MercoPress. South Atlantic News Agency

Uruguay leads region's Economic Climate Index

The economic climate in Latinamerica dropped in April to its lowest level since 2003 according to the latest edition of the joint index from the Brazilian Getulio Vargas Foundation, FGV, and the IFO Institute from Munich, Germany.

The Economic Climate Index for the region dropped to 4.9 in April from 5.2 last January. October last year it stood at 5.6 and 5.9 in July 2007. However Uruguay, Peru and Brazil figure leading in the country index which saw Chile drop to sixth place. Uruguay figures with 7.6 points (down from 7.8); Peru, 7.4 (7.5); Brazil, 6.6; Colombia, 6; Chile, 6; Paraguay, 5.6; Venezuela, 4.8; Bolivia, 4.8 and Mexico, 4.8. Argentina which figured with 5.2 points is now ranked eleventh with 4.3, while Ecuador remains bottom of the list with 3.5 points. The overall picture was influenced by falling expectations which dropped from 4.7 last October to 4.1, although the current situation index remained practically unchanged from 6.4 last October to 6.1. The Economic Climate Index points out that the sub prime crisis in the US has had its impact on expectations. Even when the current situation remains relatively immune to the US pre-recession situation, the future outlook is relatively bleak and the "contagion hypothesis must not be discarded, although effects will be relatively less than during other similar situations".