Global Economic Outlook 2015: Emerging Latin America
Economic growth in the Latin American region is expected to recover to approximately % in 2015 after registering a slow growth of % in 2014. Subdued growth estimates can mainly be attributed to weakening of commodity prices, which lowered private investment in the region.
Domestic policy uncertainties, as well as weak investor sentiments toward Latin American economies mainly Brazil, Peru, Argentina, Venezuela, and Chile are likely to impede a healthy growth rebound in 2015.
A gradual rebound in economic activities in the US economy is likely to boost exports of Latin American countries. However, low domestic demand is likely to dampen regional trade growth in 2015.
Public investment by domestic governments in the region is likely to increase in 2015. This may help address infrastructural barriers, boost domestic sentiments, as well as attract foreign investment in the region.
About this report
Latin American growth faltered significantly in 2014; however, a gradual recovery is expected in 2015. The recovery in growth is expected to come from an increase in government spending on structural reforms. Domestic demand and investor confidence in the region are expected to remain subdued throughout 2015. Slow growth in export demand for mining products and weak commodity prices are expected to act as impediments to the region’s speedy recovery in 2015. A rebound in the United States is likely to boost Mexican exports; regional trade, however, is likely to remain restrained in 2015.
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