ID :
27368
Thu, 10/30/2008 - 10:59
Auther :
Shortlink :
https://oananews.org//node/27368
The shortlink copeid
Latin America not immune to crisis fallout, growth to slow: IDB head
TOKYO, Oct. 29 Kyodo - The president of the Inter-American Development Bank said Wednesday that Latin American and Caribbean countries will not be immune to the fallout from the current financial crisis engulfing the world and that the region's economic
growth will certainly slow.
Visiting IDB chief Luis Alberto Moreno said in an interview with Kyodo News,
''There will definitely be a slowdown in Latin American economies because of
downward pressures on the Latin American growth from the combination of
liquidity (problems), the slowdown of global economy and as a consequence of
dropping commodity prices.''
Latin American economies, many of which are rich with natural resources, had
been growing at a rate of over 5 percent annually when inflation was under
control, Moreno said.
The former Colombian diplomat said the region's growth rate would be around 4.5
percent this year and slow to 2.5 to 3 percent next year.
He said smaller Latin American and Caribbean economies that depend on tourism
and remittances by expatriates will especially have a hard time in adapting to
shocks from the crisis, with expected declines in the number of U.S. and
European tourists and in the amount of money sent from overseas.
However, the chief of the 47-member IDB said most of Latin American economies
have ''been able to manage macroeconomic stability'' and are ''better
prepared'' to respond to the crisis, because unlike the 1980s, they are not the
epicenter of the turmoil.
Moreno also said Latin American financial institutions have generally been in
good condition, as they do not have the so-called ''toxic assets'' or
securitized financial products related to the U.S. subprime mortgages.
The IDB chief forecast inflation pressures will increase again in the
foreseeable future because there has been a huge injection of liquidity in
money markets to weather the current credit crisis. ''No question that
inflation will be a challenge -- not just now but sometime ahead,'' he said.
Moreno is visiting Japan to attend a seminar in Tokyo to promote investment of
Asian companies in Latin American and Caribbean economies.
growth will certainly slow.
Visiting IDB chief Luis Alberto Moreno said in an interview with Kyodo News,
''There will definitely be a slowdown in Latin American economies because of
downward pressures on the Latin American growth from the combination of
liquidity (problems), the slowdown of global economy and as a consequence of
dropping commodity prices.''
Latin American economies, many of which are rich with natural resources, had
been growing at a rate of over 5 percent annually when inflation was under
control, Moreno said.
The former Colombian diplomat said the region's growth rate would be around 4.5
percent this year and slow to 2.5 to 3 percent next year.
He said smaller Latin American and Caribbean economies that depend on tourism
and remittances by expatriates will especially have a hard time in adapting to
shocks from the crisis, with expected declines in the number of U.S. and
European tourists and in the amount of money sent from overseas.
However, the chief of the 47-member IDB said most of Latin American economies
have ''been able to manage macroeconomic stability'' and are ''better
prepared'' to respond to the crisis, because unlike the 1980s, they are not the
epicenter of the turmoil.
Moreno also said Latin American financial institutions have generally been in
good condition, as they do not have the so-called ''toxic assets'' or
securitized financial products related to the U.S. subprime mortgages.
The IDB chief forecast inflation pressures will increase again in the
foreseeable future because there has been a huge injection of liquidity in
money markets to weather the current credit crisis. ''No question that
inflation will be a challenge -- not just now but sometime ahead,'' he said.
Moreno is visiting Japan to attend a seminar in Tokyo to promote investment of
Asian companies in Latin American and Caribbean economies.
