Global Economic Tracker—Insights and Trends (GET-IT)—Emerging Latin America Q2 2013
- ID: 2630022
- August 2013
- Region: Global, America, America (exc North), Latin America, United States
- 41 Pages
- Frost & Sullivan
The Latin American region is expected grow at an average rate of 3.5% in 2013. A fall in global demand and commodity prices has hit the region badly. However, governments in the region are making efforts through trade alliances and stimulus packages, to spur the growth in the region.
Trans-Pacific trade alliance talks, which are likely conclude in the second half of 2013, act as a growth driver for Chile and Mexico. Similarly, the Colombian Government's $2.7 billion stimulus package can build the growth momentum in the region. Falling US and Chinese imports, the two main markets for the Latin American economies, is a concern at the moment.
- The export-centric Latin American region experienced an overall sluggish growth in Q1 2013 due to weak global demand, a strong currency and supply bottlenecks.
- Growth in export driven industrial and economic activities in the region is expected to remain low till Q2 2013 due to persistent recession in Europe and sluggish growth in China, which are Latin America's prominent export markets. Governmental efforts are likely to accelerate the growth momentum in H2 2012, owing to social welfare and infrastructure related stimulus packages, especially in Colombia.
- Foreign trade is expected to escalate in the latter part of the year due to strengthening of existing trade alliances such as Pacific Alliance and formation of new trade alliances such as the Trans-Pacific Partnership (TPP). The main focus of these treaties is to promote trade with Asian economies, in order to boost productivity amidst concerns of slowdown in the commodity boom.