U.S. financial crisis after the close of Latin America suffered Chiyuzhiyang. Right now, the economic situation in Latin America has not yet appeared severe turbulence, but the spread of financial crisis has sounded the alarm.
First of all, Latin America's stock and foreign exchange markets by the first financial crisis. The last 3 months, the stock market has been in Latin America as Europe and the United States stock market turbulence. To prevent the dollar on the over-appreciation of national currency rise to a serious inflation, Latin America, many countries have the central bank to sell U.S. dollars. Mexico and Brazil have reached the foreign exchange markets over the past 10 years, the biggest decline, Mexico's central bank has to sell at least 12,500,000,000 U.S. dollars, the Brazil has to sell U.S. dollars and plans of action.
Second, Latin America's mineral, oil and agricultural exports, such as the rapid development in recent years, such as Chile's copper, coffee in Colombia, Brazil and Argentina's meat and grain, Venezuela and Mexico, and Ecuador's oil. However, its main export to the United States and Europe, the regional economic recession, weak demand greatly impact on the exports of Latin American countries.
International Monetary Fund warned that the international market prices of raw materials is the Latin American countries are facing one of the major problems. The organization estimated that for every raw material prices decline by 10%, that means Latin America's GDP declined by 0.5%.
In addition, some Latin American countries, second only to income remittances of export earnings. United States and Europe, Latin America is the main source of remittances, Europe and the United States means that economic difficulties in Latin America remittances revenue. According to the World Bank forecast a few days ago, hit by the financial crisis, Latin America and the Caribbean this year, remittances of revenue is estimated at 67,500,000,000 U.S. dollars, only 1.5 percent more than last year, the growth rate was significantly lower than last year's 5.2 percent.
The World Bank said that since the financial crisis in the United States and led to a marked slowdown in economic growth, Mexico, Guatemala, Brazil and other countries of the revenue from remittances declined. Overall, this year, the inflow of remittances in the region in its gross domestic product last year, will share the 2% to 1.8%.
According to the 2001 Nobel Economics Prize winner Joseph Stiglitz, as is currently the most dependent on the U.S. economy of Latin American countries, Mexico and Colombia by the financial crisis the most serious. Second, the Central American countries because of close trade with the United States, will also be one of the main victims. The financial crisis for most South American countries less affected.
Moreno-American Development Bank predicted that Latin America suffered little effect on the economy this year, the growth rate will remain at 4.4 to 4.5 percent between. However, according to the International Monetary Fund forecast economic growth in Latin America next year will slow to 2.5 percent, Mexico's economic growth this year will fall to 1.9 percent next year, will be further reduced to a negative 0.9 percent.
However, in the face of the financial crisis, most Latin American countries are not very worried about this and the Latin American economy in recent years to adjust their own economic and trade relations between China and Latin America and the rapid development are inseparable.
From the internal factors, has gone through many financial crisis, in recent years, most Latin American countries have strengthened macro economic control, and Latin America for 5 years, rapid economic growth, markedly enhanced anti-crisis capacity. For example, in Latin America in the past from the present budget deficit into a surplus during the transition period; foreign exchange reserves are double-digit growth in recent years, 4 years, over 3 times as high as more than 4600 billion U.S. dollars; external debt to GDP ratio significantly reduced , The dependence on foreign capital has been gradually reduced, such as Brazil at the beginning of this century or one of the largest debtor, its foreign exchange reserves now more than foreign debt; on the international market demand for raw materials and high prices in recent years, and effectively support the Latin American economy Sustained and stable development.
From external factors, the emerging economies of Latin American economic development of a substantial increase in support, making the economy in Latin America, unlike in the past as over-reliance on Europe and the United States economy. Latin America and other regions outside Europe and the United States trade to flourish, greatly promoted the process of diversification of trade in Latin America.
In addition, the Latin American Banking Federation said that after years of restructuring and reconstruction, Latin America, financial mechanisms and risk management capabilities have been strengthened, the anti-risk ability to increase significantly. At the same time, as oil and raw material prices decline, Latin American countries, inflationary pressures eased, so that Latin American countries to adopt more policies and measures to stimulate economic growth provided a space.
