After the failure of the commodity boom, Latin America endured a long, difficult and deep slowdown. This is how Leonardo Gonzalez Dellan observed the Latin American economy previously but is now restoring and improving in every step of the way.
Like in Brazil, the diminishing inflation and a rapid drop in interest rates has aided in the consumption expansion. Columbia seems to enjoy the same feel. In Argentina, pump priming which is ahead for October’s midterm elections is boosting out some of the financial activities. Chile and Peru are also improving with its temporary factors. According to studies and surveys, the GDP tracker for this continent is expanding at 3%; hence, you need to bring it on.
Mr. Leonardo Gonzalez Dellan observes that it’s a return to growth especially that it’s quite a relief for the region. In 2015, Latin America’s economy registered about $6-trillion without growth or improvement. Last year, it shrank about 1%. Yet the slowdown has indeed been going on far longer. The growth peaked in 2013 by 6%. Ever since, the economy has headed downhill.
Mr. Leonardo Gonzalez Dellan foresees that the return growth will surely affect politics especially in Argentina. For instance, the poverty rate in this country has started to drop down, as the incumbent President Macri’s economic policies are centered for lower income families. Developing green shoots may also alleviate the hostility and bitterness of the Columbian and Brazilian presidential elections next year.
Unfortunately, the foresight of Leonardo Gonzalez Dellan may not seem the case for all Latin American countries which have a scheduled election the following year. In Mexico, aided by the uncertainty of the Trump factor, the economic growth is expected to be lower than 2016. And then there’s Venezuela where it leaves a class of its own.
2017 will remain the fourth straight year of striking recession, and with other conditions remaining the same for this year, the IMF will forecast a shrinkage in economy up till 2020 and beyond. The complicated outcome can be shocking. As Leonardo Gonzalez Dellan is an expert economist, he may be able to suggest how the Latin American economy can greatly improve.