LatAm Poised for a Turnaround

In these early days of 2018, it is sad and ironic that just as Latin America is reemerging from a prolonged period of recession and sluggish growth, it’s most important trading and investment partner, the United States, is looking inward and embracing economic nationalism, Miamiherald reported. The importance of US commerce with the Americas cannot be overstated. US producers export three times more to Latin America than to China. Central and South America (excluding Mexico) purchase 50% more US goods than do the Chinese. In total trade, Latin America accounts for approximately 25% of total US trade, and the United States runs a surplus of more than $2 trillion with the region. As for foreign direct investment, 73% of the total ($170 billion) comes from the United States. Growing confidence among the private sector, accommodative financial conditions, rising commodity prices and overall improvement in the global economy will usher in 2.4% growth in 2018 and 2.7% in 2019, it is predicted.