At a conference in Chile last week, I heard a statement that left me thinking: “Latin America has always been the land of hope, and the land of frustration.”
The line, by former Chilean President Sebastián Piñera, couldn’t be more timely this week, as much of the region is facing a perfect economic storm, and a new era of disenchantment.
South American countries, which enjoyed an economic fiesta in recent years thanks to record high world prices for their commodity exports, are suddenly finding themselves simultaneously hurt by China’s slowdown, lower commodity prices, a flight away from developing countries by international investors, and a stronger dollar that makes their imports of manufactured products more expensive.
Complicating matters further, Brazil, the giant economic engine that pulls several of its neighbors, is suffering one of its worse economic and political crises in recent years. Its economy is expected to have a negative growth rate of about 2 percent this year.
For the first time in 25 years, with one exception in 2009, Latin America’s overall economic growth may be negative this year.
To continue reading this article click The Miami Herald
Etiquetas: Economy, Latin America
Share On Facebook
Tweet It
