Latin America's fast growing decade is coming to an end, anticipates IMF report

Friday, April 25th 2014 - 05:36 UTC

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The IMF’s Regional Economic Outlook for the Western Hemisphere, released on Thursday in Lima, Peru, projects regional growth of 2½ percent in 2014, down from 2¾ percent in 2013. Weak investment and subdued demand for the region’s exports held back activity in 2013, as did increasingly binding supply bottlenecks in a number of economies. For 2015, the IMF projects a modest pickup, to 3%. Read full article

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ChrisR
Who’d have thunk it?

“ The key risk is a sharper decline in commodity prices caused by weaker demand from some of the major commodity-importing economies, especially China.”
TGW
“gradual and orderly normalization of US monetary policy should be contained for most of the region, increased capital flow volatility also remains a risk.”

So in a nutshell prices are dropping and there will be no money from the dastardly “International Investor’s” to allow countries to fund alternative measure to replace the lost incomes and in The Dark Countries case the overblown tax revenues.

This is when the bastard Tupas communists in Uruguay who have fucked the economy from now for the next three generations at least will fold under the relentless pressure of having no money to pocket for themselves.
Apr 25th, 2014 - 11:07 am - Link - Report abuse 0
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CabezaDura2
It had to come to an end at some point...

Cachanosky or De Pablo said in 2012 that at mid decade the prices will plateau and then decline progressively.

The mentality of we are “condemned to success” in Argentina of the last decade has being very negative. It generated a mentality of no need for efficiency no inovation and a generalized idea that there is no problem in having a huge State taking care of everything and taxing the farmers for the would always be rich.

900 bn USD came into the coffers in the last 10 years and now they are crapping the barrel to find USD to pay for fuel. Pathetic.
What a waste.
Apr 25th, 2014 - 11:54 am - Link - Report abuse 0
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Condorito
@CD
the cyclical nature of commodity prices has been observed long before 2012. When prices started ramping up in 2003 the Chilean government made it policy to put the excess in to a kind of sovereign wealth fund to be used on the down side of the cycle.

Norway has been doing this for decades and now has over $800 billion in their wealth funds .... if only we had oil!

Argentina has managed to do completely the opposite. They have gone through the boom and managed to come out the other side with reserves critically low and no wealth fund. I agree it is a total waste.
Apr 25th, 2014 - 12:18 pm - Link - Report abuse 0
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CabezaDura2
3

I agree but most of the Argentines would answer to you that China unlike a limited need for copper, has a dependency need for food and is demanding more of it ( As if China wasn't the worlds most largest food producer and it came to have 130 million ppl in the first place just by buying soy from other countries)

They got it all wrong, China and India if need be they will return to energy rich meals like rice, wheat and restrict on protein demand which comes from soy bean based feed for poultry and swines in China.

What these guys would have wanted is a SOY BEAN OPEC
Apr 25th, 2014 - 12:32 pm - Link - Report abuse 0
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