• Categories
  • Archives

Brazil to Profit in 2010 from Its Strength in Commodities and Energy

Corn field Good news for Brazil and its neighbors in Latin America that rely on agriculture and oil exports. A report released this week in Mexico by the inter American Development Bank, (IDB) forecasts a good year for LatAm countries exports of commodities and energy but a slower recovery for Central America and the Caribbean more dependent on tourism and remittances.

The report requested by Mexico was made public during the recent Rio Group summit in Playa del Carmen, assesses challenges and opportunities for Latin America in the current global climate, underlining the response of some of the region’s countries to the international slowdown, considered the worst in seven decades, but the situation is also positive “since the worst of the international crisis is behind.”

IDB president Luis Alberto Moreno said that 2009 overall was “positive” for Latin America and the Caribbean in a year when all the economies suffered the “full impact of the global recession” closing an expansion cycle which prevailed since 2003.

Nevertheless in Latin America and the Caribbean contrary to what happened previously the response was strongly “anti-cyclical” and above all “very effective.” As a consequence Latin American is going through an inflexion moment and even when the worst of the crisis is behind it still has “a significant number of structural challenges” ahead.

Looking into 2010 the report anticipates that Latin America is set to recover an “encouraging” growth rate level, although “it will depend on the circumstance of each country.”

Moreno said it will also be the moment to abandon “expansionist fiscal and monetary policies,” adding that almost all countries of the region “face serious fiscal challenges in the long term” and a greater competition among emerging economies can be expected as “we move out of the recession.”

In effect the fiscal situation of some Latin American countries “remains frail” particularly because of its dependency on the export of commodities.

However the report also points out to the fact that in recent years Latin America and the Caribbean has achieved “impressive” figures of poverty reduction and the region is en route to combat “structural poverty.”

Latin America and the Caribbean region GDP contracted 1.8% in 2009 according to the UN Economic Commission for Latin America and the Caribbean, Cepal, or 2.6% for the IMF.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

The World Debates in Brazil How to Be Energy Savvy for the Coming Decades

At the World Energy Council’s (WEC) Regional Forum, which began Thursday, March 2, in ...

Venezuela-Brazil Gas Pipeline, the World’s Biggest, Gets New Momentum

The final project for the gas pipeline (gasoduto) that is to link Argentina and ...

Brazilian UN Envoy Killed in Iraq Gets a Bronze Bust in Geneva

Sérgio Vieira de Mello, a Brazilian ambassador to the UN who was killed four ...

Brazil Wants to Nearly Double Value of Its Shoe Exports by 2010

Brazil's Export and Investment Promotion Agency (ApexBrasil) and the Brazilian Association of Shoe Manufacturers ...

IMF Revises Forecast and Says Brazil in 2010 Will Grow Over 3.5%

The director of the Western Hemisphere Department at the IMF, Nicolas Eyzaguirre told reporters, ...

Huge hole on Brazilian road

By Car, Air or Foot, Brazilians Can’t Escape Chaos and Crime

Brazil is dissolving like an ice cream exposed to the sun. The public authority’s ...

Lula Reminds Brazil’s Armed Forces Have no Saying in Selection of Defense Minister

Luiz Inácio Lula da Silva, Brazil’s former president, came out in full support of ...

Disarming Brazil

Nine out of 10 homicides in Brazil are committed by handguns, and contrary to ...

Brazil’s Landless Double Invasions to Become Part of Presidential Campaign

The recent sharp increase in activity by Brazil’s Landless Rural Worker Movement (MST), as ...