Brazil, Chile, Colombia and Peru are in the process of economic recovery, while Argentina, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela are in a recessive phase according to a report released Wednesday and jointly drafted by Brazil’s Getulio Vargas Foundation and the University of Munich.
The report adds that overall Latinamerica is in the midst of economic recovery with good prospects for the coming six months. The Economic Climate Index, ICE, shows the region with a surging tendency in July, close to the four points after having plummeted to its lowest historic record last January with 2.9 points.
The Current Situation Index, ISA, also advanced but remains at an unfavourable level with 2.6 points. However even when “the current situation is bad, prospects for the comings six months can be considered good” adds the report.
The combination of a positive ICE and a poor ISA indicates “the region is abandoning the recessive process and is entering the recovery phase of the economic clock”.
Regarding economic climate ranking, Peru leads with 5.3 points followed by Brazil, 4.7; Uruguay, 4.6; Chile, 4.3 and Paraguay, 3.5. The list is based on the average ICE of the last four quarters. Brazil has moved to second place, while Uruguay, Paraguay and Bolivia have lost positions.