First of all, Latin America's stock and foreign exchange markets by the first financial crisis. The last 3 months, the stock market has been in Latin America as Europe and the United States stock market turbulence. To prevent the dollar on the over-appreciation of national currency rise to a serious inflation, Latin America, many countries have the central bank to sell U.S. dollars. Mexico and Brazil have reached the foreign exchange markets over the past 10 years, the biggest decline, Mexico's central bank has to sell at least 12,500,000,000 U.S. dollars, the Brazil has to sell U.S. dollars and plans of action.
Second, Latin America's mineral, oil and agricultural exports, such as the rapid development in recent years, such as Chile's copper, coffee in Colombia, Brazil and Argentina's meat and grain, Venezuela and Mexico, and Ecuador's oil. However, its main export to the United States and Europe, the regional economic recession, weak demand greatly impact on the exports of Latin American countries.
International Monetary Fund warned that the international market prices of raw materials is the Latin American countries are facing one of the major problems. The organization estimated that for every raw material prices decline by 10%, that means Latin America's GDP declined by 0.5%.
In addition, some Latin American countries, second only to income remittances of export earnings. United States and Europe, Latin America is the main source of remittances, Europe and the United States means that economic difficulties in Latin America remittances revenue. According to the World Bank forecast a few days ago, hit by the financial crisis, Latin America and the Caribbean this year, remittances of revenue is estimated at 67,500,000,000 U.S. dollars, only 1.5 percent more than last year, the growth rate was significantly lower than last year's 5.2 percent.
The World Bank said that since the financial crisis in the United States and led to a marked slowdown in economic growth, Mexico, Guatemala, Brazil and other countries of the revenue from remittances declined. Overall, this year, the inflow of remittances in the region in its gross domestic product last year, will share the 2% to 1.8%.
According to the 2001 Nobel Economics Prize winner Joseph Stiglitz, as is currently the most dependent on the U.S. economy of Latin American countries, Mexico and Colombia by the financial crisis the most serious. Second, the Central American countries because of close trade with the United States, will also be one of the main victims. The financial crisis for most South American countries less affected.
Moreno-American Development Bank predicted that Latin America suffered little effect on the economy this year, the growth rate will remain at 4.4 to 4.5 percent between. However, according to the International Monetary Fund forecast economic growth in Latin America next year will slow to 2.5 percent, Mexico's economic growth this year will fall to 1.9 percent next year, will be further reduced to a negative 0.9 percent.
However, in the face of the financial crisis, most Latin American countries are not very worried about this and the Latin American economy in recent years to adjust their own economic and trade relations between China and Latin America and the rapid development are inseparable.
From the internal factors, has gone through many financial crisis, in recent years, most Latin American countries have strengthened macro economic control, and Latin America for 5 years, rapid economic growth, markedly enhanced anti-crisis capacity. For example, in Latin America in the past from the present budget deficit into a surplus during the transition period; foreign exchange reserves are double-digit growth in recent years, 4 years, over 3 times as high as more than 4600 billion U.S. dollars; external debt to GDP ratio significantly reduced , The dependence on foreign capital has been gradually reduced, such as Brazil at the beginning of this century or one of the largest debtor, its foreign exchange reserves now more than foreign debt; on the international market demand for raw materials and high prices in recent years, and effectively support the Latin American economy Sustained and stable development.
From external factors, the emerging economies of Latin American economic development of a substantial increase in support, making the economy in Latin America, unlike in the past as over-reliance on Europe and the United States economy. Latin America and other regions outside Europe and the United States trade to flourish, greatly promoted the process of diversification of trade in Latin America.
In addition, the Latin American Banking Federation said that after years of restructuring and reconstruction, Latin America, financial mechanisms and risk management capabilities have been strengthened, the anti-risk ability to increase significantly. At the same time, as oil and raw material prices decline, Latin American countries, inflationary pressures eased, so that Latin American countries to adopt more policies and measures to stimulate economic growth provided a space.
