Latin America well placed to survive slowdown

According to the Wall Street Journal, although the International Monetary Fund and the World Bank have stated current account deficits could affect the region’s future growth prospects, Latin America’s economies are well placed to survive upcoming slowdowns in Europe and the U.S. The booming economies in the region, such as Mexico and Brazil, are riding on high commodity prices and inflows from the bond market. Even with news of recession in Europe and the U.S., the region is forecast to grow, on average, more than 4 per cent this year and to decrease slightly from that in 2012. The IMF forecasts that Brazil, the largest economy, will grow 3.8 per cent in 2011 and 3.6 per cent in 2012, the same as Mexico, the second-biggest economy.