Secular Stagnation Heads South
An extraordinarily benevolent external environment sustained rapid GDP growth in Latin America in the years following the 2008-2009 global economic crisis. But now, as commodity prices fall and the Fed’s gradual exit from quantitative easing boosts US interest rates, the region’s economies could be facing a long-term slowdown.
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SANTIAGO – As commodity prices come back to earth and the Federal Reserve’s gradual exit from quantitative easing leads to higher interest rates in the United States, Latin America’s economies face the challenge of sustaining growth. The region’s main economies recorded slower GDP growth in 2013, and much the same is being forecast for 2014.