MercoPress. South Atlantic News Agency

Latam well positioned to face global crisis, says World Bank

Latinamerica is well positioned to face risks in the event of a global financial recession, according to the World Bank vicepresident for Latinamerica and the Caribbean, Pamela Cox who this week visited Uruguay.

"The region is best prepared to confront external shocks from the financial markets' crisis in the United States and the deceleration of economic growth" which has also extended to Japan, Europe and emerging markets she added. This new scenario is the result of four years running of sustained growth above 5%, "the healthiest spell" experienced in the region since the seventies. Ms Cox together with the World Bank delegate for Argentina, Chile, Paraguay and Uruguay Pedro Alba made a presentation about the global economic and financial situation before members of the Uruguayan congress. Although there are serious risks of a global recession, even when the situation so far "remains fluid", what can be expected as a result of the financial crisis is a drop in demand and the subsequent fall in commodity prices, forecasted Ms Cox. But she emphasised that regional governments have learnt to take advantage of favorable external circumstances to reduce macroeconomic and financial weaknesses. "Public debt has fallen considerably and monetary reserves in the region are equivalent to seven months of imports". Finally she underlined the "significant reduction in poverty rates" in Mexico, Argentina, Colombia, Chile and Brazil, as well as a diminishing gap in incomes "reverting the tendency of the previous decade".