A few days after the first sunrise of 2012 kissed the shores of Latin America, it is natural to ask: What does the New Year hold for the region’s economies, especially with Europe still under stress?
For sure, a dimmer economic environment, here and abroad. Growth has softened in the larger countries of the region. Looking North, the United States is growing a bit more, but elsewhere activity is softening, including in China—an increasingly important customer for the region’s commodities.
Perhaps more importantly, global financial markets are still strained, because many questions about advanced economies remain unanswered: (more…)
Filed under: Economic Crisis, Economic outlook, Emerging Markets, Europe, Finance, Financial Crisis, growth, International Monetary Fund, Latin America | Tagged: balance sheets, banking assets, commodity prices, confidence, dollarization, fiscal policy, global financial crisis, global financial markets, IMF, iMFdirect, International Monetary Fund, liquidity conditions, monetary policy, Nicolás Eyzaguirre, weak growth, year ahead | 5 Comments »