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Doubts Emerge over Latin America Economies After the Boom Years
Article

Doubts Emerge over Latin America Economies After the Boom Years

GIS, 2013

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While Latin America came through the financial crisis relatively unscathed, complacency is a growing danger. Many of the region’s governments have not carried out the reforms necessary to sidestep a pending downturn. Economist Guillermo Perry argues that Latin American nations are failing to address the issues that threaten their continued economic growth. Although his article is somewhat light on detail as to the exact problems the diverse economies of the region face and the solutions they need, getAbstract recommends this short passage to businesspeople and investors with interests in Latin America. Forewarned is forearmed.

Take-Aways

  • Since 2003, Latin American economies have been growing faster on average than Western economies. However, Latin America’s growth rate is slowing down.
  • “High international liquidity and healthy domestic demand” are driving growth.
  • Trouble lurks, however. International liquidity could end, and demand could wane. Currency appreciation, slow growth and inflationary pressures present significant risks.

About the Author

Guillermo Perry is a nonresident fellow at the Center for Global Development. He is the former chief economist of the Latin America and Caribbean region at the World Bank.