Dominican Economy Rebounds with 6% Growth this Year
July 21st, 2010Dominican Republic’s economy will grow 6 percent this year as the recovery begun in the second half of 2009 strengthens, affirmed the UN Economic Commission for Latin America and the Caribbean (Cepal) in its regional Economic Study 2009-2010 disclosed today.
The study also says Latin America’s economy will grow 5.2 percent this year, and a 3.7 percent increase of the GDP per inhabitant
“The growth is higher than anticipated, but the performance is very heterogeneous within region,” said Cepal executive secretary Alicia Bárcena when announcing the figures.
The study stresses the growth in Mercusur countries and those “which had a greater capacity to implement policies and those with strong internal markets, boosted by the regional space and the high participation in the exports to Asia.”
According to the report Brazil will lead South America growth this year with 7.6%, Uruguay (7%), Paraguay (7%), Argentina (6.8%) and Peru (6.7%), followed by Panama (5%), …
Honduras’ Deputy Foreign Minister Alden Rivera announced that former United States president Bill Clinton and Mexican businessman Carlos Slim will travel to Honduras on November 4-5, 2010 to help encourage private investment.
Honduras is among the most severe in Latin America. Approximately 53% of the population is rural, and it is estimated that 75% of the rural population lives below the poverty line, unable to meet basic needs.
The country still has high rates of population growth, infant mortality, child malnutrition and illiteracy. These and other social and economic factors reflect its status as the second poorest country in the Western Hemisphere, after Haiti.
“The visit is aimed at promoting the country as a tourism destination to the world, thereby attracting foreign investors,” said Mr. Rivera.
Mr. Slim is listed by Forbes Magazine as the world’s richest person, with a net worth estimated at US$60.6 billion.
Mr. Clinton oversees the William J. …
When Free Market Ideals Transform Latin America Nations
May 27th, 2010“Ideas have consequences” says Giancarlo Ibárgüen, Executive President of Francisco Marroquín University, who sat down with us to talk about the necessary ingredients to stimulate free market competition – especially in Latin America.
U.S. Secretary of State Hillary Clinton, in an speech today in Washington D.C., applauded countries in the Americas for sustaining economic growth during the global recession, expressed her vision of the Western Hemisphere becoming “a model” for cooperation around the world and singled out Brazil for its long-term commitment to closing wide economic inequalities.
The wide-ranging speech provided another indication of the growing closeness between the U.S. and countries in Latin America and the Caribbean and the leadership Clinton has shown in understanding the deeper challenges and issues with individual countries.
Clearly economic inequality was a major theme. “We’re really trying to work with governments and the private sector to increase economic opportunity,” she said.
U.S. Says Time has Come to Allow Honduras Back into OAS
May 7th, 2010WASHINGTON (Reuters) – The U.S. government said on Thursday it was time for Honduras to be readmitted to the Organization of American States, which suspended the Central American nation after a coup last year.
The creation this week of a truth commission to investigate events surrounding the June coup that ousted former President Manuel Zelaya was a sign that his elected successor, President Porfirio Lobo, was committed to national reconciliation, a U.S. State Department official said.
“It is time for them to be reintegrated,” Deputy Assistant Secretary of State for Western Hemisphere Affairs Craig Kelly told Reuters at a Latin American investment summit.
The OAS is a hemispheric forum that groups all democratic countries in the Americas.
Several Latin American governments, including Venezuela and Brazil, have yet to recognize Lobo’s legitimacy as president, while international human rights groups say attacks on Zelaya supporters have continued since Lobo took office in January.
Kelly said …
By Nouriel Roubini and Bertrand Delgado
We maintain that Latin America–LatAm–will expand in 2010 after contracting more than 2% in 2009. Better global growth prospects and solid commodity prices will support growth in the region. However, differentiation in domestic demand dynamics will play a key role.
We have revised upward our growth expectations for Brazil, Mexico, Argentina and Peru; maintained our projection for Colombia; and lowered them for Chile (due to the earthquake) and Venezuela. Mexico will benefit the most from the upward revisions to our U.S. growth outlook, while domestic demand will likely catch up in Q2 2010. Meanwhile, Brazil’s stronger-than-expected domestic demand will be enhanced by the relatively benign external backdrop.
Inflation will likely climb in 2010 but it will remain within the central bank inflation target ranges, except for Mexico. In most countries, high food prices, as a result of adverse weather conditions, have continued to deteriorate inflation …
China Makes its Mark on Latin America
April 19th, 2010Travel through pretty much any country in Latin America and you see the influence: a football stadium for Costa Rica, scholarships for Venezuela, a car factory for Uruguay, billion-dollar loans for Brazil. All from China.
The Asian superpower has moved into a region the US once considered its backyard and discreetly established itself as a major economic player.
There are new and expanded embassies in Caracas and Brasilia, Mandarin language classes in La Paz and Buenos Aires, Chinese tourists in Machu Picchu, red flags with five gold stars fluttering from tankers steaming through the Panama canal. Last week President Hu Jintao travelled to Brazil to sign, among other things, a five-year strategic plan between China and South America’s biggest economy.
China has supplanted the US as Brazil’s biggest trading partner, a boom repeated across the region. Once almost …
One Small Step: Cuba Liberalizes Barber Shops – See the Video
April 14th, 2010VIDEO: The Cuba government is allowing Cuban citizens to directly own and operate barber shops. Is this the beginning of something big? Click here for video
Everest Analyst Says: Pursue New Lower Costs Labor Pools Now
March 25th, 2010By Kirk Laughlin
Pursuing new lower cost sourcing destinations is a prudent move for outsourcing customers trying to beat back recent currency volatility and continue exploiting cost arbitrage, advises an Everest Research Institute analyst.
“As companies are starting to expand, we’re seeing interest in areas beyond India and the Philippines,” says Anand Ramesh, a research analyst at Everest Research, who notes that on the global stage, places like Egypt, Kenya and Colombia are more frequently popping up on the radar as emerging destinations as companies diversify their sourcing portfolios to manage currency risks.
In Latin America, some of the countries that are seen as emerging – and increasingly popular – lower-cost options include Nicaragua, Honduras, El Salvador, Peru and Colombia.
Mexico’s Economy Could Rebound with 5 Percent Growth this Year
March 22nd, 2010Mexico’s economy, recovering from its worst recession in decades, could grow as much as 5 percent in 2010, the country’s central bank head said on Sunday, raising his outlook in line with analyst views.
Central Bank Governor Agustin Carstens told an annual Inter-American Development Bank meeting in the Caribbean resort of Cancun that Mexico’s economy could grow between 4 percent and 5 percent this year.
“We are in a strong recovery process … it’s very likely that Mexico will end this year growing between four and five percent,” Carstens told reporters. “Aggregate demand is growing faster in Mexico. That means the output gap will probably close down faster than we anticipated some months ago.”
In January, Carstens said Mexico’s economy would likely grow between 3.2 percent and 4.2 percent in 2010. In February he told Reuters he shared the finance ministry’s view that 2010 growth looked set to come in around 3.9 percent.
Economists …
