According to the new semiannual World Bank report on Latin America and the Caribbean, both regions are showing signs of economic recovery and a higher amount of exports, including high-quality new products,
The region is expected to contract by 1.1% in 2016 before recovering and grow to 1.8% in 2017, as stated by the report of Consensus Forecast. The effect is attributed to a recovery in South America, where it is expected to reach a 1.5% of growth in 2017.
The regional slowdown seems to be reaching an end, it is expected that the average growth rate becomes positive in 2017,
declared Augusto de la Torre, Chief Economist of the World Bank for Latin America and the Caribbean.
According to the World Bank, the good news are that some preliminary evidence suggests that countries in the region are increasing the volume of its exports, including new, higher-quality products that find a place in the US and Europe’s markets.
However, just as the region appears to be ready to strengthen its presence in international markets, the world seems to be heading the opposite direction, since the level of world trade is flattening or even declining, affected by a contraction in the volume of Chinese imports and East Asia in general.
In addition, the most competitive exchange rates, achieved after the last-two-year adjustments, clear the path to increase regional trade by replacing imports from outside with goods and services efficiently produced within the region. The report also reveals that countries with flexible exchange rates are diversifying their items and export destinations.