Latin America will enter into a new growth cycle in 2004, spurred by economic expansion of more than 3 percent in half of the countries in the region, particularly regional heavyweights Brazil, Argentina and Venezuela, according to the results of a recent study.
The study conducted by the Autonomous University of Madrid’s Center for Economic Forecasts (Ceprede) predicted a “spectacular recovery” for Venezuela’s economy, which, according to these experts, will grow 7 percent this year after shrinking 9.5 percent in 2003.
The economies of Brazil and Uruguay are also forecast to improve significantly, while, according to Ceprede, El Salvador, Ecuador, Mexico, the Dominican Republic and Chile will grow at a slower pace.
The rest of the countries in the region are expected to maintain relative economic stability.
The report said that, following six years of instability, most Latin American countries have managed to bring their economies under control through sound fiscal and monetary policies.
Even countries that have endured more severe crises are on the road to recovery, Ceprede said.
Almost all Latin America will experience moderate inflation, but the study recommends “not giving into excessive optimism” given that countries like Brazil and Venezuela continue to post double-digit inflation. EFE
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