Some Latin American economies might in fact be better prepared to recover from the crisis than several of the more developed economies and are, in principle, in better economic shape as a number of them have generated stabilization funds to support their respective economies.
While the growth of markets elsewhere in the world such as the Chinese economy has also contributed significantly to Latin America’s rise, a lot of those Western Hemisphere countries are resource-rich to start with, so they have enjoyed significant additional benefits from the economic development in China. We forecast this Latin American-Asian relationship to further strengthen as China’s demands for access to Latin America’s natural resources create an infrastructure in the region that will enable resources to flow back to China. Hence, don’t be surprised to see sooner than later billions of dollars invested in infrastructure for that purpose. For Latin America, this economic boom promises continued political and social stability.