a sound macroeconomic footing.”
Also private sector economists have been reporting better results. “In Latin America the themes for the year have been higher-than expected economic growth and political outcomes that have been more market-friendly than they could have been,” Bear Stearns said in its latest Emerging Markets Sovereign Quarterly.
Nearly all countries in Latin America, with the exception of Brazil and Chile, have reported an acceleration of second quarter growth, due to strong domestic demand and the continued relatively positive performance of exports, Bear Stearns says.
As a result, Bear Stearns has upgraded its forecast for the top 11 economies from 4.6 percent to 4.7 percent.
The revisions come despite reports of a slowdown in foreign direct investment in Latin America, which reached $67 billion last year.
“FDI inflows into Latin America and the Caribbean, excluding the offshore financial centres, are expected to slow …
Subscribe to latin trade magazine
Click here to begin a subscription for Latin Trade magazine, available both in print and online.
Subscribe to lt.com
Click here to begin an online subscription to LT.com, with its extensive ranking, indices, and market intelligence on Latin America.
Subscribe to free Newsletter
Subscribe here to our free newsletter – getting the latest business headlines from Latin America in your inbox every day.
By Jerry Haar and Krystal Rodriguez
The dictionary definition of crucible is “an extremely …
Latin America is at the crossroads of a new economic paradigm. The region can no longer depend …