Financial crisis will hit Lat America anyway

· Economics, Latin America

Even if countries like Argentina, Brazil, Chile, Mexico and Peru have presented big programs to cushion the world recession, it will not be enough to the strong 2009 effects on the regional economies, suggested Standard & Poor’s (S&P).

Tax accounts will be deteriorated in most of the countries due to the slow of growing, the fall in the incomes of raw material and the increase in the costs of financing.

The global crisis will finish to weaken the Latin American currencies and slow its economics. In this way, the economical organization predicted that the GDP for Latin America in 2009 will be the half of what it was in 2008 stated in 4.8%. Therefore, the 2009 GDP could reach only 2.1%, according to the experts.

It said also that the most vulnerable countries to the prize of commodities will be Argentina and Venezuela, two countries that have implemented economical policies that have demotivated the foreign investment in the past years. Panama and Peru will have the highest growing in 2009.

The following is a list of numbers in what will be the GND for the biggest Latin American economies for 2009 according to Standard & Poor’s (S&P):

  1. Mexico: It will have a reduction in its GND of 0,5%.
  2. Brazil will grow 2,5%.
  3. Argentina: 2,5%.
  4. Chile: 2%.
  5. Colombia: 3%.
  6. Venezuela: 3,3%.
  7. Perú: 6%.
  8. Panamá: 5,5%,.

1 Comment

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  1. The impact of the global weakening will depend on “cushion” programmes, and the behavior of main economic actors. Firms in the finantial market, and massive consumption in Peru for example, are stopping the price slowdown, and pushing upwards the dollar. Deffinitivelly, this trends will change the number of economic growth. Hope to maintain it above 5%.

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