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LATAM Economy in 2015

Written by admin on . Posted in Americas, Caribbean, Central America, Marketing, Mexico, South America, U.S. Hispanic

Economy in LATAM

Economy in LATAM

2015 has begun, and with it we evaluate 2014 to make projections for this year, learn from our mistakes, and outline new goals. At the midpoint and the conclusion of each year, different organizations and experts publish studies and opinion pieces about the Latin American economy. We present a few of them here.

CEPAL’s Preliminary Overview of Economic Growth:

On December 2, the Economic Commission for Latin America and the Caribbean (ECLAC) published their preliminary overview of the economies of the region, stating that an estimated 2.2% growth is expected in 2015 – greater than the 1.1% growth of 2014. According to the ECLAC study, Central America, Haiti, and the Spanish-speaking Caribbean are expected to grow at a rate of 4.1%, South America at 1.8%, and the English-speaking Caribbean at 2.2%. Among the countries with the most growth this year are Panama, Bolivia, Peru, Dominican Republic, and Nicaragua. Detailed summary here.

Standard & Poor on Investment Grade:

In May 2014 the Argentinian economic news website infobae published an article containing several updated ratings from the agency Standard & Poor. The countries that achieve a rating higher than BBB reach investment grade. Among the countries that have reached “investment grade” according to Standard & Poor as of May 2014 are Chile, Peru, Colombia, Mexico, and Panama. It’s worth stressing that the ratings are updated constantly. Here we leave you with the link with the updated ratings.

Alicia Bárcena Ibarra on Challenges:

Alicia Bárcena, Mexican Executive Secretary of CEPAL published an article in the World Economic Forum on the challenges facing Latin America in 2015. According to a survey made by the World Economic Forum, the three challenges that Latin America will face in 2015 are 1) Corruption 2) Education and Skill Development 3) More inequality. Alicia Bárcena’s response was:

  1. Latin America is working to combat corruption, “strengthening institutions and higher law must continue to be a priority in the region’s government agenda.” Example: In 2012 Ecuador implemented a policy to increase police wages. As a result, Ecuador earned 4 points towards its Corruptions Perception Index.
  2. Investment in public and private education is necessary. Capital gains and infrastructure are a priority for the region. Technology, information, and innovation are not enough.
  3. A balance must be achieved among the executive, legislative, and judicial branches, and between civil society and the private sector. And in turn incorporate the informal economic sector into the formal sector.

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