Latin America

Article Abstract:

The Asian financial crisis has underlined the need for Latin American economies to be more prudent in their monetary, exchange rate and fiscal policies. Inflation and economic growth are likely to drop in Latin America in 1998 if demand management is tighter. Venezuela and Brazil could be affected by their high debt service costs. Brazil can make little progress in reducing interest rates until the budget deficit is controlled more tightly. Argentina and Brazil and likely to see reductions in economic growth rates, and Venezuela's fiscal problems could risk capital flight. Meanwhile, Mexico's economic fundamentals are strong and inflation is falling.

Prices, Inflation (Finance), Inflation (Economics)

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Latin America

Article Abstract:

Latin American governments look set to continue their prudent approach to exchange rate, fiscal and monetary policies. This should lead to a continued drop in inflation and stronger economic growth. Latin America is vulnerable to shocks due to the weight of foreign capital and the importance of commodity exports for some countries. Argentina and Brazil are both seeking to curb their budget deficits. Economic growth is slowing in Chile and Colombia, but strengthening in Peru. Venezuela is aided by a rise in petroleum prices, and Mexican exports are helping fuel recovery.

Fiscal policy

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Latin America: international economy

Article Abstract:

Output in Argentina is predicted to rise by about 5.5% in 1997, with government revenues improving due to stronger domestic demand and tax increases. Output in Brazil is forecast to increase by about 3.5% in 1997 with the industrial sector leading growth. Chilean real GDP growth slowed to 7% in 1996 and is predicted to slow further in 1997. Real GDP in Venezuela is predicted to rise by 4% in 1997 and in Mexico will see domestic demand boost activity during 1997.

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