Business and Finance Information

Archive for February, 2010

The economic growth in Latin America in 2011 will be strong even if will fall below that of 2010, considered the largest grouping of private banks in the world. However, the low visibility does not detract from the performance that the region has had as one of the engines of global economic recovery and will be mostly clear this year.

Projections by the Institute of International Finance (IIF), Latin America’s economy in 2010 will grow at a rate of 4.8 percent of GDP, almost double the projected worldwide.

The strong performance this year will be evident in private capital flows to the region, estimated to reach up to 177 billion dollars.

“The ability to maintain capital flows and close this year with strong momentum in almost all major economies in the region, is a tribute to the macroeconomic foundation,” said Charles Dallara, IIF Managing Director.

In an interview, Dallara said the cases of Mexico, Chile and Brazil, which in the past 15 years have implemented contra-cyclical policies that allowed them to address the current crisis in a better position.

The good performance of the Latin American economy will slow in 2011 however, when the IFF projections suggest that this will be around 3.7 percent.

The decline is attributed in part to end incentive programs implemented in many countries to address the crisis, and that in view of Dallas, will lead to another challenge.

The market expectation is that these measures will lead to medium-term fiscal policies aimed at stimulating the economy. Read the rest of this entry »