News > July 2007

Jul 30, 2007 Telefonica Profit Doubles; Annual Forecasts Raised
Jul 30, 2007 More Growth For Latin America, Caribbean 2007-2008
Jul 30, 2007 Latin Ad Boom Continues
Jul 26, 2007 Latin American and Caribbean Economies Register 5% Growth in 2007
Jul 20, 2007 North and Latin America at Juncture for Free Trade

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Latin American and Caribbean Economies Register 5% Growth in 2007

Date: 2007-26-07
By www.caribbeanpressreleases.com

The positive performance of the world economy is the backdrop to elevated growth underway in the economies of Latin America and the Caribbean. The outlook for regional growth is 5% for 2007 and 4.6% in 2008, following the 2006 growth rate of 5.6%.

So states the new Economic Survey of Latin America and the Caribbean 2006-2007, released in Santiago, Chile by ECLAC Executive Secretary José Luis Machinea. Should projections for 2008 be borne out, the region's per capita GDP will have risen by 20.6% (over 3% per year, on average) by the time it completes its sixth consecutive year - since 2003 -- of growth.

According to ECLAC, in 2007 the economies of South America are expected to grow by 5.7%, whereas Mexico and Central America will increase by 3.6%. Growth projections for the Caribbean stand at 5.5%.

The report notes that growth registered in the region over 2006 was characterized by two trends: surplus on the balance-of-payments current account and the positive primary balance posted by the public sector.

These surpluses are largely attributable to strong improvements in the region's terms of trade, which have risen by the equivalent of 3.4% of GDP, especially in South America. Improved terms of trade have contributed to the increase of the trade balance surplus and an upswing in fiscal revenues.

Also in 2006, the volume of exports of goods and services for the region as a whole expanded by 7.3%. This dynamism was helped by US economic growth, in the case of Mexico, and by the unremitting external demand for raw material exports from Latin American and Caribbean countries, in addition to the pace of economic activity and domestic demand in the region, which has spurred intraregional trade in manufactures. In addition, the volume of imports of goods and services surged by 14.2%.

The steady rise in the level of economic activity is reflected in improved labour-market indicators. Not only did the unemployment rate drop from 9.1% in 2005 to 8.6% in 2006, but job quality also rose.

The weighted average inflation rate for Latin America and the Caribbean was 5% in 2006 (down from 6.1% in 2005). Brazil experienced the largest drop (from 5.7% to 3%).

Another encouraging development highlighted by the report is the region's reduced vulnerability, as reflected in the striking reduction of its external debt burden, as measured both in terms of GDP (in 2006 it shrank from 26.0% to 22.0%) and regional exports (from 101% to 84%). The countries of the region have also expanded their international reserve assets by some US$ 57 billion.

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