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Economist warns Latam to prepare for the chain effect of a Euro collapse

Friday, November 11th 2011 - 08:32 UTC
Full article 3 comments
Uruguayan economist Enrique Iglesias dire recommendations Uruguayan economist Enrique Iglesias dire recommendations

The Secretary-General of the Ibero-American Secretariat Enrique Iglesias, warned Thursday that the EU crisis could reach as far as Asia and Latin America, and that preventive measures should be taken.

“We all live on planet earth, so if the crisis persists, it will definitely hit us”, Iglesias said during a summit in Madrid, Spain.

Likewise, Iglesias remembered the importance for Latin America of the goods demand coming from Asian markets, “If Europe affects Asia, then Latin America will be in trouble.”

“Both the demand and prices of raw materials could be affected in Latin America, plus there could be a negative impact in terms of investments”.

Furthermore, Iglesias remarked that “we are heading to a much more competitive world in which LatAm’s strength is the integration of its members. Currently there are more than 500 “multi-latin” companies.”

To end, Iglesias said “Latin America has a great chance to play an important role in the world markets”, and concluded, “So far there are countries like Brazil, Mexico, and Argentina already participating in the G20.”

Categories: Economy, Latin America, Uruguay.

Top Comments

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  • briton

    Perhaps you all could increase you imports, thus allowing Europe to increase their exports,
    So in theory Europe can export its self out of recession,
    And the rest of the world can grow, more by importing more wealth,
    this way helping each other, or as the man says preventive measures should be taken, some say its not as bad as some governments make out, and its only the rich that are panicking, either way, something has to give, before it all comes Tumbling down, and the world starts again perhaps,
    just a thought .

    Nov 11th, 2011 - 03:34 pm 0
  • GeoffWard2

    It's not so much the *direct* effect of a Euro$ collapse,
    it's the indirect effect on world trade caused by Europe being China's biggest trading partner.
    With buying of China's manufactured products doing a long-term European nose-dive, massive Chinese dumping may be what happens to South America.

    The destruction of South American industry might be the price SA has to pay. Luckily there is still a big US industrial investment in some SA countries, so things will still be made and consumed, just not made by South American companies.
    In such circumstances the restrictions on the movement of profit out of the continent may be unsustainable.
    (just thinking aloud and open for criticism)

    Nov 11th, 2011 - 11:23 pm 0
  • briton

    . that’s ok.
    But if euro collapses this will effect everyone,
    But surely S/A can help themselves by importing more and exporting , in return this help to stabilise them,
    but of course the Europeans must without doubt must sort their immediate mess out first, the Germans wont let the ECB use its money, and the Americans are worried that it may, just use this as an excuse to print even more money,
    So the news says anyway.

    Nov 12th, 2011 - 12:40 am 0
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