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Latin America’s financial sector needs to prepare for new risks

Alain Ize's picture

Finances

In stark contrast with Latin America’s rich history of financial crises and turbulence, this time around the region’s financial systems have weathered the current global volatility and the Great Recession rather well.

Why should then one want to conduct an extensive study on financial issues in Latin America and the Caribbean? We think the study, Financial Development in Latin America & the Caribbean, the Road Ahead, is timely because the region still faces substantial developmental gaps and issues that require attention.

Latin America’s growth prospects: Made in China?

Tatiana Didier's picture

Latin America's Growth prospects:Made in China?

Global turmoil. Growing prospects of another recession. Crisis in the Eurozone. China’s role as a global growth and recovery engine thrown into question.

The current situation looks worrying enough as it is for Latin America –and the rest of the world for that matter- but the region’s growth prospects should be looked at beyond the current juncture and on the merits of its long-term strengths.
 
Here’s why. The last ten years or so have been very good for many countries in Latin America and the Caribbean. They have witnessed the consolidation of a stable and resilient
macro-financial framework, relatively high growth rates, and advances in the equity agenda.

This new economic face of the region was perhaps most clearly portrayed by a rather robust performance, especially of South American countries, in the context of the recent global crisis. In effect, compared to the middle-income country average, the region’s recession in 2009 was relatively short-lived and, with the notable exception of Mexico, remarkably mild, which helped to make its recovery in 2010-2011 stronger.