Latin America is expected to see another good year in terms of macro economic stability. GDP is set to grow at relatively good levels, while inflation remains at manageable levels overall.
Latin America’s GDP is expected to grow by 4.3 percent this year, the International Monetary Fund predicts. The World Bank and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) are slightly more optimistic, forecasting growth of 4.5 percent and 4.9 percent, respectively.
The IMF forecast puts Latin America behind the world average of 4.8 percent as well as regions like Africa, Asia and Eastern Europe, but ahead of the United States and the European Union.
Meanwhile, Latin American inflation is expected to see an overall rate of 5.8 percent this year, an increase from last year’s rate of 5.3 percent and the first increase since 2003. While Argentina and Venezuela stand out in terms of having the worst inflation, also traditionally stable economies like Brazil, Mexico and Chile are seeing inflation growth this year. Only ten countries in Latin America will post a decline in inflation in 2008, according to a Latin Business Chronicle analysis of IMF forecasts.
Venezuela is expected to post the fourth-highest inflation worldwide after Zimbabwe, Eritrea and Myanmar, according to the Latin Business Chronicle analysis.
Latin America’s inflation rate this year will be higher than the world average of 3.6 percent, the rates for the United States and the European Union and regions like developing Asia and Eastern Europe, but lower than Africa and the Middle East.
Here is a country-by-country breakdown of 19 economies in Latin America and the Caribbean:
Argentina’s economy, the third-largest in Latin America, is expected to grow by 5.5 percent in 2008, a slowdown compared with the estimated 7.5 percent growth in 2007 and 8.5 percent in 2005, according to the IMF. ECLAC is...
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