Latin America to grow less than previous years
Expansion to slow down, but with significant differences by country
The forecast for Gross Domestic Product (GDP) made by banking group BBVA, indicates that there will be positive growth in Latin America this year: Peru 5%; Colombia 3%; Venezuela 2.6%; Brazil 2.5%; Chile 2.3%; and Argentina 1.9%.
The forecast for GDP growth in Latin America is 1.8% in 2009, after having reached 4.4% in 2008.
In a presentation made by BBVA in Lima, Peru at the end of February, they indicated that expansion in Latin America will slow down, but with significant differences by country.
Peru has an anti-crisis plan already in motion, focused at short-term recovery. Colombia has a solid financial system and its macroeconomic management is working well. The strongest impact of the financial crisis will be felt in Argentina due to internal issues and in Venezuela due to its dependence on oil.
Brazil and Chile are affected by reduced international trade, since they are important exporting countries. Mexico is hurting because of its exposure to the US, but it has some strengths which will prevent a stronger impact, according to BBVA studies.