Latin America
The deterioration in the Economic Outlook in Europe, which will have an impact in the extra-European economies, continues to be bad news for Latin America that sees how the international scene worsens increasingly generating economic stimulus programs launched by the Latin American countries not to achieve pre-established objectives. The lowest level of activity of the European and global economy will involve a lower level of demand for goods and Latin American services and greater competition from abroad for goods and tradable services within markets Latin American. The worst prospects for global economic growth may increase the level of uncertainty and volatility, situation that will affect the financial markets of Latin America, reducing the arrangement to generate funding, causing capital flight and increasing exchange rate volatility. If you read carefully the projections made by the European Commission for this year, we will find that Latin America waiting a more hostile economic context, so it must strengthen its protection of foreign competition and promote stronger domestic demand to avoid a deeper impact than anticipated on the level of economic activity. Latin America will face a challenging 2009, which will also be full of opportunities for the region. It is that if Latin America can exit without major complications of this crisis, will it reset in good way in the global economic context, improving its image and having demonstrated that he has truly solid macroeconomic fundamentals. This without doubt, turn to the region, highly attractive for foreign investment.
