EXCLUSIVE The beginning of the end for Mercosur
Argentina's nationalization of a Brazilian held rail system could have serious consequences
Dysfunction within Mercosur, especially disputes between Argentina and Brazil, is nothing new. The bloc long ago abandoned its founding mission of a common market with the free movement of goods, services, and currency across borders. More often the story today is of protectionism, trade disputes, and diplomatic rows. Latin Business Chronicle reports.
Foreign direct investment to Latin America reaches 3 percent GDP
Investments in mining drove growth in many countries in the region
Foreign direct investment to Latin America grew by $20 billion in 2012 to $173 billion, and reached 3 percent of the region’s gross domestic product. These are the findings of the most recent FDI-GDP ranking by Latin Business Chronicle. The index measures foreign investment in 19 countries and its influence on their GDP, Latin Business Chronicle reports.
Mexico hopes Chinese tourism to increase
Tourists spent $12.7 billion in Mexico last year
Mexico hopes the visit by Chinese President Xi Jinping to the country’s most emblematic Mayan ruins Thursday (left) will spark a mass influx of tourists from China, the world’s largest tourism spender. But officials and industry insiders said it’s still a long way before Mexico can capitalize on the opportunity, The Boston Globe reports.
Brazil rating outlook cut to negative by S&P on sluggish growth
Move threatens to end a decade of rating upgrades for Latin America’s biggest country
Brazil’s credit rating outlook was cut to negative by Standard & Poor’s, which said sluggish economic growth and an expansionary fiscal policy could lead to an increase in the government’s debt levels. The new rating is two levels above junk and in line with Mexico and Russia, from stable. Brazil’s economy expanded 0.9 percent last year, Bloomberg reports.
Ecuador April crude exports revenue fall 15 percent on month
The country's three state-owned oil companies produced 11.5 million barrels in April
Ecuador's crude-oil export revenue totaled $987 million in April, down 15 percent from March, the country's central bank said. In terms of volume, Ecuador exported 10.3 million barrels of crude oil in April, a 13 percent decrease from the previous month. Crude oil is Ecuador's main export, and its main buyers are the Caribbean, the United States and Asia, The Wall Street Journal reports.