cglainfrablog

CG/LA Infrastructure's InfraBlog

Report: Growth in Latin America Expected to Pick Up

CAR101212C-1

JOC Staff | May 07, 2013 5:11PM EDT

Growth in Latin America and the Caribbean is set to pick up from 3 percent in 2012 to 3.5 percent in 2013, fueled by stronger external demand, favorable financing conditions and the effects of earlier policy easing in the European Union and the U.S., according to the International Monetary Fund’s “Regional Economic Outlook for the Western Hemisphere” report.

According to the report, medium-term risks for Latin America remain tilted to the downside. The key risk is a reversal of easy financing conditions and strong commodity prices that have prevailed since 2010.

The region would be particularly affected if a sharp slowdown in China or other key economies triggers a drop in commodity prices, the study showed.

Another risk is that lack of progress in addressing the medium-term fiscal challenges in key advanced economies could lead to a sharp increase in sovereign and corporate risk premiums, with a negative impact on global growth. Domestically, the risk of a deterioration of external and financial sector balance sheets has increased in some countries, the report said.

_____

Taken from The Journal of Commerce: http://www.joc.com/economy-watch/world-economy-news/report-growth-latin-america-expected-pick_20130507.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: