A country-by-country look at Latin America’s macro economic outlook this year.
BY LBC STAFF
Although Latin America’s economy should slow down compared to last year, it will still be one of the world’s shining stars.
Latin America’s economy should expand by 3.6 percent this year, according to estimates from both the International Monetary Fund (IMF) and The World Bank. That compares with an estimated 3.3 percent globally and only 1.2 percent in advanced economies, IMF projections show.
Much depends on developments in China, which is a key buyer of raw materials from Latin America.
“China’s influence in driving Latin America’s growth has increased sharply since 2008, so whatever happens in China matters for Latin America more than ever,” JP Morgan says in a recent research report.
The IMF estimates the Chinese GDP will expand by 8.2 percent this year.
However, global commodity prices can also be impacted by slower demand in Europe, which is seeing a growing economic crisis.
“More than other regions, Latin America and the Caribbean would be vulnerable to the kind of sharp decline in commodity prices that might accompany a major credit event in high-income Europe,” warns The World Bank in a new report.
“A sharp deterioration in commodity prices would reduce incomes and fiscal space in commodity exporting countries and, at the same time, place their current account and external financing needs under stress. Countries heavily reliant on commodity exports would be hit hardest, while commodity importing countries would see modest gains.”
Argentina’s economy, Latin America’s third-largest, will likely grow by ...
Keywords: Argentina, Bolivia, Brazil, Chile, Costa Rica, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela